Distribution Management (MKTG 203) Lecture 01

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Questions and Answers

Which of the following is NOT a shortcoming of the classic view of distribution?

  • Focus on product rather than customer
  • Restricts meaning of distribution to spatial availability
  • Ignores the concept of customer service (correct)
  • Biased toward physical products

The modern view of distribution emphasizes customer service alongside organizational objectives.

True (A)

What is the main role of distribution in achieving customer service?

To deliver place, time, form, and possession utility.

Distribution is the application of management principles to the movement of products from the point of production to the point of __________.

<p>consumption</p> Signup and view all the answers

Match the following utilities with their definitions:

<p>Place utility = Availability of product at a location Time utility = Availability of product at a specific time Form utility = Product alteration to meet customer needs Possession utility = Transfer of ownership from seller to buyer</p> Signup and view all the answers

Which of the following roles is categorized as a managerial distribution job?

<p>Warehouse Manager (B)</p> Signup and view all the answers

Distribution is considered an element of the marketing strategy.

<p>True (A)</p> Signup and view all the answers

Name one impact that actions, attitudes, and sentiments have on customer service.

<p>They can affect customer satisfaction and loyalty.</p> Signup and view all the answers

A __________ manager is responsible for managing the distribution and delivery of a product.

<p>brand</p> Signup and view all the answers

Match the following distribution roles with their responsibilities:

<p>Logistics Coordinator = Oversees transportation of goods Inventory Clerk = Manages stock levels Purchasing Officer = Manages orders and supplies Brand Manager = Oversees marketing and brand strategy</p> Signup and view all the answers

Which of the following best defines the core concept of distribution?

<p>Availability (A)</p> Signup and view all the answers

Distribution only refers to the geographic location of products.

<p>False (B)</p> Signup and view all the answers

What is the seventh principle of marketing that deals with making products accessible to buyers?

<p>Facilitation</p> Signup and view all the answers

The process of moving goods from the point of production to the point of __________ is called distribution.

<p>consumption</p> Signup and view all the answers

Match the dimensions of availability with their descriptions:

<p>Spatial Availability = Availability in a specific market area Form Availability = Availability in different forms and sizes Assortment Availability = Availability of a variety of products in one location Temporal Availability = Availability at required times</p> Signup and view all the answers

Which type of availability requires making a product available in various amounts?

<p>Quantity Availability (D)</p> Signup and view all the answers

Temporal availability refers to the need to make products available in different forms.

<p>False (B)</p> Signup and view all the answers

What are the four elements of the marketing mix that include distribution?

<p>Product, Price, Promotion, Place</p> Signup and view all the answers

Flashcards

Modern Distribution

Delivering customer service, considering organizational goals and limitations.

Distribution Utilities

Place, time, form, and possession utility are achieved through distribution.

Customer Service

All aspects of a customer's experience with an organization.

Distribution Management

Applying management principles to moving products to consumers.

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Classic Distribution Shortcomings

A narrow focus on product and location rather than customers and other considerations.

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Distribution (Core Concept)

Ensuring products are accessible to customers in the right place, form, quantity, assortment, time, and for possession.

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Spatial Availability

Making products available in a specific geographic area.

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Form Availability

Making products available in different forms or sizes.

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Assortment Availability

Offering products as part of a collection or group at a location.

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Temporal Availability

Making products available at the right time for purchase.

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Quantity Availability

Making products available in the desired amounts.

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Possession Availability

Facilitating the purchase and transfer of possession of the product.

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Distribution's Role in Marketing

Distribution is a critical part of a company's marketing strategy, focusing on getting products to customers.

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Distribution Jobs

Distribution roles include managerial (managers), technical (e.g., logistics), administrative (e.g., inventory), and marketing (e.g., brand) roles.

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Distribution & Marketing Plan

Distribution planning and marketing are closely connected. Targeting, positioning, and the marketing mix are crucial elements.

