ADM 1300 Lecture Notes - Lecture 10: Logistics, Supply Chain, Marketing Mix
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Distribution: aka place the final p in the marketing mix, product gets to ultimate buyers through channels of distribution, there are several distribution components Channel structure: direct distribution, indirect distribution, multichannel distribution or some combination of these forms. Distribution channel management: strategic and key: importance of channel management: Continuous search for sustainable competitive advantage (sca) more reliably found in channel management. Csa now more difficult to attain through the usual ways (product, price, promotion) Larger retailers have enormous power in the distribution channel (think walmart!) Becoming buying agents for customers, instead of their traditional role as selling agents for suppliers. Most operate on the low price/low margin model (again, think walmart!: a strategic necessity is to continuously reduce distribution costs. The costs of distributing goods are a significant percentage of the final price of products (recall the video: supermarket inc. fish flown in on a 737!: technology"s increasing role and power.
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