Week 11
Distributing
Products
Exclusively designed and presented by:
Anna Riana Putriya
The Four P’s and The Four C’s
Marketing
Mix
Place
Product
Distribution
Customer
Solution
Price
Customer
Cost
Promotion
Communication
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What is the Distribution Mix ?
The combination of distribution channels by
which a seller gets its product to end users
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Channels of Distribution
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Channels 1-4
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Tupperware
http://www.avon.com
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Levi’s
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Gas Station
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How a distributor reduces the number of channel transactions
1
2
3
4
5
6
7
8
9
= Manufacturer
= Customer
A. Number of
contacts
without a
distributor
MxC=3X3=
9
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= Manufacturer
1
= Customer
4
Store
2
= Distributor
5
3
6
B.
Number of contacts with
a distributor
MxC=3+3=6
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Channels 5
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Channels 6-8
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Distribution Strategies
1. Intensive distribution is a strategy by which a
product is distributed through as many
channels as possible
2. Exclusive distribution is a strategy by which a
manufacturer grants exclusive rights to
distribute or sell a product to a limited number
of wholesalers or retailers
3. Selective distribution is a strategy by which a
company uses only wholesalers and retailers
who will give special attention to specific
products
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Agents and Brokers
Agents and brokers serve as independent sales
representatives for many companies’ products
They work on commission
They do not own their merchandise
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Types of E-Intermediaries
1. Syndicated sellers are Web sites that offer another
a commission for referring customers
2. Shopping agents (or E-agents) help Internet
consumers
by gathering and sorting information
3. Business-to-business brokers enable businesses to
buy and sell from one another and confirm
transactions electronically
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Syndicated sellers
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Shopping agents (or E-agents)
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Shopping agents :
http://www.terkenal.com/Belanja_Online/Buku_dan_CD/
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Business-to-business brokers: www.iklanbaris.com
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Merchant Wholesalers
Merchant wholesalers buy products from manufacturers and sell
them to other businesses
Full-service merchant wholesalers provide credit, marketing
and merchandising services
Limited-function merchant wholesalers provide fewer
services
Drop shippers don’t carry inventory or handle products
Rack jobbers market consumer goods directly to retail
stores
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Retailers
Types of Retail Outlets
1. Product line retailers feature broad product lines
2. Bargain retailers carry wide ranges of products
and come in many forms
3. Nonstore and electronic retailing involves selling
all or most of a retailer’s products without brickand-mortar stores
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Product Line Retailers
a) Department stores are organized into specialized
departments
b) Supermarkets are divided into departments of
related products
c) Specialty stores are small stores that carry one
line of related products
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Bargain Retailers
•
Discount houses generate large sales volume by offering
goods at substantial price reductions
•
Catalog showrooms mail catalogs to attract customers into
showrooms to view display samples and place orders to be
picked up at on-premises warehouses
•
Factory outlets are owned by the manufacturer whose products
it sells
•
Warehouse club (or Wholesale club) offers large discounts on
brand-name merchandise to customers who pay annual
membership fees
•
Convenience stores offer easy accessibility, extended hours
and fast service
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Nonstore and Electronic Retailing
Direct-response retailing involves direct interaction with
customers to inform them about products and to receive sales
orders
• Mail order (or Catalog marketing)
• Telemarketing
• Direct selling
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Mail order : Eddie Bauer
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What is Electronic Retailing ?
Nonstore retailing in which information about the seller’s
products and services is connected to consumers’ computers,
allowing consumers to receive the information and purchase
the products in the home
• Internet-Based Stores
• Electronic Catalogs (or E-catalogs)
• Electronic Storefronts and Cybermalls
• From Door-to-Door to E-Sales?
Multilevel Marketing
• Interactive and Video Marketing
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What is Physical Distribution ?
Activities needed to move a product efficiently from
manufacturer to consumer
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Transportation tools
Planes
Trucks
Railroads
Water
carriers
Pipelines
Factors in choosing transportation methods:
Cost
Nature of the product
Distance
Speed
Customer wants and needs
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thank you
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