Dr.

Amr Sukkar
CHANNELS OF DISTRIBUTION PhD, M.Phil,
MODULE 1
MBA
1
 Amr Sukkar
Bio
Education

• PhD in Management
• Master of philosophy in Public administration
• M.B.A in International Business
• Mastering Business Skills for Entrepreneurs
• Bachelor of Pharmaceutical science
• Training of Trainers (TOT) certified

Current Positions

• European Union Expert Business Economist.

• Management Subject matter Except at National Training Academy

(NTA).

• Owner/Director — Leading Medical Company (Emm Company)

• Business Instructor - American Champer

• Management and Public Administration Adjunct Professor at several

Prestigious international and National Universities
University of LIGS HAWII USA . Management Dept.
RITI Institute (Regional of IT institute)
Arab Academy for Science Technology & Maritime
Transport
ESLSCA Business School
University of MSA (Modern science and Art)
 Agreement
Please :

• Ask anytime • Participate

• Allow me to mute • Share your

everyone experience

• Fun fun fun “ Have • Allow me to

fun “ challenge
 Creating Customer Value
and Engagement

PROFESSIONAL MARKETING COURSE, DR. ANN ADHAM, 2020 4

Production (industrial) Era

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 Sales Era

Sales Era (1920-1950)

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Marketing Era

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 MARKETING MANAGEMENT
ORIENTATIONS
(PHILOSOPHIES)
• Consumers favor products that are available & highly
affordable
Production Concept
Interna

• Focus on: production & distribution efficiency

l

• Consumers favor products that offer the most quality, performance &
innovative features
Product Concept • Make & Sell
• Focus on: continuous product improvements
Orientatio

• Consumers won’t buy enough unless the firm undertakes large-

scale selling & promotion efforts (ex: unsought services:
Selling Concept insurance)
• Focus on: Sales
n

• Focuses on knowing the needs and wants of target markets and

delivering satisfactions better than competitors
Marketing Concept • Sense & Response
Extern

• Focuses on the needs and wants of target markets and on

maintaining or improving customer and social well-being
Societal Marketing Concept • Focus on: Society welfare
al

• CSR: Corporate Social Responsibility 8

MARKETING MANAGEMENT
ORIENTATIONS
(PHILOSOPHIES)

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PROFESSIONAL MARKETING COURSE, DR. ANN ADHAM, 2020
EVOLVING VIEWS OF MARKETING’S
ROLE

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Amr Sukkar
EVOLVING VIEWS OF
MARKETING’S ROLE

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EVOLVING VIEWS OF
MARKETING’S ROLE

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Amr Sukkar
MARKETING:
CREATING CUSTOMER VALUE AND
ENGAGEMENT
Amazon.com’s deep-down passion
for creating customer engagement,
value, and relationships has made it
the world’s leading online retailer.
Amazon has become the model for
companies that are obsessively and
successfully focused on delivering
customer value.

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THE MARKETING PROCESS
CREATING AND CAPTURING
CUSTOMER VALUE

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CUSTOMER VALUE & SATISFACTION

Customers
• Value &
satisfaction

Marketers
• Set the right level of
expectations (not
too high, not too
low)
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PREPARING AN INTEGRATED
MARKETING PLAN AND PROGRAM
The Marketing Mix (4Ps) is the
set of tools the business uses to
implement its marketing
strategy.
This set includes:

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PREPARING AN INTEGRATED
MARKETINGThePLAN AND PROGRAM
Extended Marketing Mix
(7Ps) FYI

*FYI: For your info PROFESSIONAL MARKETING COURSE, DR. ANN ADHAM, 2020 18
19
• The process of planning, implementing and efficiently
control the flow of materials, storage, in-process inventory,
finished products and relevant information from the point
of origin to point of consumption, at the lowest possible cost.

Laura Baranda González

• Series of activities that must be met to achieve the
objectives.
• It is an information system.
• It can be as large or as small as the company wants.
• All activities are equally important.

