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

2. These qualities of distribution add to customer satisfaction
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
Rix Marketing: A Practical Approach 7e Next: Distribution Performs Several Functions Chapter Eleven: Distribution Strategies Learn more on page 390

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

4. Middlemen (Intermediaries)
Independent firms that provide links between producers and customers
Services provided to suppliers
Services provided to buyers
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
Middleman
Rix Marketing: A Practical Approach 7e Next: Distribution Channels Chapter Eleven: Distribution Strategies Learn more on pages

5. 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
Rix Marketing: A Practical Approach 7e Next: Vertical Marketing Systems (VMS) Chapter Eleven: Distribution Strategies Learn more on pages

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

7. 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
Rix Marketing: A Practical Approach 7e Next: Choosing the Right Channel Chapter Eleven: Distribution Strategies Learn more on pages

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

9. Distribution Intensity
How many middlemen to use in each market place.
Intensity of distribution
Intensive
Selective
Exclusive
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
Rix Marketing: A Practical Approach 7e Next: Working with Channel Members Chapter Eleven: Distribution Strategies Learn more on pages

10. 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
horizontal conflict
vertical conflict
Work within legal constraints
dealer selection
exclusive dealing
tied contracts
exclusive territories
Rix Marketing: A Practical Approach 7e Next: Five Minute Quiz Chapter Eleven: Distribution Strategies Learn more on pages 410 – 413

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