Chapter Thirteen.pptVIP

Chapter Thirteen Developing Distribution 13.1 Definition 1.Distribution: the process that goods are distributed from the manufacturer to the end user. Different companies may adopt different distribution services according to their marketing objectives and strategies. Some companies have their own means of distribution, some companies deal directly with the most important customers, but many companies rely on other companies to perform distribution services for them. 2. Marketing channels: sets of interdependent organizations involved in the process of making a product or service available for use or consumption. 13.2 Functions and types of distribution channels Information collecting: gathering and distributing marketing research and intelligence about the environment of planning purpose Promotion: developing and spreading persuasive communications about an offer Contact: direct communication between intermediaries especially retailers and buyers Matching: the ability the intermediaries own to match the demand and supply efficiently and economically. Physical distribution: the transporting and storing of products The risk taking: the risk of the actual transfer of ownership from one organization, carrying the product and receiving payment Financing: acquiring and using funds to cover costs Marketing intermediaries increase efficiency in making products available to target markets, smooth the flows of products to buyers from the place of origin. Intermediaries reduce the number of contacts necessary to complete a transaction. 13.2.2 Factors that influence the construction of channels 1. Producer: whether the producer has the resources to perform the functions of the channel is vital for the channel decision a producer will have to decide to what extent he or she wants to maintain control over how, to whom and at what price a product is sold 2. Customer customer characteristics, buying behavior and buyer needs for product informati