3--2007_Distribution

3--2007_Distribution - Distribution Strategy How to Get the...

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1 Distribution Strategy How to Get the Right Product to the Right Customer at the Right Time, and in the Right Place
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2 Or  Location, Location, Location
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3 Or  Location, Location, Location
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4 Distribution Channels Channel functions Conflict in the channel: Adversarial vs. collaborative relationships Choosing the best way(s) to distribute your products Appendices 1. Use own sales force or independent distributors? 2. Decisions about Distribution Intensity
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5 Channel Functions Many different and necessary functions performed by a distribution channel/system Selling Financing Logistics Service and support
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6 Distribution Channel Functions that Create Value How do wholesalers and retailers earn their margins? What functions do the channels perform? Selling Activities Personal Selling Education Inquiry Handling Needs Assessment Mkt Intelligence Service & Support Training Technical Support Returns & Exchanges Spare Parts Maintenance/Repair Logistics Order Processing Warehousing Breaking Bulk Shipping Assortment Billing Financing & Terms Quantity Discounts Credit Leasing Options Insurance Taking Title The Value of the Channel
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7 Channel Functions A marketer can decide to eliminate channel members , …. but one can not eliminate channel functions . i.e.,  Eliminating the middleman   saves no  money unless : someone  else  does the function previously performed by the  middleman  and  does it at a  lower cost
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8 Efficiency vs. Effectiveness  in the Distribution Channel   If manufacturer drops distributors and goes direct, manufacturer must do all of the functions that distributor used to do Needs to ask itself: Can it do them better? Can it do them more efficiently?
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9 Causes of Channel Conflict Attempts to abuse power by a channel member Multiple (parallel) channels
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10 Multiple Distribution Channels    Consumer Goods
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11 Multiple Distribution Channels    Business to Business Goods
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12 Hewlett Packard      Different Distribution Outlets Consumer electronics stores (Best Buy) Corporate account dealers Office products super stores (Office Depot) Computer products super stores (Comp USA) H-P web site Indirect mail order (PC Warehouse) Web sites of stores (staples.com)
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13 Conflict in the Channel:   Manufacturer s View 1. Want to sell to all of our customers (won’t leave largest customers for us to more effectively sell direct) 1. Our distributors do NOT : provide us with information about who buys our products Sufficiently emphasize our brand name and product lines. use our suggested list prices. Primarily want to sell on price, not on value.
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This note was uploaded on 05/12/2010 for the course MAR 5805 taught by Professor Sawyer during the Fall '08 term at University of Florida.

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3--2007_Distribution - Distribution Strategy How to Get the...

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