Management and Organizational Studies 2320A/B Chapter Notes - Chapter 12: Supply Chain, Logistics, Direct Marketing
Document Summary
Place, which includes all activities required to get the right product to the right customer. Chapter 12: distribution channels (place) when that customer wants it. Direct distribution: direct distribution channels allow manufacturers to deal directly with consumers, direct distribution also plays a significant role in b2b dealings with companies that sell directly to their largest customers in the public and private sectors, ex. Multichannel distribution: multichannel, or hybrid, approach to distribution, ex. Higher end makeup only being in higher end stores and not drugstores. In some cases, limiting distribution can limit sales. Expensive watches: retailers still have a strong incentive to sell the products but not to the same extent as if they had an exclusive territory. Functions performed by intermediaries: one important role played by intermediaries is to reduce the number of marketplace contacts, resulting in more efficient systems.