3RD OF THE 4Ps

PLACEMENT OR DISTRIBUTION CHANNELS

TWO TYPES OF DISTRIBUTION CHANNELS:

1. DIRECT

2. INDIRECT

VARIABLES THAT INFLUENCE CHANNEL SELECTION:

1. MARKETS/CUSTOMERS

2. PRODUCTS

3. ORGANIZATIONAL FACTORSASK YOURSELF:

DO IT BETTER? LESS EXPENSIVELY? DO IT AT ALL?

4. COMPETITION

5. AVAILABILITY

VERTICAL MARKETING SYSTEMS: (VMS) PLANNED CHANNEL SYSTEM DESIGNED TO BE EFFECTIVE EFFICIENT

3 TYPES OF VMS:

CORPORATECONTRACTUALADMINISTERED

TOTAL PROCESS OF MOVING GOODS FROM ORIGINATION TO THE CUSTOMER IS CALLED THE SUPPLY CHAIN OR VALUE CHAIN

THE CHAIN CONSISTS OF MANY LOGISTICAL (PHYSICAL DISTRIBUTION) DECISIONS:

RAW MATERIALS/COMPONENTSPRODUCTIONORDER PROCESSINGINVENTORY CONTROL

WHAREHOUSINGMATERIALS MANAGEMENTSHIPPING/TRANSPORTATION