Distribution The Role of Distribution To ensure that the products - - PowerPoint PPT Presentation

Distribution

Marketing Mix

The Role of Distribution To ensure that the products are available for customers at the right place, right time, in right quantities and in right conditions

Definition  Distribution is the process of making a product or service available for use or consumption by a consumer or business user, using direct means,

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using indirect means using intermediaries.

Manufacturer Wholesaler Retailer Consumer

Manufacturer Agent Wholesaler Retailer Consumer

2-stage Channel 3-stage Channel

• Retailers
• Wholesalers
• Distributors
• Agents/Brokers
• Franchise
• Modern trade (supermarkets/Hypermarkets)
• Vending machines
• E-commerce (electronic retailing)

TYPES OF INTERMEDIARY

MARKET COVERAGE STRATEGIES

• INTENSIVE DISTRIBUTION
• SELECTIVE DISTRIBUTION
• EXCLUSIVE DISTRIBUTION

MARKET COVERAGE STRATEGIES

INTENSIVE DISTRIBUTION

Intensive distribution occurs when the product is placed in as many outlets as possible and no interested intermediary is barred from stocking the product. The key benefit to customer is that convenience and availability may be just around the corner. Example: convenience goods such as bread, newspapers, milk, soap, soft drinks etc.

SELECTIVE DISTRIBUTION

A more selective approach in using a small number of carefully selected

• utlets within a defined geographical area to distribute the products.

Example: shopping goods such as consumer durables, furniture, clothing etc which need a specialist retailer who might be expected to offer technical advice and after sales services.

EXCLUSIVE DISTRIBUTION

Exclusive distribution is the opposite of intensive distribution, and means that only one outlet is used in a relatively large geographical area to distribute the product. Example: specialty products of high value and prestigious. (higher image control) Mercedes, Rolex watches, Designer labels etc.

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Promoti

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(C (Commun

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ication)

Marketing Mix

Product Price Place

Promotion

Companies need to regularly communicate with their customers

Marketing promotions are the means by which an organization attempts to inform, persuade (convince) and remind consumers – directly or indirectly – about the products it sells

Target Consumers

Remind Persuade Inform

“Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor (Philip Kotler )

Company Advertisement  Audio/Visual Media House Payment Payment

Qualities

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Advertising

Public Presentation – can address a large public to gain awareness Impersonal – No live person get contact with Amplified Expressiveness - Can use visual, sound, print, etc. and express the message with more details

Print media – Newspapers, Magazines, directories Broadcast advertising – Radio, television, mobile phones Outdoor advertising – Billboards, posters Transport advertising – Buses, Trains Internet advertising – web based banners Cinema advertising – screen ads

“Sales promotion consists of short-term incentives to encourage purchase or sales of a product or service” Sales promotion offers reasons to buy now

Sales Promotions Trade Promotions Consumer Promotions

To encourage consumers To encourage sellers

To motivate shop owners to stock and display more and more products E.g. ‘25 Shops which display the products will be awarded a 2-days sponsored trip to Singapore’

To motivate customers to purchase

MARKETING COMMUNICATION MIX ELEMENTS 03 - Public Relations Building good relationships with the company’s various publics by obtaining favorable publicity, building a good “corporate image” and handling or heading off unfavorable rumors, stories and events (Philip Kotler)

04 - Personal Selling: Personal presentations by the firms sales force for the purpose of making sales and building customer relationships. (Philip Kotler) 05 - Direct Marketing: Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate long term relationships. (Philip Kotler)

AIDA MODEL

ATTENTION INTEREST DESIRE ACTION

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