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Distribution Strategy
Distribution Strategy
Distribution Channel
- Is a network of firms that are interconnected in
their quest to provide sellers a means of infusing
the marketplace with their goods, and buyers a
means of purchasing those goods, doing it all as
efficiently and profitably as possible.
Steps in Specifying the Role of the Distributors
Designing the Selecting the Type of Marketing Channel
Determining the Intensity of Distribution
Channel of Selecting the Distribution Members
Distribution
1. Distributing Consumer Goods
a. Producer to Consumer
b. Producer to Distributors then Consumer
Major c.
d.
Producer to Distributor to Retailer and then the Consumer
Producer to Agent Distributor to Retailer and Eventually the
Consumer
Distribution b.
c.
Producer to Industrial Distributors then to Users
Producer to Agent then the Consumers
d. Producer to Agent to Industrial Distributor and then the
Consumers
3. Distribution of Services
a. Producer to the Consumers
b. Producer to Agent then Customers
1. Market Consideration
The type of Product
Factors
a.
Distribution
1. Personal Selling
Promotional 2.
3.
Advertising
Sales Promotion
Methods 4.
5.
Public Relation
Publicity
Connected chain of all business
Supply Chain entity, both internal and external to
the Company
Intensity of Distribution
- A function of consumer convenience in
access, information search
Extensiveness of Distribution
- Related to the brand’s life cycle or the
company’s maturity in the marketplace.
Push
Push vs Pull Strategies
Manufacturer HOW TO PUSH?
-Advertise to partners (and consumers) - Price Discounts - Incentives for sales force
Wholesaler - Distribute more selectively - Quantity Discounts - Financing
- Employ sales force - Allowances for Marketing Activities
Retailer - Usually more complicated selling, more expensive stuff
HOW TO PULL?
Consumer
- Advertise to Consumers - Quantity Discount - Upgrades
Pull - Distribute Widely - Larger Package - Coupons
- No sales force - Inexpensive Trial - Rebates
- Usually selling small simple stuff - Free Sample - Financing
- Price discount - Bundled Product Sample - Loyalty Points