MKTG 203 Distribution Management Lecture 01 PDF

MKTG 203 Distribution Management Lecture 01 Distribution and Customer Service 1  2 Synopsis This first presentation provides an overview of Distribution Management. It focuses on the core concept of dist...

MKTG 203 Distribution Management Lecture 01 Distribution and Customer Service 1  2 Synopsis This first presentation provides an overview of Distribution Management. It focuses on the core concept of distribution as “availability” and attempts to help students understand unique role of distribution in achieving marketing objectives alongside the other elements of the marketing mix. Finally it examines the traditional definition of distribution, critically assesses it and offers an alternative conceptualization based on customer service.  3 Distribution & Facilitation Facilitation is the 7th principle of marketing. It deals with making product the available or accessible buyer. It is implemented through the modern practices of distribution and customer service. It is one of the 4Ps  4 Core Concept Availability is the core concept of distribution. Distribution is one of the 4Ps.  5 4Ps and Purchase Act Product Compatibility Promotion Meaning Purchase Act Distribution Availability Price Affordability  6 Dimensions of Availability Availability Spatial Form Temporal Availability Availability Availability Quantity Assortment Possession Availability Availability Availability Availability is much more than “place”!  7 Six Principles of Availability 1.Spatial availability: Need to make a product available in a given market area. 2.Form Availability: Need to make a product available in different forms and sizes e.g. powder, liquid; can, six pack, I litre, ¼ litre. 3.Assortment Availability: Need to make a product available as part of an assortment that customers want a one location. e.g. biscuits, bleach, flour, meat are available at supermarkets etc. 4.Temporal Availability : Need to make a product available at the times required or requested. 5.Quantity Availability: Need to make a product available in the amounts required. 6.Possession Availability: Need to facilitate or make a product available for possession as desired by the buyer.  8 Distribution: Classic Definition Distribution is the process of moving goods from the point of production to the point of consumption. In practical terms, this means moving goods from the manufacturer to the consumer.  9 Shortcomings of Classic View 1. Focuses on product rather than the customer 2. Restricts meaning of distribution to spatial availability of the product 3. Biased toward physical products. 4. Ignores other issues e.g. ownership, risk. 5. Ignores the total supply chain.  10 Distribution: Modern View Distribution is the process of delivering customer service subject to organizational objectives and constraints  11 A Customer Service Concept Customer service is all the utilities and behaviours which a customer expects from an organization in transacting business with it.  12 Utilities vs. Behaviours  Place utility Actions  Time utility Attitudes  Form utility Sentiments  Possession utility Distribution plays a direct role in achieving place, time, form and possession utility.  13 Distribution Management : Working Definition Distribution is the application of management principles to the movement of products from the point of production to the point of consumption in an effort to optimize customer service and economic efficiency. Distribution Spans Key Boundaries Production Finance Distribution Customer Marketing Service Research 14 Distribution & the Marketing Plan MARKETING PLAN MARKETING MARKETING Distribution OBJECTIVES STRATEGY (Place) Targeting Positioning Marketing Mix Distribution is an element of P P P P Marketing Strategy 15  16 Multicollinearity and the 4Ps No Multicollinearity Multicollinearity between Variables B and A; C an D Distribution Jobs 17 MANAGERIAL Distribution Manager / Warehouse Manager /Purchasing Manager TECHNICAL Logistics Coordinator / Freighter / ADMINISTRATIVE Inventory Clerk / Procurement Officer/ Purchasing Officer MARKETING Brand Manager/ Delivery/Merchandizer  18 Classroom Perspective 1. You are the marketing or brand manager of a company attempting to distribute an innovation into its first market. 2. You are the marketing or brand manager of a company attempting to get an existing product into a new market. 3. You are the marketing manager / brand manager of a company attempting to increase distribution of a product/ brand. 1) How does actions, attitudes and sentiments impact on customer service? 2) How can distribution be affected by finance, production, customer service and market research?