ABM 8 - MArketing Strategy

DEVELOPING THE MARKETING MIX

Group 7
Did you know?
DISTRIBUTION (PLACE)

Distribution aims to make products or service

available to its target market consistent with their
purchasing pattern.
It can substantially improve revenue and profit,
without much change in the other aspects of the
marketing mix.
Distribution mix
What is it?

It is a made decision that includes

Coverage whether to have mass coverage ,
selective coverage, and exclusive
coverage

A product has placement when it is

Placement carried in a store it wants. Placement
objectives ensures the customers
convenience.
Distribution mix
What is it?

It is Critical for the stores to have the

Volume right level of inventory. The store
should not be 'out of stock' and
'overloaded'

A right way of putting the product on

Display display can make a higher probability
that consumers will choose the brand
over the competition.
Distribution mix
What is it?
Right resale prices means to have a
healthy competition among dealers
Resale Pricing consistent with the pricing intent of
the principal. Price war should be
avoided.

A good will is having a best

Goodwill relationship between a supplier and
his channel members. It creates "win-
win" situation
Distribution (PLACE)

For products not distributed through retail stores, the

distribution mix may be different and may need to be revised to
conform to their specialized needs.
Distribution Channel

distribution channel performs the work of moving products

from manufacturers to final consumers or business users.
A good distribution channel shortens the time, place and
possession gaps between the manufacturers and
consumers, and provides convenience to consumers.
 Manufacturer

Distributor

Wholesaler Jobbers

Retailer

End Users
Distributors

Distributors are appointed to perform the distribution

function for manufacturers in making their products
available.
They may cover an entire country on an exclusive
distributor basis or may be appointed to do the distribution
function within a defined territory or defined store type.
Distributors may sell to wholesalers or retailers or may
even go directly to consumers
 Wholesaling

Wholesaling is the activity of persons or organizations

that sell to those who buy for resale (like retailers) or
business use (like industrial, institutional, and
commercial users).
This makes manufacturers more efficient.
Retailing
Retailing is an activity involving the sale of products or
services directly to final consumers

Examples of store-based retailing:

Clothes store like Uniqlo, Zara, and Bench
Convenience Store like 7/11, Ministop, and HBC
Sports shop like Toby's, RUNNR, and Planet Sport
Retailing
The presence of multinational retailers signaled a change in the distribution set-
up of products sold through retail stores.

Major retailers now charge a Listing Fee.

Other retailers have a policy of carrying only the top 3 brands in every
category. thus maximizing revenues per square inch of limited space
available, while allowing them to carry other categories to maximize
revenues.
Headquarters of multinational retailers are increasingly expected to
negotiate for standard world prices of the same item from muftinational
manufacturers.
Franchising

Accelerated method to expand distribution coverage is through Franchising

In franchising, a franchise fee is paid to the franchise

owner in exchange of an established brand name, a
proven system of operation, training and other
infrastructure support. The rule of thumb is to have at
least 100 000 potential qualfied customers for every
franchise.
Direct selling

In our homeland, direct selling has gone over 3 dozen

members of the Direct Selling Association of the
Philippines (DSAP).

Ex.
AVON
Nu Skin
Tupperware
The Internet
E-business has been the buzzword since the 1900's. No
longer are companies limited to sell products through
stores or through direct sales.

Ex.
Amazon, this generated huge interest, especially
for smaller firs to use the internet as a legitimate
and principal distribution channel.

Unionbank, and BPI, and other banks offer banking

via the internet giving utmost 24/7 convenience to
the depositors.
Home Delivery
Home delivery offers a huge potential influenced
by more women working. lack of household maids,
traffic and parking problems, as well as the
consumer psyche of rewarding themselves for a
hard day's work

The process of home delivery involves appointing a

centralized call center operator who is tasked to
take or suggest orders as well as send these orders
to the branch nearest the customer.
 Diagnostic Distribution

We use the term Diagnostic Distribution to mean

the proper matching of distribution channels to the
selling process.

