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DISTRIBUTIONOMPLETEMBASTUDYMATERIALS
DISTRIBUTION DISTRIBUTION DISTRIBUTION / PLACE – ISSUES At the end of this module the learning outcomes are: What are the roles and functions of channel partners? Various types of channel levels. What are considerations in channel design decisions ? DISTRIBUTION / PLACE – ISSUES SUGGESTED READINGS Marketing management by Kotler, Millineium edition, chapter 16. Marketing management by Ramaswami and Namkumari, chapter 21. ? DISTRIBUTION / PLACE – ISSUES DISTRIBUTION ISSUES – PLACE Why do you use Dealers Stockist Distributors etc… How does the product becomes available to customer ? DISTRIBUTION / PLACE – ISSUES Marketing channels Set of interdependent organizations involved in the process of making a product for use or consumption Example Dealers Distributors Retailers Agent DISTRIBUTION / PLACE – ISSUES Marketing channel Hindustan lever – Lifebuoy Goes to villages 5 lakhs villages in India Can Lever set up 5 lakhs offices? Do they have such resources? No Probably no company in this world has Need of partner Help you to reach your target customers Role of channel partner required. ? DISTRIBUTION / PLACE – ISSUES CHANNEL FUNCTIONS ROLES Information gathering / feedback Potential / current customers Competitors Used by companies to alter marketing mix Can take actions to counter competition DISTRIBUTION / PLACE – ISSUES 2. Supply products in assortments Example – Pepsi Pepsi supplies in case of 24 bottles Crate Suppose consumer requires 1 Pepsi Shopkeeper Provides 1 Pepsi Breaks products in assortments DISTRIBUTION / PLACE – ISSUES 3. Risk sharing Channel members Buy goods from producers If the goods do not sell? Who bears the risk Channel partner Risk sharing is critical DISTRIBUTION / PLACE – ISSUES 4. Helps merchandise the product Merchandising Attractive display Increases Awareness Interest Music world Wide display of music Can try Attractive display Décor Invested in space, display Sales personnel, warehouse, trucks DISTRIBUTION / PLACE – ISSUE
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