Industriell Marknadsföring (lecture 6)

Physical distribution refers to activities that move finished goods from manufacturers to final customers including order processing, warehousing, materials handling, transportation, and inventory control

A channel of distribution is a series of firms or individuals that facilitates the movement of a product from a producer to a final consumer

Direct channels from producer to end customer

Indirect channels include intermediaries or middlemen

Distribution channels Provide time, place, and possession utility. Provide logistics and/or physical distribution Create efficiencies by reducing the number of transactions

Breaking bulk Dividing larger quantities of goods into smaller lots to meet the needs of buyers

Creating assortments: Provide variety of products in one location, so customers can conveniently buy many different items from one seller

Transportation and storage Occurs when retailers and other channel members move the goods from the production point to other locations where they can hold them until consumers want them

Facilitating functions (distribution channels) Make the purchase process easier for customers and manufacturers (e.g., offering credit to buyers)

Risk taking (distribution channels) Chance retailers take when they buy a product from a manufacturer, as the product might just sit on the shelf if no customers want it

Communication and transaction (distribution channels) When channel members develop and execute both promotional and other types of communication among members of the channel

disintermediation If intermediaries fail to provide unique value, they are at risk of ?

regarding supply chains, the internet has lead to Better ways to implement knowledge management – a comprehensive approach to collecting, organizing, storing, and retrieving a firm’s information assets

dual (Hybrid) distribution channels comvines different channels (pharmaceutical companies)

Vertical marketing systems (VMS) Channel in which there is formal cooperation among members at two or more levels

Horizontal Marketing system Channel in which there is formal cooperation among members at two or more levels (airline code sharing agreements)

Intensive distribution Maximize coverage by selling through as many outlets as possible

Exclusive distribution Limit distribution to a single outlet in a particular region

Selective distribution Seeks to strike a balance between intensive and exclusive distribution

Logistics is the process of designing, managing, and improving the movement of products through a supply chain

Supply chain is all activities needed to turn raw materials into a product delivered to a customer

Order processing includes activities that occur between the time an order comes in and the time the product goes out

Retailing is the process by which organisations sell goods and services to consumers for their personal use

merchandise mix what a retailer sell, a very important strategic step

Self-service retailers Willy’s, Hemköp, Amazon Go

Full-service retailers personal shopping at Åhléns, NK, Harrod’s

Limited-service retailers Ikea, elgiganten

No-service retailers vending machines

Pop-up stores temporary retail spaces that a company erects to help build buzz for its products

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