2. Marketing Channels(Distribution Channels) System of marketing institutions that promote the physical flow of goods and services, along with ownership title, from producer to consumer or business user; also called distribution channel Moving goods and services from producers to customers
7. Dual Distribution Movement of products through two or more distribution channels to reach the same target market IBM: An Example of a Firm That Uses Dual Distribution to Sell Its Personal Computers
10. Determining Distribution Intensity Intensive Distribution - used for convenience goods - saturation coverage of the market Selective Distribution - a firm chooses only a limited number of retailer in a market area to handle its product. - cooperative advertising is frequently used Exclusive Distribution - specialty goods - one wholesaler or retailer in a geographic region.
11. Channel Management & Leadership Historically, producers or wholesalers served as channel captains, over small retailers. However, many retailers increasingly are taking on the role of channel captain as large chains assume traditional wholesaling functions.
12. Logistics And Supply Chain Management Process of coordinating the flow of information, goods, and services among members of the distribution channel. Physical Distribution Activities to achieve efficient movement of finished goods from the end of the production line to the consumer. Transportation is part of it.
13. RFID – Radio Frequency Identification Technology that uses a tiny chip with identification. Information can be read from a distance by a radio frequency scanner.
14. Physical Distribution Includes: transportation, warehousing, materials handling, protective packaging, inventory control, order processing, and customer service.
15. Customer Service Standards The quality of service that the firm provides its customers. It’s a powerful tool for influencing buyers perception of overall quality.
16. Transportation Transportation costs are the largest expense item in physical distribution and is a key in customer service. 40%-60% of distribution cost of business What has Deregulation done to transportation?
17. Classes for Carriers All forms of transportation. Ex: trucks Common carriers are for-hire carriers who serve the general public. Contract carriers contract to work for only specific customers and in only one industry. Private carriers are not-for-hire carriers who transport for only one specific firm.
18. Major Transportation Modes Railroad – most frequently used & most efficient for bulk commodities over long distances. Motor carriers – fast and flexible Water carriers – slow but inexpensive Pipelines – low-maintenance, dependable, and efficient Air freight – fastest but very expensive Intermodal – piggyback, fishyback, birdyback
19. Warehousing Two types- Storage and Distribution Automated warehouses Inventory control systems – some firms utilize just-in-time management Order processing is another physical distribution function Protective packaging and materials handling.
