Presentation on theme: "Distribution Strategies. Channel of Distribution - Defined A series of firms or individuals who participate in the flow of goods or services from producer."— Presentation transcript:
Channel of Distribution - Defined A series of firms or individuals who participate in the flow of goods or services from producer to consumer or final user.
Supply Chain Management - Defined Integration and collaboration of all members of the marketing channel.
Graphical Depiction of a Supply Chain
Factors in Successful Supply Chain Collaboration
Channel Structure Strategy Direct Indirect 1.Traditional 2.Vertical corporate administered contractual relational Structure decision is affected by technology, social/ethical standards, laws, geographic size/population, cultural traits
Distribution-Scope Strategy ä Exclusive ä strong dealer loyalty ä high degree of control ä potential loss in sales volume ä Intensive ä generally convenience goods ä limited control over products ä Selective ä generally shopping goods ä retailers apply pressure to reduce the number of outlets ä greater retail support than with intensive ä gain the appropriate “fit”
Multiple-Channel Strategy ä Complementary Channels each channel handles a different noncompeting product or noncompeting market segment done to enlist customers and segments that cannot be served when distribution is limited to a single channel Competitive Channels ä the same product is sold through two different and competing channels ä be careful of dealer resentment
Channel Power ä A firm’s power is inversely proportional to how dependent another channel member is on that firm. ä Sources of power within channel relationships: ä Economic ä Coercive ä Expert ä Referent ä Legitimate
Conflict-Management Strategy Channel conflict may be defined as a situation in which one channel member perceives another channel member or members to be engaged in behavior that is preventing or impeding it from achieving its goals. Bargaining Strategy Boundary Strategy Interpenetration Strategy Superorganizational Strategy Conciliation Mediation Arbitration