Chapter 12 Marketing Channels Distribution Strategy.docx

4 Pages
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Department
Management and Organizational Studies
Course Code
Management and Organizational Studies 2320A/B
Professor
John White

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Description
Chapter 12 Marketing Channels Distribution Strategy The Importance of Distribution Distribution Channels Supply Chain and Logistics Are Related Distribution Channel The institutions that transfer the ownership of and move goods from the point of production to the point of consumption Supply Chain Management Refers to a 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 Wholesalers Those firms engaged in buying taking title to often storing and physically handling goods in large quantities and then reselling the goods usually in smaller quantities to retailers or industrial or business users Retailers Sell products directly to consumers Logistics Management The integration of two or more activities for the purpose of planning implementing and controlling the efficient flow of raw materials inprocess inventory and finished goods from the point of origin to the point of consumption Distribution Channels Add Value Distribution channels perform a variety of transactional logistical and facilitating functions One important role played by intermediaries is to reduce the number of marketplace contacts resulting in more efficient systems Designing Distribution Channels Channel Structure Direct DistributionManufacturers deal directly with consumers TigerDirectcom Avon Indirect Distribution One or more intermediaries work with manufacturers to provide goods and services to consumers Ford and Coca Cola retailer and Cadbury FritoLay Wholesaler and Retailer Multichannel Distribution Customer ExpectationsChannel Member Characteristics Distribution Intensity Distribution Intensity The number of channel members to use at each level of the supply chain 1
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