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Into To Marketing Course: Week Three - Distribution

Into To Marketing Course: Week Three - Distribution

Week three of Matthews marketing short course focused on distribution.

Matthew Draycott

July 01, 2012
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  1. Research Problem Identification Problem Solving Promotion Buying Decisions Customer Demand

    Purple Cow Marketing 4p’s Branding Distribution Management Efficiency 3 Elements of Marketing
  2. ‘Marketing is the social process by which individuals and groups

    obtain what they need and want through creating and exchanging products and value with others’ Phil Kotler 2006 ‘Marketing is the art of telling a story to a consumer that they want to hear that lets them persuade themselves that they want to buy something.’ Seth Godin 2009 ‘Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.’ AMA 2007 What is Marketing?
  3. Distribution Channels All the processes and organisations through which a

    product* must pass between its point of production and consumption. *Or Service
  4. Distribution Functions Information Gathering and distributing market research and intelligence.

    Promotion Developing and spreading communications about offers.
  5. Distribution Functions Information Gathering and distributing market research and intelligence.

    Promotion Developing and spreading communications about offers. Contact Finding and communicating with prospective buyers.
  6. Distribution Functions Information Gathering and distributing market research and intelligence.

    Promotion Developing and spreading communications about offers. Contact Finding and communicating with prospective buyers. Matching Adjusting the offer to fit a buyer's needs, including grading, assembling and packaging.
  7. Distribution Functions Information Gathering and distributing market research and intelligence.

    Promotion Developing and spreading communications about offers. Contact Finding and communicating with prospective buyers. Matching Adjusting the offer to fit a buyer's needs, including grading, assembling and packaging. Negotiation Reaching agreement on price and other terms of the offer.
  8. Distribution Functions Information Gathering and distributing market research and intelligence.

    Promotion Developing and spreading communications about offers. Contact Finding and communicating with prospective buyers. Matching Adjusting the offer to fit a buyer's needs, including grading, assembling and packaging. Negotiation Reaching agreement on price and other terms of the offer. Physical Distribution Transporting and storing goods.
  9. Distribution Functions Information Gathering and distributing market research and intelligence.

    Promotion Developing and spreading communications about offers. Contact Finding and communicating with prospective buyers. Matching Adjusting the offer to fit a buyer's needs, including grading, assembling and packaging. Negotiation Reaching agreement on price and other terms of the offer. Physical Distribution Transporting and storing goods. Financing Acquiring and using funds to cover the costs of the distribution channel.
  10. Distribution Functions Information Gathering and distributing market research and intelligence.

    Promotion Developing and spreading communications about offers. Contact Finding and communicating with prospective buyers. Matching Adjusting the offer to fit a buyer's needs, including grading, assembling and packaging. Negotiation Reaching agreement on price and other terms of the offer. Physical Distribution Transporting and storing goods. Financing Acquiring and using funds to cover the costs of the distribution channel. Risk taking Assuming some commercial risks by operating the channel (e.g. holding stock).
  11. Distribution Intensity Intensive Distribution Aims to provide saturation coverage of

    the market by using all available outlets. Intensive distribution is usually required where customers have a range of acceptable brands to chose from.
  12. Distribution Intensity Intensive Distribution Aims to provide saturation coverage of

    the market by using all available outlets. Intensive distribution is usually required where customers have a range of acceptable brands to chose from. Selective Distribution Involves a producer using a limited number of outlets in a geographical area to sell products, selective distribution works best when consumers are prepared to shop around.
  13. Distribution Intensity Intensive Distribution Aims to provide saturation coverage of

    the market by using all available outlets. Intensive distribution is usually required where customers have a range of acceptable brands to chose from. Selective Distribution Involves a producer using a limited number of outlets in a geographical area to sell products, selective distribution works best when consumers are prepared to shop around. Exclusive Distribution An extreme form of selective distribution in which only one wholesaler, retailer or distributor is used in a specific geographical area.
  14. What Influences Channel Choice? Market factors How do buyer's want

    to purchase the product What information do buyers need before buying? Does the product need specific technical assistance to install or service? What are the marketing costs? What is the intermediary mark-up?
  15. What Influences Channel Choice? Market factors How do buyer's want

    to purchase the product What information do buyers need before buying? Does the product need specific technical assistance to install or service? What are the marketing costs? What is the intermediary mark-up? Producer factors A key question is whether the producer have the resources to perform the functions of the channel? Another factor is the extent to which producers want to maintain control over how, to whom and at what price a product is sold.
  16. What Influences Channel Choice? Market factors How do buyer's want

    to purchase the product What information do buyers need before buying? Does the product need specific technical assistance to install or service? What are the marketing costs? What is the intermediary mark-up? Producer factors A key question is whether the producer have the resources to perform the functions of the channel? Another factor is the extent to which producers want to maintain control over how, to whom and at what price a product is sold. Product factors Large complex products are often supplied direct to customers, by contrast perishable products require relatively short distribution channels ideally suited to using intermediaries such as retailers.