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Unit 4 Distribution 3
Unit 4 Distribution 3
N
SUPPLY CHAINS AND THE VALUE
DELIVERY NETWORK
Value delivery network:- a network
composed of the company, suppliers,
distributors and ultimately customers who
partner to help the entire system delivery
better customer value.
THE NATURE AND IMPORTANCE OF
MARKETING CHANNELS
Marketing channels or distribution
channels:- a set of interdependent
organizations that help make a product or
service available for use or consumption
by the consumer or business user.
OBJECTIVES OF DISTRIBUTION
Movement of products
Spreading of products
Protection of products
Means of production
Channel of communication
Risk taking: assuming the risk of carrying out the channel work
CHANNEL
CHANNEL LEVELS
LEVELS
A layer of intermediaries that performs some work
in bringing the product and its ownership closer to
the final buyer.
• Direct Marketing channel has no intermediary
level.
• Indirect marketing Channel has one or more
intermediary levels.
•Manufacturer
•Wholesaler
•Retailer
•Consumer
CHANNELS OF DISTRIBUTION
CONT….
Producer-consumer channel
Producer-retailer-consumer channel
Producer-wholesaler-retailer-consumer channel
Producer-agent-wholesaler-retailer-consumer channel.
CHANNEL BEHAVIOR AND
ORGANIZATION
Channel conflict:- disagreement among marketing
channel members on goals, roles and rewards – who
should do what and for what rewards.
Horizontal conflict:- it occurs among firms at the same
level of channels
Vertical conflicts:- it occurs between different levels of
the same channels.
Evaluating
Evaluating the
the Major
Major Alternatives
Alternatives
Exclusive
Exclusive Selective
Selective Intensive
Intensive
Distribution
Distribution Distribution
Distribution Distribution
Distribution
Identifying
Identifying Major
Major Alternatives
Alternatives
Setting
Setting Channel
Channel Objectives
Objectives &
& Constraints
Constraints
Analyzing
Analyzing Consumer
Consumer Service
Service Needs
Needs
Channel Design
Channel Decisions
Design Decisions
CHANNEL MANAGEMENT DECISION
FEEDBACK
Selecting
Selecting
CHANNELMANAGEMENT
CHANNEL DECISIONS
MANAGEMENT DECISIONS
LOGISTICS MANAGEMENT
Speed
Consistency
Safety
CONT…….
Warehousing
Private and public warehouses
Number of warehouses
Material handling
Order processing
Order entry
Order handling
Order delivery.
INTEGRATED LOGISTIC MANAGEMENT
Building Channel
Building Partnerships
Channel Partnerships
Logistics
Third-Party Logistics
Third-Party