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Distribution Management and the Marketing Mix
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Distribution Management and the Marketing Mix
Figure 8.1 Major Role of an Intermediary
TIME UTILITY
POSSESSION UTILITY
Distribution Management
* The management of all activities which facilitates movements and co-ordination of supply and demand in the creation of time and place utility in goods
* The art and science of determining requirements, acquiring them, distributing them and finally maintaining them in an operationally ready condition for their entire lives.
* Broad range of activities concerned with the efficient movement of finished products from the end of the production line to the consumer and in some cases it also includes the movement of raw materials from the source of supply to the beginning of the production line.
WHY COMPANIES NEED DISTRIBUTION CHANNEL
Intermediaries or channel members are normally expected to perform the following functions:
* to accumulate the right kind of goods, aggregating and sorting to meet consumer needs at the point of purchase
* to believe in routine and simplified transactions and work ...
* to provide information both to the sellers and the buyers to help them manage their business better
Figure 8.2 Role of an Intermediaries
Company 1
Company 2
Company 3
Intermediary
Large number of Consumers
Marketing channels are the distribution networks through which producer's products flow to the market
-Cundiff, Still and Govoni
Marketing channel may be defined as the external contractual organization which management operates to achieve its distribution objective
- Bert Rosenbloom
A distribution channel is a set of independent organization involved in the process of making a product or service available for use or consumption by the customer or industrial user
-Kotler and Armstrong
A Combination Works Better
PLACE UTILITY
Players Involve
The company and its distribution network
* direct company to consumer
* company to a C&FA
* distributor to wholesaler to retail