distribution channel structure
TRANSCRIPT
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DISTRIBUTION
CHANNEL
STRUCTURE: AN
OVERVIEW OF
DETERMINANTS
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Introduction
Distribution problem has an enormousimportance in the marketing literatureand managerial contexts today.
Stern and Reve (198! said" channeltheory is divided into t#o orientations$ aneconomic approach and other behavioral. %irst one analy&es the e'ciency o the
channel
)he second one is sociological oriented
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Introduction (contd.!
Structure o channels re*uires a
set o strategic decisions)he appropriate intermediary
Distribution intensity)ype o intermediary
)he coverage o the market)he kind o distribution (direct or
indirect!
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)he channel design issue
+hannel is not easy selected.
+onstraints,)he availability o good middlemen.
)raditional channel patterns.
-roduct characteristics.
+ompany nances. +ompetitive strategies.
+ustomer dispersion *uestion.
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)he channel design issue(+ontd.!
+hoice o a channel , considerable
reedom o action in matters omarketing policy.
+hannel choice is a cost / nancialdecision" and has control aspects o
channels and their adaptability.+urrent channels literature can0t
explain channel structure came to beand ho# it #ill change over time.
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)he uestion is 2
%irms are able to choose or only adapt in
a given channel structure3 4hat actorsbeneath it3
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%actors Determining DistributionStructure
)he channel varies rom direct toindirect based in the ollo#ingactors$
Si&e o the rm.
Si&e o average order.
)echnical,purchase complexity.Stage in the product lie cycle.
Degree o standardi&ation.
-urchase re*uency.
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Di5erent distribution intensity inthe same category o products
uality.
%ocus or a brand.coordination e5orts.
Inverse relationship.
Support programs.
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In6uencing actors o achannel structure.
+onsumer.
7arket.7arketing mix.
)he lie cycle o a product.
)he number o products produced.
)he pricing actor.
)he promotion strategy.
)he mass media.
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%actors DeterminingDistribution Structure
uying ehavior
)ypes o oods
-roduct +haracteristics
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%actors Determining IndustrialDistribution
eographic concentration
Intensity o competition
%re*uency o purchase
:vailability
-roduct Di5erentiation
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)he rame#ork analysis +onsumer ;abits
-roduct +haracteristics
7arket %actors
+ompany %actors
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+onclusionDistribution Intensity has received little attention bymarketing researchers lately. :ter a literature revie##e built a rame#ork #ith several items to betested by empirical studies.
%urther research must be set to accomplish moreunderstanding about channel design. 4e also kno##hat actors determine a given channel structure.