Académique Documents
Professionnel Documents
Culture Documents
Discrepancy in Time;
1. Marketing Functions
2. Specialization
3. Assortment
4. Channel Separation
1. Marketing Functions
With Wholesaler
Intermediary
Factory General
Warehouse Sales Office
Company
Truck
Regional Direct Sales
Warehouse Office
Common
Carrier
Public
Distributor
Warehouse
Local
Retailer
Deliver
Consumer
Market Distribution Strategy Development
1. Distribution Structure
3. Channel Relationships
1. Distribution Structure
Manufacturers
Raw
Materials
Retailers
Manufacturer
Agents / Brokers
Wholesaler / Distributor
Retailer s/ Dealers
Direct Indirect
Market Coverage
Intensive Distribution:
The placement of products in as many outlets or locations as
possible.
Potentially done for products that consumers purchase
frequently and with minimal shopping effort, making location
convenience a key purchase requirement.
Selective Distribution:
The placement of products or brands in a limited # of outlets
within a specific geographic area.
Exclusive Distribution:
Placement of brand in only one outlet in each geographic area.
2. Market Distribution Channel Design Process
1. Channel Mapping
A. Delineation of market segment being served;
B. Proceed backward from markets and identify various channel
participants involved in serving markets;
C. Characterize flows in terms of: volume of activity, functions
and activities performed, and/or economic characteristics of
transactions.
2. Matrix Approach
This approach extends the concept of channel separation and
provides insights into the most appropriate participants and
structures to accomplish objectives.
2. Market Distribution Channel Design Process (contd.)
Single Partnerships
Conventional Administered Contractual Joint Venture
Transaction & Alliances
Dependency
Two Issues:
Transfer of Title (i.e. Ownership)
Price
Various Approaches to Pricing
FOB Pricing (FOB Origin, FOB Destination)
Delivered Pricing
Single-Zone Pricing
Multiple-Zone Pricing
Base-Point Pricing
Pricing Issues
Potential Discrimination
Quantity Discounts
Pickup Allowances
Promotion Pricing