Distribution

Where to sell?

• Price• Target Market• Positioning• Inventory• Channel relationship

Two types of Channels

• Direct to Consumer• Indirect Channels– Agents/brokers– Wholesalers– Retailers

• Also, single channel vs Multichannel

Value of Channel

• Transactional– Contact and promotion– Negotiation– Risk

• Logistical– Physical distribution– Storing– Sorting

Problems in the channel

• Power control/influence behavior of other channel members

• Control one channel member intentionally affects another’s behavior

• Leadership member who exercises authority and power over activities of other

• Conflict clash between members– Horizontal– Vertical

Factors affecting channel choice

• Market– Customer behavior– Geography– Size

• Product– Complexity– PLC– Is product fragile

Three Distribution Strategies

• Intensive• Selective• Exclusive

Types of Retailers

• Food• General Merchandise• Service– AutoRental– Spas– Bank

Food

• SuperMarket• SuperCenter• Convenience• Warehouse Club

General Merchandise

• Full-Line Discount• Category Specialist• Drug• Specialty• Department• Off Price• Extreme Value

Benefits of Stores

• Browse• Touch/Feel• Personal Service• Cash and Credit• Entertainment/Social• Immediate Gratification• Risk Reduction

Benefits of Online Presence

• Deeper and broader selection• Personalization• Insights into Customer Shopping• Increase satisfaction and loyalty• Expand Market presence