Distribution and Retailing

Distribution Channel (PLACE)

Manufacturer

Retailer

Business Structure
Distributor
Consumers

Channel Intermediaries
Retailers
Merchant Wholesalers
Take Title to Goods

Take Title to Goods

Agents and Brokers

Do NOT Take Title to Goods

Types of Marketing Channels

Channels for Consumer Products
Producer

Direct Channel
Retailers

Consumers

Producer

Consumers

TRADITIONAL
Producer Wholesalers Retailers Consumers

Producer

Agents or Brokers

Wholesalers

Retailers

Consumers

Types of Marketing Channels

Channels for Industrial Products
Business/ Organizational Buyer Industrial Distributor Business/ Organizational Buyer Business/ Organizational Buyer Industrial Distributor Business/ Organizational Buyer

Producer

Producer

Producer

Agents

Producer

Agents

CHANNEL STRATEGY DECISIONS Market exposure optimal

Selection of a Marketing Channel

Intensity of Distribution

Management of Relationships

Intensity of Market Coverage

Intensive Distribution

Sell it where they buy it!

Intensity of Market Coverage

Selective Distribution Limited #; Enables price control

Sell it where it sells best!

Intensity of Market Coverage

Exclusive Distribution Extreme case of Selective Distribution. UNIQUE Positioning.

Channel Conflicts (Inequitable Relationships)

Coca-Cola Pepsi-Cola

Coca-Cola bottler

Pepsi-Cola bottler

Easy Day

Vishal Mega mart

Manufacturer

Vertical
Distributor Retailer

Consumers

Horizontal

Distributor Retailer Retailer Retailer Retailer