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 7 RS
▪Right product in
▪Right quantity in
▪Right condition at the
▪Right time and
▪Right place for the
▪Right customer at
▪Right cost
Customer service • Communication • Transport

• Shopping • Handling • Storage • Plant and

returns warehouse
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location
• Warranties • Packing • Waste & scrap
& service.

Reverse
logistics

• Purchase • Material • Demand

orders. handling. forecasting
 MEANING AND DEFINITION

▪ Distribution refers to bringing the

product to the market and giving it to
the final consumer.
▪ According to Mossmam & Norton
“distribution is the operation which creates
time, place & form utility through the
movement of goods and persons from
one place to another”.
• Are sets of interdependent organizations involved in the process
of making a product or service available for use or consumption.
• Distribution is the bridge between producers and final
consumers.

• There are four stages of the distribution:

1. Periodic markets.
2. Permanent markets.
3. Fragmented markets.
4. Integrated markets.
DISTRIBUTION CHANNELS
▪Are intermediaries or middlemen
▪ Exist because producers cannot
reach all their consumers
▪ Multiply reach and provide efficiency to the
marketing process
▪ Facilitate smooth flow
▪ Have the core competence and reach to the
customer
▪ Provide contact, experience, specialisation in
operations
• There are four stages of the distribution:
1. Periodic markets.
2. Permanent markets.
3. Fragmented markets.
4. Integrated markets.
 Periodic markets. Permanent markets.
• From the origin to the • Modern age.
Middle Ages. • Geographic markets.
• Barter. • Markets settled
• Merchants have their fairs permanently in certain
and markets and religious cities.
festivals.
 Fragmented markets. Integrated markets.
• Industrial Revolution. • Crisis of 1929.
• They specialize • Distribution structure.
merchants. It eliminates Integration of the
the producer- trader. different forms of
• Focused on production distribution.
or • Producer, wholesaler
• distribution. and
• retailer.

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▪Provides distribution efficiency to the
manufacturers.
▪Provides vital inputs to the sales people.
▪Looks after the physical distribution
functions.
▪Acts as manufacturer’s godown or depot.
▪Helps in merchandising.
▪Helps in maintaining price mechanism.
▪Promotion additional marketing inputs.
▪Helps in keeping distribution cost to the
optimum.
▪Helps in sales forecasting.
▪Helps in credit and collection of sales
documents.
▪Provides help in marketing research.
• People or organizations that get products
from manufacturers to the consumer. Own
the product at the time and facilitating
the transfer of ownership of the product.

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 • Consumer • Storage
search

• Provider
search

• Price • Financing
equilibrium Laura Baranda González
 • Product
approach
• Services.

Obsolescence &
deterioration risk

• Promotion
Packaging of
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• Determination of prices.
• General conditions of sale.
• Definition of the geographic area.
• Specification of all the details.

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• It requires a well-organized method for
designing channels that satisfy customers and
overcome competition.
• There are 4 choices:

1.Specify the distribution function

2.Select the type of channel.
3.To determine the intensity distribution
4.Select specific members of the channel.

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• a channel strategy should be designed within the
context of
• the overall marketing mix. It reviews the
objectives
• of marketing.

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a) Intensive Distribution : Is the case with these types of products
that are found everywhere, such as cigarettes.

b) Exclusive distribution: it is characterized by the granting

of exclusive product distribution to a few distributors, geographic
boundaries, but with the express condition.

c)Selective distribution: it combines the advantages of the previous

two, and although it provides a relative weakening of controls that
aspires all products, it is also very true that reduces the costs
of marketing the products.

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• Certain companies choose to distribute the
product, since there are often many
companies to choose from.

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1. Market factors.
• Type of market.
• Number of potential buyers.
• Geographic concentration of the
market.

2. Product factors.
• Unit value.
• technical nature of a product.

3. Company factors.
• Desire to control the channels.
• Services given by the seller.
• The ability of executives.
• Financial resources.
Laura Baranda González
1. Market factors.
• Type of market.
• Number of potential buyers.
• Geographic concentration of the
market.
DESIGNING A
CUSTOMER VALUE-
DRIVEN
MARKETING
STRATEGY

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 Marketing management

SELECTING is the art and science of

choosing target markets
and building profitable
CUSTOMERS relationships with them.

