WMKT101 Distribution Marketing Fundamentals 代写
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WMKT101 Distribution Marketing Fundamentals 代写
WMKT101 Distribution
Distribution (place)
Learning objectives:
• understand the concept of place and how distribution
channels connect producers and consumers/organisational
buyers
• describe the major activities involved in the distribution of
products
• recognise the characteristic structures involved in distribution
• understand the advantages and disadvantages of using
distributors
• appreciate the differences in managing distribution based on
“cooperation” versus “conflict”
• understand the major aspects of retailing and the challenges
facing conventional retailers
The marketing process
4
Channels of distribution
are distinctive and important because they :
•are relatively enduring and inflexible (longer than product life
cycles)
•typically involve independent but interdependent
organisations
•(“Conflict” V. “Cooperation” Paradigms)
•also involve the customer as an active participant
•are a major “entry barrier” and determinant of profit
•are inextricably linked to “customer service”
•are a key driver of marketplace changes (linked to
technological change)
•are a potential source of a “sustainable competitive
advantage”
Retailing versus e-tailing
in the florist industry
• Roses Only
Dial-up Broadband
Marketing channels
• Marketing intermediaries are individuals or
organisations that act in the distribution chain between
the producer and the end user (e.g. industrial buyers,
wholesalers, agents and brokers and retailers).
• The distribution channel involves a group of individuals
and organisations directing products from producers to
end users.
Marketing channels
• Effective intermediaries in marketing channels achieve the
following:
• Time utility: Making products available at the time the
consumer wants to purchase them
Marketing channels
• Effective
intermediaries in
marketing channels
achieve the following:
• Place utility: Making
products available in
the locations that the
consumer wants
them
Marketing channels
• Effective intermediaries in
marketing channels achieve
the following:
• Form utility: Customising
products to the consumer’s
particular needs
Marketing channels
• Effective intermediaries in marketing channels achieve
the following:
• Exchange efficiencies: Making transactions as simple and
cheap as possible by establishing and managing efficient
exchange processes.
Marketing channels and
the economy of reduced contacts
Consumer product
marketing channels
“Export”
$$
Business-to-business product
marketing channels
Functions (flows) in distribution
1. Physical Flows 1. Material Flow 1. Logistics
Function
2. Title Flows 2. Contract Flow 2. Transaction
Function
3. Payment Flows
4. Information Flows 3. Contact Flow 3. Facilitation
Function
5. Promotional Flow
15
Five marketing flows in the
marketing channel for forklift trucks
Effective
Delivery
ADDED
VALUE
Selling
Skills
Market
Segmentation
Customer
Contacts
Market
Knowledge
& Coverage
Customer &
Manufacturer
Services
Specialisation
Lower Costs
Advantages of using distributors
Middleman’s
Profit
ADDED
COSTS
Competitors’
Products
Poor
Management
Inadequate
Communi-
cations Conflicting
Objectives
Less
Customer
Contact
Lack
Technical
Expertise
Less
Control
Disadvantages of using distributors
Types of Intermediaries
• Merchants (take title and negotiate sales)
•Wholesalers
•Retailers
• Agents (negotiate sales but do not take title)
•Brokers,
•Representative Agents
• Facilitators (neither take title nor negotiate sales, but still
perform ancillary functions)
•Transport Companies
•e-fulfilment Specialists
•Finance Intermediaries
•Warehousers
Golden rules of channel structure
1. One can eliminate or substitute institutions in the
channel arrangement
2. However, the functions these institutions perform
cannot be eliminated
3. When institutions are eliminated, their functions
are shifted either forward or backward in the
channel and, therefore, are assumed by other
members
Thus, you can eliminate channel members but you
cannot eliminate the functions they perform.
The value-adds versus costs of
different channels
Break-even Cost
Chart
(the “make or buy”
decision?
Marketing channels
• The market coverage decision takes
into account the nature of the product
and its target market.
