Distribution.ppt.pptx

Distribution BMI3C Success Criteria I will be successful when I can …………. ■I can compare a variety of distribution strategies and the logistics associated with them CHANNELS OF DISTRIBUTION ■All businesses need to distribute their product either ■to a place where a consumer can find it ■OR ■di...

Distribution BMI3C Success Criteria I will be successful when I can …………. ■I can compare a variety of distribution strategies and the logistics associated with them CHANNELS OF DISTRIBUTION ■All businesses need to distribute their product either ■to a place where a consumer can find it ■OR ■directly to the consumer ■IF the consumer has the product, the marketer has been SUCCESSFUL Components of Distribution ■There are two components to distribution ■selecting, developing, and managing distribution channels ■physically distributing goods through those channels Channels of distribution ■…are the paths of ownership that goods follow as they pass from the producer to the consumer ■Channel selection ■deciding what path a product should take to reach the target consumer ■Logistics ■arranging for the product to move efficiently, safely, cheaply, and quickly Possible Channels Distribution Policies ■Intensive ■Selective ■Exclusive ■Integrated Intensive Distribution ■ ■ Used if the product is sold everywhere Ex: Coca-cola is found in schools, bus stations, parks, malls, arenas, cafeterias, grocery stores, drugstores, retail outlets, planes, trains, movie theatres, restaurants, etc. Selective Distribution ■ ■ ■ Try to control the distribution of their product May seek to avoid conflicts in positioning/brand image If a retailer orders a manufacturer’s product, by law the manufacturer cannot refuse to sell the product to the store without a valid reason Exclusive Distribution ■ ■ ■ The manufacturer has made a deal with one or two retailers in a particular area to sell the manufacturer’s product exclusively This allows the product to have a prestige image and allows the manufacturer to dictate some of the retail strategies. Ex: High fashion clothing, famous-name watches, luxury giftware Integrated Distribution ■ ■ In this case a manufacturer, distributor, or retailer owns both distribution outlets and manufacturing facilities for a product Ex: IKEA, Lee Valley tools – own and operate their own manufacturing & retail stores Classwork ■Compete Activity – Floor Mart which has been posted on the Google Classroom