TO SERVE
Market segmentation
refers to dividing the
markets into segments of
customers.

Target marketing refers to

which segments to go
after.

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STP MODEL

Segmentation Targeting Positioning

STP: Can you think of Mc Donald’s?

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SELECTING CUSTOMERS TO
SERVE
Which customers shall we serve?
How can we best serve these customers?

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Positioning

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Positioning

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VALUE
PROPOSITION
A brand’s value proposition is the set of
benefits or values it promises to deliver to
customers in order to satisfy their needs.
Your Value Proposition should:
•Identify your customer's main problem
•Connect this value to your buyer's problem
•Identify all the benefits your brand offers
and describe what makes these benefits
valuable
•Differentiate yourself as the preferred
provider of this value (Think of a
competitive advantage)

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SEGMENTING CONSUMER
MARKETS

Geographic Demographic
segmentation segmentation

Psychographic Behavioral
segmentation segmentation

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 https://www.youtube.com/watch?v=G1DuaWeFmrE

SEGMENTATION

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 MARKET TARGETING
SELECTING TARGET MARKET
SEGMENTS
Undifferentiated Differentiated
(Segmented) Concentrated
(Mass) Market (Niche) Market Micromarketing
Market
- Whole - Targets - Targets a large - Tailoring
market= One different market number of a products and
offer segments smaller market marketing
- Ignores - Different offers - Limited programs to suit
segmentation designed for company the tastes of
each resources specific
- Focuses on individuals and
needs rather - Goal: achieve - Deep locations.
than wants higher sales and knowledge of
stronger position the market
- More - More effective
expensive than and efficient
undifferentiated
marketing

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 Client: (of a professional person
or organization) is a person or
company that receives a service
from them in return for payment.

CLIENT Customer: A person who buys a

product (or a service) from a
CUSTOMER shop, business…etc.
CONSUMER
Consumer: A person who uses a
product (or a services).

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FACTORS
AFFECTING
CONSUMER
BEHAVIOR

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 FACTORS INFLUENCING
CONSUMER BEHAVIOR

Cultural Social Personal Psychological

• Culture • Groups • Age • Motivation
• Subculture • Social • Gender • Perception
• Social Class Networks • Lifecycle & • Learning
• Family stage • Beliefs
• Roles & • Occupation • Attitudes Buyer
Status • Economic
situation
• Lifestyle
• Personality
& Self-
concept

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 FACTORS INFLUENCING
CONSUMER BEHAVIOR
Consumer
Behavior
Factors
All

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 FACTORS AFFECTING CONSUMER
BEHAVIOR
1- CULTURE
• The set of basic values, perceptions, wants, and behaviors
learned by a member of society from family and other
Culture important institutions.

• Groups of people within a culture with shared value systems

based on common life experiences and situations
Subcultures

• Society’s relatively permanent and ordered divisions whose

members share similar values, interests, and behaviors.
Social • Measured as a combination of occupation, income, education,
Classes wealth, and other variables

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FACTORS AFFECTING CONSUMER
BEHAVIOR
2- SOCIAL FACTORS
Groups & Social Networks
Membership Aspirational Groups Reference Groups
Groups

• Groups to • Groups an • Groups that

which a individual form a
person wishes to comparison or
belongs belong to reference in
• Ex: club members, • Ex: celebrities, forming
gym members, athletes attitudes or
Rotary club behavior
• Ex: family, friends,
peers or people
who share similar
interest
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FACTORS AFFECTING CONSUMER
BEHAVIOR
2- SOCIAL FACTORS
1. Family is the most important consumer-buying organization in society
2. Role and status can be defined by a person’s position in a group
In addition to:
•Online social networks
•Buzz marketing (viral)
•Social media sites
•Virtual worlds
•Word of mouth
•Opinion leaders

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FACTORS AFFECTING CONSUMER
BEHAVIOR
3- PERSONAL FACTORS
•Age
•Life-cycle stage
•Occupation affects the goods and services bought by consumers
•Economic situations include trends in:

Spending Personal Savings Interest

income rates

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FACTORS AFFECTING CONSUMER
BEHAVIOR
3- PERSONAL FACTORS
•Personality refers to the
unique psychological
characteristics that distinguish
a person or group.

