Podcast
Questions and Answers
What are the four Ps in the marketing mix?
What are the four Ps in the marketing mix?
Product, Promotion, Place, Price
What is a marketing channel?
What is a marketing channel?
An organized system of marketing institutions through which products, resources, information, funds, and/or product ownership flow.
Which of the following is NOT a key aspect of logistics management?
Which of the following is NOT a key aspect of logistics management?
- Good communications throughout the distribution channel
- High costs without efficiency (correct)
- Suitable transport
- Suitable storage facilities
The right product at the right place at the right time is essential for a successful marketing strategy.
The right product at the right place at the right time is essential for a successful marketing strategy.
A network of businesses and organisations through which goods pass to get to their final ______ is known as a supply chain.
A network of businesses and organisations through which goods pass to get to their final ______ is known as a supply chain.
Which of the following can be considered as part of the supply chain composition?
Which of the following can be considered as part of the supply chain composition?
What challenges can arise in forming a reliable distribution channel?
What challenges can arise in forming a reliable distribution channel?
What does the term 'Channel Length' refer to?
What does the term 'Channel Length' refer to?
Match the following marketing channel functions with their descriptions:
Match the following marketing channel functions with their descriptions:
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Study Notes
Importance of Distribution Decisions
- Distribution decision can make or break a product offering
- Inefficient distribution negatively impacts a product’s perceived value
- Efficient distribution delivers a competitive advantage
- Channels consist of businesses and organizations through which goods flow from production to the final consumer
Supply Chain Components
- Sellers/Suppliers: Provide the raw materials or components
- Manufacturers: Transform raw materials into finished products
- Resellers: Purchase finished goods to resell to other businesses or consumers (e.g. wholesalers, retailers)
- Facilitators/Intermediaries: Support the flow of goods (e.g. logistics, agents, distributors)
- Buyers/Customers: The end users of the product
Key Considerations for Distribution Decisions
- Internal Determinants:
- Cost of channel management
- Desired level of control over distribution
- External Determinants:
- Customer characteristics and needs
- Product type and complexity
- Demand levels in target market
- Competitive landscape
- Legal regulations and local practices
Importance of Logistics Management
- Ensures product availability, quality, and cost-effectiveness
- Key aspects:
- Suitable storage facilities
- Appropriate inventory levels
- Efficient communication throughout the channel
- Effective transportation
- Protective packaging
- Risk mitigation (e.g. security)
- Consideration of consumer purchase preferences (location, format)
Marketing Channel Functions
- Contact Efficiency: Streamlining connections between producers and consumers
- Channel Specific Functions:
- Sorting goods
- Bulk-breaking (dividing large quantities)
- Inventory management
- Providing convenient locations for purchase
- Delivering customer service
Channel Structure: Length
- Zero Level Channel: Direct from producer to consumer (e.g., farmer's market)
- Two Level Channel: Product moves through a wholesaler or market before reaching the final consumer (e.g., farm to restaurant)
- Multiple Level Channels: Involve numerous intermediaries between production and consumption
- Multichannel Distribution: Utilizes multiple distribution channels simultaneously to reach different customer segments
Channel Structure: Breadth
- Exclusive Distribution: Limited number of outlets or retailers
- Selective Distribution: A moderate number of retailers are chosen
- Intensive Distribution: Wide availability across numerous outlets
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