Marketers, for instance, may combine different

distribution channels to achieve desired sales,
profit, market penetration and market shares
objectives.
Selling Cycle Distribution
method
Prospecting e-mail

Qualifying Sales Telemarketing

Approach Direct Selling

Sales Probing

Sales Presentation

Handling Objections
Demonstration

closing Retailing

After-sales Service Independent Service

Center
 Evaluating Distribution Channels

Marketers must be careful in choosing their

distribution system, as each channel will provide
different levels of cost and sales volume.

In evaluating alternative distribution channels, the

3c's of distribution must be considered: Cost-
efficiency, control, and Channel modification
A. Cost-efficiency

It is important to estimate the long-term impact of having

one's own sales force versus appointing a distributor.
Once sales volume increases to an economic level,
having one's own sales force may or may not be more
cost-efficient. However, a sudden shift from distributor
to an in-house sales force after a distributor has helped a
company attain the economical volume leaves a "bad
taste in the mouth" and is inconsistent with the Filipino
value of "utang-na-loob".
B. Control

As distributors are not the company's employees, they

may have different priorities.

Profit may be their main objective while the firm's

objective may be market penetration and market shares.
 B. Channel Modification

As the marketplace is constantly changing, being flexible and able

to modify distribution may be needed.
ex.
The aggressive marketing of Sensation and Trust brands increased
the acceptability and the market of condoms. They need not be
limited to drugstores but may include supermarkets, convenience
stores, personal care stores, and vending machines as well.

Other changes in the consumer purchasing pattern such as when

the product matures, when new competition arises, and when
innovative distribution emerges. must also be considered.
 Distribution Criteria

Use middle men sell directly

product type simple sophisticated

after sales service few critical

company resources weak strong

distribution low control high control

price low high

Backward distribution

Marketing channels usually describe forward movement

of products. from manufacturers to the ultimate
consumers. However, it is possible that backward
distribution will become a trend as well as a challenge
with the increasing popularity of green marketing.
ex.
At present, the bottled beverage industry like Coke, Pepsi,
San Miguel, and Asia Brewery utilize the same distribution
channel to recover empty bottles for reprocessing
Grey Marketing

Gray marketing or parallel distribution is a form

used to describe unauthorized importation and
distribution of products bearing genuine brands
across markets.
Parallel distribution is destructive.
 Global and Regional market

One major trend in business is the regionalization of

markets, which will ultimately load to the
globalization of markets. Countries within most
regions have established trade blocs by agreeing on
an exclusive set of common market access
conditions different from those applied to countries
that are not members of the bloc

No of countries Participating countries Estimated Population Estimated GDP in US$

Brunei / Cambodia /
US$ 2.55 trillion
Indonesia / Laos /
ASEAN free trade area 629 million( 8.5 % of (projected to be 50% of
10 Malaysia / Myanmar /
(AFTA) world population) the world's GDP by
Philippines Singapore /
2050)
Thailand / Vietnam

North American free

3 Canada / Maxico / USA 460 milion US$20.08 trillion
trade area(NAFTA)

Austria / Belgium /
Aulgaria / Croatia /
Cyprus / Czech /
/Donmark / Estonia /
finland /Franco A
Germany / Grooco /
Hungary / Iceland /
European economic area troland / Italy / Latvia /
32 513 milion. U$ 14 trillion
(EEA) Lachtenstein / Linuania
/ Luxembora / Mata /
Notoriand / Norway /
Poland / Portugal /
Romania / Siovakia /
Slovenia / Spain /
Sweden / Switzeriand /
Uk
 Supply Chain Management

Supply chain management is the management of the

flow of goods and services includes all processes
that transforms raw materials into final products. it
involves the active streamlining of a business supply
side activities to maximize customer value and gain a
competitive advantage in the market place
Thats all thank you!