•Lifestyle is a person’s pattern

of living as expressed in his
or her psychographics.

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FACTORS AFFECTING CONSUMER
BEHAVIOR
4- PSYCHOLOGICAL FACTORS

Motivation

Perception

Learning

Beliefs and attitudes

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 FACTORS AFFECTING CONSUMER
BEHAVIOR
4- PSYCHOLOGICAL FACTORS
Beliefs and
Motivation Perception Learning
attitudes
A motive (or drive) Perception is the Learning is changes A belief is a
is a need that is process by which in behavior that descriptive
sufficiently people select, result from thought that a
pressing to direct organize, and previous person has about
the person to interpret experiences. something based
seek satisfaction information to Learning is an on:
of the need. form a ongoing process • knowledge
Motivation meaningful that is dynamic, • opinion
research: A picture of the adaptive, and
world. subject to • Faith
qualitative
research change.  An attitude
designed to describes a
probe consumers’ person’s relatively
hidden consistent
subconscious evaluations,
feelings, and
motivations.
tendencies toward
an object or
idea
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 Government
TYPES OF
SERVICE Private not-for-
INDUSTRIE profit organizations
S
Business
organizations

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2. Product factors.
• Unit value.
• perishability.
• technical nature of a product.

Laura Baranda González

PRODUCT

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 WHAT IS A
PRODUCT?
Products, Services, and Experiences
•A company’s market offering often
includes both tangible goods and
services.
• Products and services are
becoming more commoditized.
•Companies are now creating and
managing customer experiences
with their brands or company.

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INDIVIDUAL PRODUCT
& SERVICE DECISIONS

Develop, communicate and deliver benefits

by product and service attributes.
FAB connects facts to solutions
Features
Style and design
Quality
…etc

FAB
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INDIVIDUAL PRODUCT &
SERVICE DECISIONS
Brand is the name, term, sign, or design or a combination
of these, that identifies the maker or seller of a product or
service.
Value? Promise?

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PRODUCT LIFE CYCLE (PLC)

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PRICING
STRATEGY

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FANCY MCDONALD’S
WWW.YOUTUBE.COM/WATCH?V=WYG4Q8AYVIG
HTTPS://

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DESIGNING THE BUSINESS
PORTFOLIO

A product portfolio:
is the set of all the products and/or services offered by a company.
The business portfolio is:
1- The collection of businesses and products that make up the company.
2- A set of company’s products, services, strategic business units and
allows it to develop its mission and to achieve its strategic goals.
The product portfolio is focused only on the physical items sold
by the company, while business portfolios s focused on a wider
range of elements including productive assets such as
equipment, machinery, and fixed assets.
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ANALYZING
THE
CURRENT
BUSINESS
PORTFOLIO
EXAMPLE

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 DESIGNING
THE BUSINESS
PORTFOLIO
Product/Market Expansion Grid

Developing Strategies for

Growth and Downsizing
Product/market expansion
grid looks at new products,
existing products, new markets,
and existing markets for
company growth opportunities.
ANSOFF Matrix:

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 DESIGNING
THE BUSINESS
PORTFOLIO
Product/Market
Expansion Grid

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Company factors.
• Desire to control the channels.
• Services given by the seller.
• The ability of executives.
• Financial resources.

Laura Baranda González

 Supply Chain:
“Make & Sell” view includes the SUPPLY
firm’s raw materials, productive
inputs, and factory capacity. CHAINS
AND THE
Demand Chain:
VALUE
“Sense and Respond” view suggests DELIVERY
that planning starts with the needs of
the target customer. NETWORK

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SUPPLY CHAIN
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THE NATURE AND
IMPORTANCE OF
MARKETING CHANNELS
Marketing Channel
(Distribution Channel)
is a set of
interdependent
organizations that help
make a product or
service available for
use or consumption by
the consumer or business
user.

