MKTG1001: Marketing Mix: Distribution
● Major logistics functions:
● The core logistics functions integral to supply chains include:
● Warehousing = Decisions related to the number, type, and location of warehouses.
● Inventory Management = Strategies concerning the optimal levels of inventory,
including just-in-time (JIT) approaches.
● Transportation = Various modes used such as truck, rail, sea, air, and internet.
● Logistics Information Management = Systems and technologies employed for effective
logistics oversight.
● Distribution channels:
● Physical distribution comprises activities that transfer finished products from manufacturers to
consumers. A distribution channel is a series of firms or individuals facilitating the movement of a
product to its final buyer.
● Types of distribution channels:
● Direct Channels = Involve no intermediaries, allowing for a direct connection between producers
and consumers.
● Indirect Channels = Include one or more intermediaries that facilitate product distribution.
● Channel members and value addition:
● Channel members enhance the value of a product through:
● Matching = Providing products in a timely manner aligned with consumer demand.
● Breaking Bulk = Purchasing in large quantities to sell smaller units to various
customers.
● Creating Assortments = Offering a variety of products in one location for consumer
convenience.
● Facilitating Purchases = Streamlining the purchasing process for customers.
● Risk Taking = Assuming the risks associated with unsold inventory.
● Communication and Transaction = Facilitating promotional activities and customer
communication.
● Transportation and Storage = Managing the logistics of moving products and storing
them until needed.
Distribution channel decisions:
● Types of channel structures:
● When selecting a distribution channel, several strategies can be utilised:
● Intensive Distribution = Involves as many retailers as possible.
● Selective Distribution = Focuses on key retailers that amplify brand image.
● Exclusive Distribution = Entrusts limited retailers with exclusive rights to sell a product
in a specific area.
● Considerations for channel selection:
● Important factors influencing channel decisions include:
● Customers = Understanding customer preferences and how to effectively reach them.
● Competition = Analysing competitors' channel strategies to establish a competitive edge.
● Producer Capabilities = Assessing product nature and organisational resources.
● Distribution intensity:
● Distribution intensity signifies the degree of a product's availability and can be classified as:
● Intensive = Broad coverage across numerous retailers.
● Selective = Focused distribution through key retailers.
● Exclusive = Limited access, enhancing brand exclusivity.
Retailing and distribution methods:o
● Innovative distribution methods:
● Major logistics functions:
● The core logistics functions integral to supply chains include:
● Warehousing = Decisions related to the number, type, and location of warehouses.
● Inventory Management = Strategies concerning the optimal levels of inventory,
including just-in-time (JIT) approaches.
● Transportation = Various modes used such as truck, rail, sea, air, and internet.
● Logistics Information Management = Systems and technologies employed for effective
logistics oversight.
● Distribution channels:
● Physical distribution comprises activities that transfer finished products from manufacturers to
consumers. A distribution channel is a series of firms or individuals facilitating the movement of a
product to its final buyer.
● Types of distribution channels:
● Direct Channels = Involve no intermediaries, allowing for a direct connection between producers
and consumers.
● Indirect Channels = Include one or more intermediaries that facilitate product distribution.
● Channel members and value addition:
● Channel members enhance the value of a product through:
● Matching = Providing products in a timely manner aligned with consumer demand.
● Breaking Bulk = Purchasing in large quantities to sell smaller units to various
customers.
● Creating Assortments = Offering a variety of products in one location for consumer
convenience.
● Facilitating Purchases = Streamlining the purchasing process for customers.
● Risk Taking = Assuming the risks associated with unsold inventory.
● Communication and Transaction = Facilitating promotional activities and customer
communication.
● Transportation and Storage = Managing the logistics of moving products and storing
them until needed.
Distribution channel decisions:
● Types of channel structures:
● When selecting a distribution channel, several strategies can be utilised:
● Intensive Distribution = Involves as many retailers as possible.
● Selective Distribution = Focuses on key retailers that amplify brand image.
● Exclusive Distribution = Entrusts limited retailers with exclusive rights to sell a product
in a specific area.
● Considerations for channel selection:
● Important factors influencing channel decisions include:
● Customers = Understanding customer preferences and how to effectively reach them.
● Competition = Analysing competitors' channel strategies to establish a competitive edge.
● Producer Capabilities = Assessing product nature and organisational resources.
● Distribution intensity:
● Distribution intensity signifies the degree of a product's availability and can be classified as:
● Intensive = Broad coverage across numerous retailers.
● Selective = Focused distribution through key retailers.
● Exclusive = Limited access, enhancing brand exclusivity.
Retailing and distribution methods:o
● Innovative distribution methods:
