1Distributionstrategy[movinggoodsandservicesfromproducerstobuyers]DecisionssuchaswheretoofferproductsforsaleLogistics[theprocessofphysicallymovinginformation,goodsandservices]●Distributionchannels●Wholesaling●Retailing●Distributionchanneldecisionsandphysicaldistribution●DistributionstrategyDealswiththemarketingactivitiesandinstitutionsinvolvedingettingtherightgoodorservicetothefirm’scustomers.Distributiondecisionsinvolve:modesoftransporation,warehousing,inventorycontrol,orderprocessing,andselectionofmarketingchannelsthataretypicallymadeupofintermediariessuchasretailersandwholesalersmovingaproductfromproducertofinalpurchaser.Distributionchannel,paththroughwhichproductsandlegalownershipofthemflowfromproducertoconsumerorbusinessuser.Physicaldistribution,theactualmovementofproductsfromproducertoconsumersorbusinessusers.Distributionchannels●Directdistributionchannel[whichcarriesgoodsdirectlyfromproducertoconsumerorbusinessuser.]◇MostcommonintheB2Bmarket◇Commonlyfoundinthemarketingofrelativelyexpensive,complexproductsthatmayrequiredemonstrations◇Theinternetmakesdirectdistributionanattractiveoptionforretailcompanies.e.g.Clinique.●DistributionchannelsusingmarketintermediariesMarketingintermediary,abusinessthatmovesgoodsbetweenproducersandconsumersorbusinessusers,inclcudingtwocategoriesofwholesalersandretailers.[performvariousfunctionsthathelpthedistributionchanneloperatesmoothly,suchasbuying,selling,storing,andtransportignproducts;sortingandgrading2bulkyitems;andprovidinginformationtootherchannelmembers]Intermediariesoftenaddsignificantvaluetoaproductasitmovesthroughthedistributionchannel:◇creatingutility[helpensurethatproductsareavailableforsalewhencustomerswanttopurchasethem]◇providingadditionalservices[performsuchimportantservicesastransportingproductstoconvenientlocations]◇reducingcosts[cutthecostsofbuyingandselling,byrepresentingnumerousproducers]Wholesaling[Wholesaler,distributionchannelmemberthatsellsprimarilytoretailers,orotherwholesalers,orbusinessusers]Wholesalingisacrucialpartofthedistributionchannelformanyproducts,particularlyconsumergoodsandbusinesssupplies.●Manuafacturer-ownedwholesalingintermediaries◇salesbranches,stocktheproductsandfillordersfromtheirinventories.◇salesoffice,anofficeforaproducer’ssalespeople.●Independentwholesalingintermediaries◇merchantwholesalers,independentlyownedwholesalingintermediariesthattaketitletothegoodstheyhandle.1)Afull-functionmerchantwholesaler:providesacompleteassortmentofservicesforretailersorindustrialbuyers,suchaswarehousing,shippingandevenfinancing2)Alimited-functionmerchantwholesaler:takeslegaltitletotheproductithandles,butprovidesfewerservicestotheretailerswhichitsellsto.◇agentsandbrokers,whomayormaynottakepossessionofthegoodstheyhandle,buttheynevertaketitle,workingmainlytobringbuyersandsellerstogether.●Retailer-ownedcooperativesandbuyingofficesRetailersbandtogethertoformtheirownwholesalingorganizations.Retailing[Retaler,channelmemberthatsellsgoodsandservicestoindividualsfortheirownuseratherthanforresale.]●Nonstoreretailers◇Direct-responseretailing,reachesprospectivecustomersthruoghcatalogs,telemarketing,andevenmagazine,newspaper,andtelevisionads.◇Internetretailing◇Automaticmerchandising,providesconveniencethroughtheuseofvendingmachines.3◇Directselling,includesdirect-to-consumersalesbyrepresentativesandsalespeople.●Storeretailers[rangeinsizefromtinynewsstandstomultistorydepartmentstoresandmultiacrewarehouse-likeretailers]Thewheelofretailing:newretailersenterthemarketbyofferinglowerpricesmadepossiblethroughreductionsinservice[graduallyaddservicesastheygrowandultimatelybecometargetsfornewretailers].e.g.supermarketsanddiscounthouses●HowretailerscompeteNonstoreretailersfocusonmakingtheshopppingexperienceasconvenientaspossible.Storeretailers,e.g.maximumatmosphereandreadyaccesstoenvironmentallyorientedproductsHowtodevelopacompetitiveretailingstrategy?◇identifyingatargetmarket◇selectingaproductstrategy◇shapingacustomerservicestrategy◇selectingapricingstrategy◇choosingalocation◇buildingapromotionalstrategy◇creatingastoreatmosphereDistributionchanneldecisionsandphysicaldistribution●SelectingdistributionchannelsGeneralconsiderations:◇Productsthatarecomplex,expensive,custom-made,orperishablemovethroughdistributionchannelsinvolvingfewornointermediaries.◇Standardizedproductsoritemswithlowunitvaluesusuallypassthroughrelativelylongdistributionchannels.◇Start-upmanufacturersturntodirectchannelsbecausetheycannotpersuadeintermediariestocarrytheirproducts.◇Competitiveperformanceisanotherkeyconsideration.●Selectingdistributionintensity◇intensivedistribution,involvesplacingafirm’sproductsinnearlyeveryavailableoutlet.◇selectivedistribution,amarket-coveragestrategyinwhichamanufacturerselectsonlyalimitednumberofretailerstodistributeitsproductlines.◇exclusivedistribution,limitsmarketcoveragetoasingleretailerorwholesalerinaspecificgeographicalregion.4●Logisticsandphysicaldistribution◇Supplychain,completesequenceofsuppliersthatcontributetocreatinganddeliveringagoodorservicetobusinessu