10 - Marketing Management MARKETNG 7104 Session 10...

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11/07/2016 1 Session 10: Distribution decisions Marketing Management – MARKETNG 7104 LEARNING Objectives Describe the role of marketing channels Recognise the importance of the role of physical distribution activities in supply-chain management and overall marketing strategies Identify the major types of retailers and explore strategic issues in retailing Recognise the various forms of direct marketing and selling Understand the nature and functions of wholesalers Examine strategic issues in marketing channels, including the factors that influence marketing channel selection, and leadership, cooperation and conflict
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11/07/2016 2 Distribution The decisions and activities that make products available to customers when and where they want to purchase them VIDEO Marketing: Channels of Distribution An introduction to the channels of distribution
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11/07/2016 3 The Role of Marketing Channels Marketing channel (channel of distribution or distribution channel) A group of individuals and organisations that produce products for, and deliver products as middlemen to, customers; referred to as ‘place’ in the marketing mix Marketing intermediaries Middlemen that link producers to other intermediaries or ultimate consumers through contractual arrangements or through the purchase and resale of products Marketing Channel Activities Performed by Intermediaries
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11/07/2016 4 Marketing Channels Create Utility Time utility Having products available when the customer wants them Place utility Making products available in locations where customers wish to purchase them Possession utility Giving the customer access to the product to use or to store for future use Form utility Assembling, preparing or otherwise refining the product to suit individual customer needs Marketing channels facilitate Exchange Efficiency
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11/07/2016 5 TYPES OF MARKETING CHANNELS Direct – A marketing channel owned and managed by a single channel member to supply a target market segment Indirect – A marketing channel comprised of several independently owned channel members who work together to serve a target market segment Multiple – A combination of direct and indirect channels whereby each channel is used to reach a different target market Hybrid – A combination of direct and indirect channels whereby different channels are used to reach the same target market segment PHYSICAL DISTRIBUTION Also known as logistics Involves activities used to move products from producers to consumers and other end users Order processing Inventory management Materials handling Warehousing Transportation
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11/07/2016 6 Order Processing The receipt and transmission of sales order information Order entry Order handling Order delivery Electronic data interchange (EDI) A computerised means of integrating order processing with production, inventory, accounting and transportation Inventory Management
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