Matakuliah : J0114/Manajemen Pemasaran
Tahun
: 2008
Distribution Strategy
Pertemuan 19
Learning Outcome
•Students are able to draw conclusions on the
urgency of distribution and its surrounding
environment.
Bina Nusantara
Material Outline:
•
•
•
•
Distribution and marketing management
Distribution participants
The environment of distribution
Behavioral processes in distribution
Bina Nusantara
Distribution and Marketing Management
• The well known marketing mix strategy model provides
the basic framework for viewing the distribution
management.
• Marketing mix as a strategic blending of four basic
controllable marketing variables to meet the demand of
market segments to which the firm wishes to appeal.
• The basic marketing mix variables often referred as
Product, Price, Place and Promotions
Bina Nusantara
Distribution and Participants
• All participants:
– Do they perform negotiatory functions?
• Member participants:
– Contactual organization:
• Producers and manufacturers
• Intermediaries
• Final users
• Non member participants:
– Facilitating agencies:
• Transportation firms
• Storage firms
• Financial firms
Bina Nusantara
Distribution Participants
• All wholesale firms:
– Independent middlemen:
• Merchant wholesalers
• Agents, brokers, and commission merchants
– Manufacturer owned:
• Manufacturer’s sales branches
• Wholesalers should:
–
–
–
–
Bina Nusantara
Develop a marketing plan for the sales force
Redesign the sales force compensation plans
Develop an effective career path training for the sales force
Evaluate technology and other productivity tools to assist in the sales
force effort.
Distribution Participants
• Merchant wholesalers should perform:
–
–
–
–
–
–
Bina Nusantara
Assuring product availability
Providing customer service
Extending credit and financial assistance
Offering assortment convenience
Breaking bulk
Helping customers with advice and technical support
Distribution Participants
• Facilitating agencies:
– Transportation agencies, include all firms offering transportation
service on a public basis
– Storage agencies, consist mainly of public warehouses that
specialize in the storage of goods on a fee basis
– Advertising agencies, offer the channel member expertise in
developing promotion strategy
– Financial agencies, consist of firms such as banks, finance
companies, and factors that specialize in discounting accounts
receivable.
Bina Nusantara
The Environment of Distribution
•
•
•
•
•
Economic environment
Competitive environment
Socio-cultural environment
Technological environment
Legal environment
Bina Nusantara
Behavioral Process in Distribution
• Distribution as a social system:
– The system generated by any process of
interaction on the sociocultural level,
between two or more actors. The actor is
either a concrete human individual or a
collectivity
Bina Nusantara
Behavioral Process in Distribution
• Causes of channel conflict:
– Role incongruities:
• Franchisees are expected to operate in strict accordance with the
franchisor’s standard operating procedures.
– Resource scarcities:
• Sometimes conflicts stem from a disagreement between channel
members over the allocation of some valuable resources needed to
achieve their respective goals.
– Perceptual differences:
• It refers to the way an individual selects and interprets
environmental stimuli. Ex. The use of POP.
– Expectational differences
– Goal incompatibilites
– Communication difficulties
Bina Nusantara
Conclusions:
• Merchant wholesalers should perform:
–
–
–
–
–
–
Assuring product availability
Providing customer service
Extending credit and financial assistance
Offering assortment convenience
Breaking bulk
Helping customers with advice and technical support
• Distribution as a social system:
– The system generated by any process of interaction
on the sociocultural level, between two or more actors.
The actor is either a concrete human individual or a
collectivity
Bina Nusantara