Presentation is loading. Please wait.

Presentation is loading. Please wait.

PowerPoint Slides to accompany Rix Marketing: A Practical Approach 7e.

Similar presentations


Presentation on theme: "PowerPoint Slides to accompany Rix Marketing: A Practical Approach 7e."— Presentation transcript:

1 PowerPoint Slides to accompany Rix Marketing: A Practical Approach 7e

2 Rix Marketing: A Practical Approach 7e Next: Distribution Performs Several Functions Chapter Eleven: Distribution Strategies Learn more on page 390 What is Distribution? The role of distribution (placement) is to make the firm’s products available to customers: Fast and efficient Convenient and accessible Safe and secure These qualities of distribution add to customer satisfaction

3 Rix Marketing: A Practical Approach 7e Next: Middlemen (Intermediaries) Chapter Eleven: Distribution Strategies Learn more on page 390 As a marketing mix element, distribution performs several functions: Provides information about products Transfers title to products Handles, stores and delivers goods Estimates the level of demand Finances stock between manufacturer and customer

4 Rix Marketing: A Practical Approach 7e Next: Distribution Channels Chapter Eleven: Distribution Strategies Learn more on pages Middlemen (Intermediaries) Independent firms that provide links between producers and customers Services provided to suppliers Services provided to buyers Middleman provides market information interprets consumers’ wants promotes producers’ products creates assortments stores products negotiates with customers provides financing owns products shares risks anticipates wants subdivides large quantities of a product stores products transports products creates assortments provides financing makes products readily available guarantees products shares risks

5 Rix Marketing: A Practical Approach 7e Next: Vertical Marketing Systems (VMS) Chapter Eleven: Distribution Strategies Learn more on pages Distribution Channels The people or firms who carry out the distribution functions: Producers or Services Providers Ultimate Consumers or Business Customers merchant wholesalers agents retailers merchant wholesalers agents

6 Rix Marketing: A Practical Approach 7e Next: Franchising: the largest form of VMS Chapter Eleven: Distribution Strategies Learn more on pages Vertical Marketing Systems (VMS) A channel whose members are tightly coordinated to achieve operating efficiencies and marketing effectiveness. Three types: Corporate o Darrel Lea, Country Road Administered o Bristol Paints Contractual o Wholesaler owned; IGA o Retailer owned; Mitre 10 o Franchise; Flight Centre

7 Rix Marketing: A Practical Approach 7e Next: Choosing the Right Channel Chapter Eleven: Distribution Strategies Learn more on pages Franchising: the largest form of VMS Advantages: Allows for fast expansion Spreads capital investment and risk Franchisee’s commitment compared to employees Gives franchisees access to management skills Allows for wide promotion Limitations (in some instances): Poor operating systems Unfair franchise agreements

8 Rix Marketing: A Practical Approach 7e Next: Distribution Intensity Chapter Eleven: Distribution Strategies Learn more on pages Choosing the Right Channel Need to take several factors into account: Market factors o market type o number of customers o dispersion of customers o average order size Product factors o unit value o technical complexity o trade-ins o service support required Middlemen factors o competence o availability and willingness Company factors o financial resources o management ability o desire for channel control

9 Rix Marketing: A Practical Approach 7e Next: Working with Channel Members Chapter Eleven: Distribution Strategies Learn more on pages Distribution Intensity How many middlemen to use in each market place. Intensity of distribution Distribution through every reasonable outlet in a market Distribution through multiple but not all outlets in a market Distribution through single wholesaling middleman and/or retailer in a market Intensive SelectiveExclusive

10 Rix Marketing: A Practical Approach 7e Next: Five Minute Quiz Chapter Eleven: Distribution Strategies Learn more on pages 410 – 413 Working with Channel Members Managing a channel requires constant attention and effort: Negotiate the most appropriate agreement Support & motivate channel partners Evaluate members’ performance Deal with channel conflict o horizontal conflict o vertical conflict Work within legal constraints o dealer selection o exclusive dealing o tied contracts o exclusive territories

11 Five Minute Quiz 1.List five roles for distribution in the marketing mix 2.List five services performed by middlemen 3.Contrast direct and indirect distribution 4.List four advantages of franchising 5.Give examples of firms using intensive, selective and exclusive distribution Rix Marketing: A Practical Approach 7e Chapter Eleven: Distribution Strategies


Download ppt "PowerPoint Slides to accompany Rix Marketing: A Practical Approach 7e."

Similar presentations


Ads by Google