Download ELEMENTS OF DISTRIBUTION

ELEMENTS OF
DISTRIBUTION
Marketing Management
Session 9
November 4, 1998
COURSE OUTLINE
• Distribution: The origins of modern
marketing
• Some common myths of distribution
• Managerial aspects of distribution
• Video: The Fresh Connection
• Guest speakers: Procter&Gamble
MYTH No. 1
The presence of middlemen increases the
cost of the product to the consumer.
MYTH No. 2
Direct channels of distribution should be
used for highly perishable goods.
MIDDLEMEN PROVIDE
• Form utility
• Place utility
• Time utility
IMPORTANT FACTORS OF
DISTRIBUTION
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Direct vs. indirect channels
Market coverage
Type of middlemen
Channel organization
IMPORTANCE OF
DISTRIBUTION
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Long-term decision
Costly decision
Involving various departments
Involving various firms
Least controlable
TYPE OF CHANNELS
• Direct channels: conditions?
– Product category
– Customers
– Positioning, …
• Indirect channels: conditions?
– Product category
– Customers
– Positioning
MARKET COVERAGE
• Intensive distribution (mass distribution)
• Selective distribution
• Exclusive distribution
OTHER ASPECTS
• Logistics
– Transportation
– Warehousing
• Retailing
– Retailer part of the distribution channel
– As marketing company
TYPE OF MIDDLEMEN
• Wholesalers vs. retailers
• Merchants vs. intermediary
• Services provided
NEXT CLASS
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Pricing decisions, chapters 10 and 11
Pricing objectives
Pricing flexibility
Pricing strategies over the PLC
Methods of price setting
Case presentation: Canadian vs. Air Canada
Video: Leader of the pack, What the market can
bear