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Lecture 16

2320 Lecture 16: Chapter12

7 Pages

Business Administration
Course Code
Business Administration 3301K
Angela White

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Marketing Channels: Distribution Strategy: The Importance of Distribution Convincing intermediaries, such as wholesalers and retailers to carry new products can be very difficult Distribution is not only difficult, its also expensive and involves paying listing fees o get shelf space A well thought out distribution strategy that is well integrated with other elements of the marketing mix can result in increased revenues Ex. Brick Brewing introduced 473militre brown plastic bottles that chill faster, stay cold longer, and are light weight and unbreakable, making Brick the first Canadian company to put beer in a plastic bottle The plastic bottles were closely tied to distribution strategy because it allowed Brick to expand its sales to outlets where glass bottles were prohibited (university residence, sports events, and concert venues) Distribution Channels, Supply Chain, And Logistics Are Related: Distribution Channel: The set of institutions that transfer the ownership of and move the goods from the point of production to the point of consumption Supply Chain Management: Refers to the set of approaches and techniques firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores and transportation intermediaries into a seamless value chain in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, as well as to minimize system wide costs while satisfying the service levels their customers require Wholesalers: Are firms that buy products from manufacturers and resell them to retailers and retailers sell products directly to consumers The more intermediaries that are involved in the supply chain, the greater the complexity and number of transactions involved for a company to reach consumers Logistics Management: Describes the integration of two or more activities to plan, implements, and control the efficient flow of raw materials, inprocess inventory, and finished goods from the point of origin to the point of consumption Distribution channel management has been the responsibility of marketing departments, under the direction of a marketing vicepresident Logistics is the responsibility of operations, under the vicepresident of operations Distribution Channels Add Value Distribution channels are composed of entities that are buying, such as retailers or wholesalers; selling, such an manufacturers or wholesalers; or helping facilitate the exchange, such as transportation companies Intermediaries reduce the number of marketplace contacts, resulting in more efficient systems
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