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HOW CHANNEL MEMBERS
ADD VALUE

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NUMBER OF CHANNEL MEMBERS

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 DISTRIBUTION CHANNELS
Direct Distribution

Manufacturer Consumer

Indirect Distribution

Manufacturer Wholesaler Retailer Consumer

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CHANNEL
BEHAVIOR AND
ORGANIZATION

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CONVENTIONAL (HORIZONTAL) VS
VERTICAL MARKETING SYSTEMS
Conventional Vertical

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CHANNEL BEHAVIOR

Channel conflict refers to disagreement among

channel members over goals, roles, and rewards.

Horizontal Vertical Multi-

Channel Channel Channel
Conflict Conflict Conflict

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MULTI-CHANNEL
DISTRIBUTION
SYSTEMS
Multi-channel distribution
systems are systems in
which a single firm sets up
two or more marketing
channels to reach one or
more customer segments.

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CHANNEL DESIGN
DECISIONS

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ANALYZING
CONSUMER
NEEDS
•Identify market segments
•Find out what target consumers
want from the channel
•Determine the best channels to
use
•Minimize the cost of meeting
customer service requirements

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 SETTING CHANNEL
OBJECTIVES
The company’s channel objectives are • Do consumers want to buy from nearby
influenced by: locations or are they willing to travel to
more distant and centralized locations?
•The nature of the company
• Would customers rather buy in person, by
•Its products phone, or online?
•Its marketing intermediaries • Do they value breadth of assortment or
•Its competitors do they prefer specialization?
•The environment • Do consumers want many add-on services
(delivery, installation, repairs), or will they
obtain these services elsewhere?

Determine targeted levels of customer

service: Finally, balance consumer needs against costs and customer price preferences
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 IDENTIFYING MAJOR ALTERNATIVES

Types of intermediaries refers to channel members available to carry

out channel work. Most companies face many channel member choices.

Low priced products or

impulse purchases

Highly priced
products /
Intermediaries

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CHANNEL MANAGEMENT
DECISIONS

Selecting Managing Motivating Evaluating

channel channel channel channel
members members members members

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MARKETING
LOGISTICS AND
SUPPLY CHAIN
MANAGEMENT

Nature and Importance of

Marketing Logistics
How to get:
•the right product
•to the right customer
•in the right place
•at the right time?
Inbound logistics: raw material,
resources, supplies
Outbound logistics: products
Reverse logistics: recycle, reuse, broken,
excess…etc

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MARKETING
ANALYSIS –
EXTERNAL Political Economic Social Technological Environmental Legal

ENVIRONME
NT

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 MARKETIN
G
ANALYSIS –
INTERNAL
ENVIRONM
ENT

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MARKETIN
G
ANALYSIS

PROFESSIONAL MARKETING COURSE.DR. ANN ADHAM, 2020 98

 Distribution
Objectives

STRATEGY

Channel Network
Design Strategy

STRUCTURE

Intermediate Warehouses Materials

Management and Transport Management

PROCESS

I Policies and Facilities and Channel

T Procedures Equipment Management

IMPLEMENTATION
MARKETING
IMPLEMENTA
TION
Turning marketing
strategies and plans into
marketing actions to
accomplish strategic
marketing objectives &

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MARKETING STRATEGY &
MARKETING MIX

101
 TASKS
1- Article
2 - Take home Exam

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Amr Sukkar
103
 ASSIGNMENT (ARTICLE)
Topic : The Impact of Covid 19 on Global Supply channels.

Individual Assignment
Format:
1.Word file
2.Number of words : 1500 words (not including references and outlines)
3.Font : Arial
4.Spacing : 1.5
5.Should be original article (Plagiarism will be checked )
6.Citation is necessary
7.References is necessary
8.Soft copy only should be sent on (amressamasukkar@gmail.com) @
(11:45 PM)
9.Must be submitted before 2021
 Amr Sukkar PhD, M Phil, MBA
You tube channel: Amr Sukkar
You tube Program: ‫إدرجي‬
Email Address: amressamsukkar@gmail.com
Facebook pag: Amr Sukkar