ELEMENTS OF DISTRIBUTION

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ELEMENTS OF DISTRIBUTION

• Marketing Management
• Session 9
• November 4, 1998

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COURSE OUTLINE

• Distribution The origins of modern marketing
• Some common myths of distribution
• Managerial aspects of distribution
• Video The Fresh Connection
• Guest speakers ProcterGamble

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MYTH No. 1

• The presence of middlemen increases the cost of
  the product to the consumer.

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MYTH No. 2

• Direct channels of distribution should be used
  for highly perishable goods.

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MIDDLEMEN PROVIDE

• Form utility
• Place utility
• Time utility

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IMPORTANT FACTORS OF DISTRIBUTION

• Direct vs. indirect channels
• Market coverage
• Type of middlemen
• Channel organization

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IMPORTANCE OF DISTRIBUTION

• Long-term decision
• Costly decision
• Involving various departments
• Involving various firms
• Least controlable

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TYPE OF CHANNELS

• Direct channels conditions?
• Product category
• Customers
• Positioning,
• Indirect channels conditions?
• Product category
• Customers
• Positioning

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MARKET COVERAGE

• Intensive distribution (mass distribution)
• Selective distribution
• Exclusive distribution

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OTHER ASPECTS

• Logistics
• Transportation
• Warehousing
• Retailing
• Retailer part of the distribution channel
• As marketing company

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TYPE OF MIDDLEMEN

• Wholesalers vs. retailers
• Merchants vs. intermediary
• Services provided

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NEXT CLASS

• 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