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  • Dimensions of Marketing Strategy:Distribution Strategy

    Pages 402-408 in your textbook

    Alicia Savino

  • What To Expect

    Marketing Channels What paths do products take to get to


    Intensity of Market Coverage How widely do you distribute products?

    Physical Distribution What activities move products to customers?

  • Marketing Channels

    A Marketing channel is the middleman that moves products from the producer to the consumer.

    Retailers- Buy products from manufacturers and sell to consumers for household use, not for resale.

    Wholesalers- Buy products from producers or other wholesalers to sell to retailers.

  • Supply Chain Management

    Long term partnerships among marketing channel members who work together to reduce costs and make decisions to conveniently move products from supplier to manufacturer to wholesaler to retailer to consumer to satisfy customers

    Creates alliances between channel members

  • Channels for Consumer Products Channel A: Producer to Consumer

    Farmers selling fruit to consumer

    Channel B: Producer to retailer to consumer

    College textbooks, automobiles

    Channel C: Producer, wholesaler, retailer, to consumer

    Televisions, clocks, watches

    Channel D:Producer, agent, wholesaler, retailer, consumer

    Convenience products, Candy

  • Activity

  • Channels for Business ProductsMore than half of business products are sold through direct marketing channelsBusiness customers like to communicate directly with producers to gain technical assistance and assurance

  • Intensity of Market Coverage

    How widely to distribute a product-how many and which outlets should carry the product?

    Intrinsic distribution Makes product available in as many outlets as possible

    Selective distribution Small number of outlets used to expose product

    Exclusive distribution Gives one outlet the sole right to sell the product in a

    geographic area

  • Physical Distribution

    Physical Distribution includes all activities relating to moving products to customers.

    Transportation Railways: least expensive for heavy commodities,

    food, raw materials, and coals Motor vehicles: greater flexibility to reach locations;

    door-to-door service Inland Waterways: agricultural and industrial products Pipelines: petroleum, natural gas, wood chips,

    chemicals Airways: speed and high dependability, most

    expensive means of transportation

  • Warehousing

    The design and operation of how facilities receive, store, and ship products

    Companies often own and operate their own, some rent

    Important so products are available for shipment to different geographic locations

    Materials Handling

    Physical handling of products in warehousing and transportation

    Efficiency improves customer service

  • Importance and Homework

    Distribution Strategy can make or break your product and/or business.

    Use your knowledge from today to complete the assignment being handed

    out by the beginning of next class period.

    Have a great day!