20071010 Distribution

20071010 Distribution - BUAD307 10/10/07 Distribution...

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BUAD307 10/10/07 Distribution Definition o Process of making it convenient for market targets to find, buy, and use your product (to achieve the goals of your marketing plan) Channel Options o Way everything gets to where it has to go o Similar to waterways, veins, and arteries, products are distributed through channels Direct to end buyer Direct marketing o Internet, mail order, HSN, phone sales o No face-to-face contact between buyer and seller Selling via sales force o Face-to-face contact between buyer and seller Distributor and dealer Manufacturer distributor dealer buyer Two middle people Big dealer Manufacturer big dealer buyer Saves money Ex: walmart, target, home depot o Why 1 or 2 middle people? CONVENIENCE Levels, Types of companies, and their added value function o Manufacturers – add value by making the product o Distributors – add value by warehousing the product for the levels above (manuf) and below (dealers)
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20071010 Distribution - BUAD307 10/10/07 Distribution...

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