Delivering Value

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Place

How to place the optimum amount of goods/services before the maximum number of your target market at times and locations they want them

Vital element in creating customer value/satisfaction

Many variables influence perceptions of distribution quality, such as time in transit and market coverage

Distribution Channel Managment

Maximize ROI by knowing where costs are being spent and profits being made in a channel

Coverage is bout maximizing the amount of contact and benefits for the customer in terms of product availability. Many lotions, means large coverage, means large consumer base

Control refers to achieving optimum distribution costs without losing decision making authority

Channel Structure

Direct

Indirect

Hybrid

Types of Intermediaries

Agents or brokers

Merchant

Distributors/Dealers

Franchise

Wholesalers

Retailers

Intensity of Channel Coverage

Intensive - Distribution through every reasonable outlet in the market

Selective - Distribution through multiple, but not all, reasonable outlets in the market

Exclusive - Distribution from a single wholesaling intermediary/retailer

Logistics Management

Refers to activities which relate to the flow of products from the manufacturer to the customer

Coordination of the activities of the entire distribution channel

Addresses the moving of products from factory to customer and materials to factory

Retailing

All activities directly related to the sale of products to the ultimate end consumer for personal and non-business use.

Value consists of Access, Search, Possession, and Transaction

Retailer Types

Department Stores

Discount Stores

Convenience Stores

Limited Line Stores

Specialty Stores

Category-killers

Supermarket

Superstores

Retailing Store Presence

Store Presence - Physical location is seen to be advantageous. Uniqueness through staff and experience

Non-store Presence - Activities resulting in transactions that occur away from fixed store locations e.g. telemarketing and internet retailing

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