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Class Course Lecture

3.0 Promotional and Distribution Strategy 3.3 Understand Distribution The movement of goods and services from the source through a distribution channel, right up to the final customer, consumer, or user, and the movement of payment in the opposite direction, right up to the original producer or supplier. Distribution is the process of moving a product from its manufacturing source to its customers. In computer software, distribution is the phase that follows packaging. The package will be on some distribution medium, such as compact disc, or may be simply located on a server where customers can download it electronically. The sale of a large amount of stock by a single entity over a period of time rather than all at once, to avoid adversely affecting its market price

3.3.1 Describe the role of Distribution of Marketing The primary function of a distribution channel is to bridge the gap between production and consumption. The distribution channel is also responsible for promoting the product. Awareness regarding products and other offers should be created among the consumers. Creating contacts or prospective buyers and maintaining liaison with existing ones. Understanding the customer's needs and adjusting the offer accordingly. Negotiate price and other offers related to the product as per the customer demand.

Channels of Distribution
A sequence of marketing organizations that directs a product from the producer to the ultimate user. Begin with the producer and end with either the consumer or the business user. A marketing organization that link a producer and user within a marketing channel is called middleman. There are 4 most commonly used channel.

Channels of Distribution
Producer to Consumer
The direct channel ,include no marketing intermediaries. Service and consumer good are distributed through direct channel. Better control the quality and price of their products. Example : Dell Computer,Mary Kay Cosmetics and Avon Product A Retailer is a Middle Man that buys from producer and sell to consumer. Producer sell directly to retailers when retailers can buy in large quantity. Which additional handling would increase selling costs.

Producer to Retailer to Cunsumer

Channels of Distribution
Producer to Wholesaler to Retailer to Consumer Producer to Agent to Wholesaler to Retailer to Consumer
Traditional Channel, because many goods pass through wholesalers to retailers. Wholesaler is middleman that sell product to other firms. Example retailer, industrial users, or other wholesalers. Channel use when its product carried by so many retailers Example : Wrigleys gum

Producer use agents to reach wholesalers. Agent is middlemen who do not take title to product and commision is paid by producers. Inexpensive product and frequently purchased items. This channel is also used for highly seasonal product and producers that do not have their own sales forces.

Role of Distribution Channel

Physical distribution of products through the channel To provide a link between product and comsumer. A marketing channel performs the work of moving goods from producers to consumers.

Information Gathering
Middlemen collect information about demand, competition, etc., from consumers and pass on to manufacturers. They also provide information to consumers about new products, changes in design, style, prices, etc., of existing products

Promotion
Marketing intermediaries attract customers and persuade them to buy goods and services. These intermediaries undertake sales promotion activities through media and personal contacts.

Role of Distribution Channel

Negotiation of Price Financing: Risk taking

Intermediaries or middlemen negotiate prices and other terms and conditions between buyer and seller. No sale can take place without an agreement on prices and other terms and conditions.

Intermediaries provide financial, assistances at different stages of the marketing channel. They buy goods in cash from producers and sell them to consumers on credit.

Intermediaries assume most of the risks involved in the distribution of goods. They relieve producers from these risks and enable them to concentrate on production.

E-business E-business represents only a fraction of worldwide business the fastest growing sectors and provides entrepreneurs with excellent opportunities to enter the market. The internet provides consumers with an increasing amount of ways to interact with businesses and has made buying and selling more competitive worldwide. The rate of globalisation has been significantly impacted by the internet, making it easier for people and organisations separated by distance to communicate and interact with each other. using the internet to send emails between staff or communicate with suppliers Almost all businesses are now an e-business to at least some extent, however, many have taken a step further and are involved with e-commerce

E-Commerce
refers to economic activity that occurs online. includes all types of business activity, such as retail shopping, banking, investing and rentals. Small businesses can benefit from e-commerce by providing a website E-commerce is a subset of e-business and can make up the entirety of the business or be used alongside existing, traditional business models. uses the internet to market, sell and conduct transactions with customers without face to face contact between the buyer and seller Electronic commerce , or e-commerce, refers to economic activity that occurs online. E-commerce includes all types of business activity, such as retail shopping, banking, investing and rentals.

E-Marketing

It generates the strategy that underlies sales techniques, business communication, and business development. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves. Marketing plays a vital role in a business, the success of the company can be achieved through effective Marketing. It is important that Sales and Marketing team go hand in hand to achieve Sales goals. A marketer should know how to discover and develop marketing ideas for their business.

TREND AND ISSUES

E-MARKETING.
It also consists creative and technical aspect in the internet such as design, development, advertising, and sell. Use internet to help sell product and services. Consists of all activities and processes with the purpose of finding,atracting,winning and retaining customers. It makes nearest to the customer regardless of the type and size of business. Creating a strategy that helps business deliver a correct information about product / services to the customer

Effective e-marketing objectives.

Sell using the internet to sell product/services

Serve using the internet to serve customer.

Speak using the internet to communicate with customer

Sizzle using the internet to build brand identity.

Must consider when make objective.

Time specific establish specified time frames. Specific specify what is to be achieved. Action-oriented state which actions need to be taken and who will take them. Measureable - its refer key performance indicators such as number, percentage and dollars, etc. Realistic achievable with the resources available.

MOBILE COMMERCE

Deliver product/service using electronic commerce to customer by hand, or anywhere via wireless technology. Also refer retail-outlet in customer pocket.

PRODUCTS /SERVICES AVAILABLE.

Mobile marketing and advertising marketing sent to mobile device Mobile vouchers,coupons and loyalty cards its also refer ticket that given by sellers. Mobile money transfer use mobile device to send and receive money.

BENEFITS TO BOTH BUYERS AND SELLERS

SELLERS

Cost-effective approach helps business reach target customer at a much lower cost compare to the traditional market Wider prospect reach allows to find new market with only a small invesment. Increased interactivity allows to create interactive campaigns using music,graphics, and video to make customer interest.

BUYERS

Convenient can shop 24 hours without going the store physically.

Interactive & immediate can interact with seller on the website and can order product/ services on the spot.