• Generally, marketers will choose from:
• intensive distribution which
distributes products via every suitable
intermediary
Marketing channels
• Exclusive distribution which distributes products through a single
intermediary for any given geographic region
• ** “exclusively available at Woolworths”
Marketing channels
• selective distribution which distributes products through
intermediaries chosen for some specific reason.
Supply-chain management
• Supply-chain management
Managing marketing channels based on ongoing
partnerships among marketing channel members that
reduce costs, eliminate redundant processes and
develop new ways to deliver value to customers.
• When one member of the marketing channel can exert
power over the ability of other members to achieve
goals, that member is known as the channel captain, and
has channel power.
Supply-chain management
• Channel Conflict:
• The more parties involved in a marketing
channel, the greater the potential for conflict.
Source: J French & B Raven, ‘The Bases of Social Power’
in D Cartwright (ed) Studies in Social Power, 1959
Managing channel relationships:
sources of channel power
• Coercive
• Legitimate
• Reward
• Expert
• Referent
Referent Power
Co-operation
Satisfaction
High Performance
Coercive Power
Conflict
Dissatisfaction
Low Performance
Uses of channel power:
evaluating supply chain performance
Power Base Employed
Channel
Atmosphere
http://www.smh.com.au/business/retail/table
s-will-turn-on-woolworths-coles-says-jeff-
kennett-20151009-gk5fxk
Channel power in supermarkets
Supply-chain management
• Horizontal channel integration
• Bringing organisations at the
same level of operation under a
single management structure
• e.g. When a retailer buys out a
competitor
• Vertical channel integration
• Bringing different stages of the
marketing channel under a
single management structure.
Supply-chain management
• Vertical marketing system (VMS)
• A marketing channel in which all stages
occur under a single management
structure.
• Franchising
• An approach to business in which one
party (a franchiser) licenses the
business model to another party (a
franchisee).
Retailing
• Retailing
• Any exchange in which the buyer is the
ultimate consumer of the product.
• Retailing excludes transactions in which the
buyer intends to resell the product or use it
in the making of another product.
Types of retailers
• There are many different types of retailers. Generally,
they fall under the categories:
• General-merchandise retail store
Offer a wide variety of products, e.g. department store, convenience
stores
• Speciality retail store
Carry just one or a small number of
different types of products, but within
that product line, they carry a great
deal of variety.
Types of retailers
• Direct marketing
• Non-store retailing that promotes and sells
products via mail, telephone or the web (eg
Dell).
• The main types of direct marketing are
online retailing, telemarketing, catalogue
marketing, television shopping and direct
response marketing.
• Mobile e-commerce is also an example of
direct marketing.
Types of retailers
• Door-to-door selling
• Sometimes known as ‘direct
selling’. In the past, salesperson
would walk from door to door to
promote products to the person
at home. Usually, customers are
now identified by other means
and an appointment is made.
• e.g. Tupperware parties
• Automatic vending
• Use of machines to dispense a
product; used for small, routinely
purchased products.
Types of retailers
• The ‘wheel of retailing’ theory
• The theory is that retailers enter the market with low
costs, low margins and low prices, but move to high costs
and high prices as they seek to compete with copiers,
only to then have to compete with new low-price
entrants.
WMKT101 Distribution Marketing Fundamentals 代写
• Online retailing (or e-tailing) involves selling to
customers via the internet.
• Mobile e-commerce is the use of a mobile phone to
make purchases.
Retailing challenges
• Newsagencies facing tough times
Broadband
Distribution (place)
Learning objectives:
• understand the concept of place and how distribution
channels connect producers and consumers/organisational
buyers
• describe the major activities involved in the distribution of
products
• recognise the characteristic structures involved in distribution
• understand the advantages and disadvantages of using
distributors
• appreciate the differences in managing distribution based on
“cooperation” versus “conflict”
• understand the major aspects of retailing and the challenges
facing conventional retailers
WMKT101 Distribution Marketing Fundamentals 代写
