Distribution & Retailing
Placement: asthelast Pof 4psanalysis, which weight heavily in B2B businessandhasalot to do
with not only thephysical locaiton of thebusiness.
How dothingsget to wherewe find them?
Pricepoint, brands,andstyle etc.As marketersyou must understand, thelocation andplacement
of your product anddistribution channel areimportant for retailer businessandfor customers.
Distribution channels, supply chain andlogisticsarerelated
consistsof instributinos, from manufacturesto theendcustmers, but we talk all thesectionsasdif
Supply chain management
both distribution channel andlogisticsmanagement arepartsof supply chain management
Are about managing theactivitiesgoing onwithin andbetweeninstitutionsto makesureit flows
Without anintermediary: aretailer must goto variety of brandandproductscompaniesto get the
product availablefor thecustomers.
Ex: 5brandsof TV, 4customers, 5*4=20 transaction
However, with anintermediary, suchasbestbuy, canmakeit moreefficient andlesstimeconsumi
ngfor both customersandproducers.
Contact efficient: provideaplacefor customersto get know all productsavailablein themarket p
Suupply chain (suppliersandsuppliersnetworks):suppliers, producers, consumers Distribution channels(wholesalers/retailers): from producersto consumers
Both supplier chain anddistribution channelscombinedthelogisticsmanagement (flow of materi
3key functionsperformedby intermediaries
Buying: purchasegoodsfro resaleto other intermediariesor consumers
Risk taking: ownership or inventory that canbecomeoutdated
Promotion: promoteproductsto attract consumers
Selling: transact with potential customers
physical distribution: transport goodsto point of
gather information, financing
Distribution channel structure: direct & indirect
Direct: manufacture--> consumer
ex: onlinestores: Deil computersyou candirectly order from themanufacture,TigerDirect.com,
ex： Amazon, Car Dealerships, Coca-Cola,basiclly retailer
ex: Cadbury, Frito Lay Multichannel strategy:
Actually most commonusedby most markersin order to attract customersfrom morethanoneco
In aB2B business,salesforcefrom themanufacturer deal directly with anther business. If thebu
sinessdoesnot want alargequantity, they may chooseto deal with your dealersdirectly.
If themanufacturersdoesnot haveastrongbrandawarenessamongcustomers, they will choosea
intermediary who hasexisting customer baseandbetter recognized, andwork asaintermediary b
etweenyou andyour customers.
Product characteristicsdrivethechain structure.
Intensive: zellers, loblaws, shoppers, walmart
Selective: sears, bay
Exclusive: Cartier, Tiffany & Co.
Placeyour product basedonconsumer'sdeception of your product, thenatureof your product typ
** recall: ConvenienceGoodsVS Shopping GoodsVS Speciality Goods
exclusivedistribution canbenefit manufacturesby assuring themthat: themost appropriatecusto
mersbuy their product
Happenswhenmembersarenot in agreement about goals, roles,rewards.
Weneedto managethepotential for conflict, typically through4ways. Concept: vertical marketing system
-Supply chain wheremembersact in aunified system
-which meansthetop player cancontrol all theother playersin thedistribution chain
Typesof vertical marketing systems
Independent or conventional supply chain: several independent memberswho act to satisfy their
Administeredvertical marketing system: nocommonownership or contractual relationship but th
ereis adominant channel member who yieldsmorepower (e.g: walmart)
-onestepupfrom independent or conventional supply chain
Corporatevertical marketing system: parent company hascompletecontrol/ownership anddictate
-control thedistribution chain
Contractual vertical marketing system: independent channel membersenter into contractsto obtai
neconomiesof scaleto reduceconflict
-noonecontrol over eachother, but one'sperformancedoinfluencetheother'sperformanceandi
sregulatedby alegal document
Supply Chain Management
Takescareof themovement of raw materials, theflow of information andhow eachpersonintera
ct with eachother
It is acircular process,onecomponent'sdisfunction would influencetheoverall process.So,the
management of this supply chain is imporant, to makesureeverythign flows efficiently.
ex: SAP: helping theflow of information, tracting goodsin areal timemanner.
LogisticsManagement Management of inboundtransportation-->Receiving andchecking using UPCandRFID--> Storin
gandcross-docking--> getting merchand