Chapter10 - Chapter 10 Place: makes goods/services...

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Chapter 10 Place: makes goods/services available in the right quantities and locations Channel of distribution: Series of firms participating in the flow of products from producer to final user. when products must be stored, and include one+ more middlemen. Key strategy decision areas in distribution (place) : 1. type of channel of distribution. 2. type of middlemen/facilitators. 3. type of physical distribution facilities. 4. degree of market exposure desired. Choice of channels, direct-to-customer, or indirect—involving middlemen. Indirect : Decide on types of middlemen, how many of them, and how to manage them. The type of channel - related to the level of customer service required . Physical distribution activities must be developed and managed to achieve the distribution objectives. Customers may have different needs with respect to time, place, and possession as they make different purchases. Customers have different levels of urgency, convenience, and product information needs. The place system is not automatic. 1+ place arrangement may be needed to reach different target markets . Place decisions have long-run effects - usually harder to change than other parts of the mix (product, price, promotion). may focus on the location of retail stores, wholesale facilities; may focus on the selection and use of middlemen and facilitators; can be aided by knowing about the product classes. Other firms in the channel may carry out much of the place strategy. Outlets typically involve time and contractual arrangements . Direct Channel : Direct contact with customers helps a company keep abreast of market changes. Often preferred way of handling place decisions. Why a firm might want to use direct distribution.
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Chapter10 - Chapter 10 Place: makes goods/services...

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