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Distribution Impacts

Distribution is affected by various areas, including production, finance, customer service, and market research.

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Multicollinearity

Multicollinearity in variables can affect distribution plans. It's when variables are too closely related.

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Study Notes

Lecture 01: Distribution and Customer Service

  • Distribution Management (MKTG 203): Focuses on the core concept of distribution as availability
  • Distribution's role in achieving marketing objectives is highlighted alongside other marketing mix elements.
  • Distribution's traditional definition is critically assessed, and an alternative conceptualization is offered, emphasizing customer service.
  • Distribution management is the application of management principles to the movement of products from production to consumption, aiming for optimized customer service and efficiency.
  • Distribution relates to several business areas including production, finance, marketing research and customer service.
  • Distribution affects the marketing mix and plays a direct role in achieving place, time, form, and possession utility.

Synopsis

  • The first presentation offers an overview of Distribution Management.
  • The core concept of distribution is availability.
  • Students will learn about the unique role of distribution to reach marketing goals.
  • Comparison and critical evaluation of the traditional view of distribution is covered.
  • An alternative view of distribution that is customer-focused will be introduced.

Distribution & Facilitation

  • Facilitation is the seventh principle of marketing.
  • It involves making products accessible to the buyer.
  • Distribution and customer service are implemented through modern distribution practices.
  • Distribution is one of the four Ps.

Core Concept

  • Availability is the core concept of distribution.
  • Distribution is one of the four Ps.

4Ps and Purchase Act

  • Product – Compatibility
  • Promotion – Meaning
  • Distribution – Availability
  • Price – Affordability

Dimensions of Availability

  • Dimensions of availability include: spatial, form, temporal, quantity, assortment, and possession.

Six Principles of Availability

  • Spatial Availability: Making products accessible in a specific market area.
  • Form Availability: Making products available in various forms and sizes (e.g., powder, liquid, cans, packs).
  • Assortment Availability: Creating an assortment of products at a single location.
  • Temporal Availability: Making products available at the right time for the customer.
  • Quantity Availability: Providing products in the required quantities.
  • Possession Availability: Facilitating product acquisition for the customer.

Distribution: Classic Definition

  • Distribution is the process of moving goods from production to consumption.
  • Practically, this involves moving goods from the manufacturer to the consumer.

Shortcomings of Classic View

  • Focuses heavily on the product rather than the customer.
  • Limits the meaning of distribution mainly to spatial availability of the product.
  • Predominantly focused on physical products.
  • Ignores broader issues like ownership, risk, and the entire supply chain.

Distribution: Modern View

  • Distribution is the process of delivering customer service within organizational objectives and constraints.

A Customer Service Concept

  • Customer service encompasses the utilities and behaviors customers expect from a business.

Utilities vs. Behaviors

  • Utilities (related to products): Place, time, form, and possession.
  • Behaviors (related to interactions): Actions, attitudes, and sentiments.
  • Distribution has a direct role in achieving place, time, form, and possession utilities.

Distribution Management: Working Definition

  • Distribution is the application of management principles to optimally move products from production to consumption, to maximize customer service and efficiency.

Distribution Spans Key Boundaries

  • Distribution connects production, finance, marketing research, and customer service.

Distribution & the Marketing Plan

  • Distribution is an element of the marketing strategy and plays a vital role.

Multicollinearity and the 4Ps

  • Multicollinearity occurs when variables are highly correlated (e.g., different aspects of the 4Ps).

Distribution Jobs

  • Distribution jobs include managerial roles (e.g., Distribution Manager, Warehouse Manager), technical roles (e.g., Logistics Coordinator), administrative roles (e.g., Inventory Clerk), and marketing roles (e.g., Brand Manager).

Classroom Perspective

  • The perspectives include innovation distribution, existing product introduction into new markets, and expanding distribution of existing product/brands.

(page 19)

  • Customer service is impacted by actions, attitudes and sentiments
  • Distribution is impacted by Finance, Production, Customer Service, and Market Research.

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