PM--hapter14Channel of Distribution(营销原理).pptVIP

Chapter 14: Channels of Distribution Chapter 14Channel of Distribution What is a middleman? A middleman is a business firm that provides services related directly to the sale and/or purchase of a product as it flows from producer to consumer. There are 2 main types of middlemen: 1. Merchant middlemen: take title to the products 2. Agent middlemen: never own the products, but do arrange the transfer of title. How Important Are Middlemen? ?Middlemen may be able to carry out distribution activities better or more cheaply than either producers or consumers. Disintermediation is a practice in which middlemen can be eliminated from channels. “You can eliminate middlemen, but you cannot eliminate the distribution activities. What Is a Distribution Channel? Distribution Channel is a way that a product is moved from a producer to end users or business users. It consists of the set of people and firms involved in the transfer of title to a product. How to design distn channel? 1. Specifying the role of distribution ? the firm’s marketing objectives are reviewed. 2. Selecting the type of channel ? direct or indirect channel? 3. Determine appropriate intensity of distribution ? decide on the number of w/s and r/t to be used (Intensive? Selective? Or Exclusive?) 4. Choose specific channel members ? select those who are willing to distribute the product. Selecting the Type of Channel Direct Distribution is a channel of only producer and final customers. Indirect Distribution is a channel of producer, final customer and at least one level of middlemen. Major Channels of Distribution Distribution of Consumer (tangible) Goods Producer ? consumers Producer ? retailer ? consumers Producer ? wholesaler ? retailer ? consumers Producer ? agent ? retailer ? consumers Producer ? agent ? wholesaler ? retailer ? consumers Major Channels of Distribution Distribution of Business ( tangible ) Goods Producer ? user Producer ? industrial distributor ? user Producer ? indust