deals with the “place” part of the marketing mix

This aspect of the marketing function provides place, time and possession utility to the customer.

The management of all activities which facilitates movement and coordination of supply and demand in the creation of time and place utility in goods

The art and science of determining requirements, acquiring them, distributing them and f hally maintaining them in an operationally ready condition for their entire lives

Broad range of activities concerned with the ef tient movement of f nished products from the end of the production line to the consumer and in some cases it also includes the movement of raw materials from the source of supply to the beginning of the production line.

the external contractual organization that management operates to achieve its distribution objectives

meaning marketing channel exist outside the firm. Management of the marketing channel therefore involves the use of inter-organizational management (managing more than one firm) rather than intra- organizational management (managing one firm).

those f ims or parties who are involved in negotiatory functions consists of buying, selling, and transferring title to products or services.

involvement by management in the affairs of the channel.

means that management has certain distribution goals in mind

4 TERMS OF MARKETING CHANNELS

refer to anyone in a firm or organization who is involved in marketing channel decision making.

- is a much broader and more basic component than logistics management. Concerned with entire process of setting up and operating the contractual organization that is responsible for meeting the f ims distribution objectives.

s more narrowly focused on providing product availability at the appropriate times and places in the marketing channel.

refers to the actual physical movement of the product from the manufacturer through all of the parties who take physical possession of the product, from its point of production to final consumers

represents the interplay of the buying and selling functions associated with the transfer of title (right of ownership) to products

shows the movement of the title to the product as it is passed along from the manufacturer to final consumers.

showing the f bw of information from the manufacturer to consumer are twodirectional. The flow can be either up or down.

refers to the f bw of persuasive communication in the form of advertising, personal selling, sales promotion, and publicity.

FLOWS IN MARKETING CHANNELS

fancy way of saying “eliminate the middleman” has become popular jargon in the business lexicon.

level of negotiation effort between sellers and buyers relative to achieving a distribution objective. It is a relationship between an input (negotiation effort) and an output (the distribution objective).

one that often is not explicitly def ned in the marketing literature.

Perhaps the most typically discussed dimension is length the number of levels of intermediaries in the channel.

simply means that the firm has chosen to reach its customers through more than one channel

CHANNEL STRATEGY TWO LEVEL STRUCTURE

CHANNEL STRUCTURE (THREE-LEVEL)

CHANNEL STRUCTURE 4 LEVEL

CHANNEL STRUCTURE 5 LEVEL

group of institution (facilitating agencies) and parties that assists channel members in performing distribution tasks

management of all activities which facilitate movement and the coordination of supply ad demand in the creation of time and place utility

art and science of managing and controlling the flow energy, information and other nagrand

the planning, implementation and control of the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customer requirements.

the positioning of resource at the right time, in the right place, at the right cost, at the right quality

like location of warehouses, number and size of distribution depots, type of storage, and materials handling equipment

unit load, protective packaging, handling system

what to stock, where to stock, how much to stock

mode of transport, type of delivery operation, load planning, route schedule

design of systems, control procedures, forecasting

KEY COMPONENTS OF LOGISTICS AND DISTRIBUTION

In this period, distribution systems were unplanned and unformulated. Manufacturers manufactures, retailers retailed, and in some way or other goods reached the shops. Distribution was broadly represented by the haulage industry and manufacturer's own-accounts f bets. There was little positive control and no real liaison between the various distribution- related functions.

the concept of physical distribution was developed with the gradual realization that the 'dark continent' was indeed a valid area for managerial involvement.

This was an important decade in the development of the distribution concept. One major change was the recognition by some companies of the need to include distribution in the functional management structure of an organization. The decade also saw a change in the structure and control of the distribution chain

There was a decline in the power of the manufacturers and suppliers, and a marked increase in that of the major retailers. The larger retail chains developed their own distribution structures, based initially on the concept of regional or local distribution depots to supply their stores.

Fairly rapid cost increases and the clearer def nition of the true costs of distribution contributed to a signif icant increase in professionalism within distribution. With this professionalism came a move towards longer-term planning and attempts to identify and pursue cost-saving measures. These measures included centralized distribution, severe reductions in stock-holding and the use of the computer to provide improve information and control.

Linked very much to advances in information technology, organizations began to broaden their perspectives in terms of the functions that could be integrated. In short, this covered the combining of materials management (the inbound side) with physical distribution (the outbound side). The term 'logistics' was used to described this concept. Once again major emphasis made during this period was that informational aspects were as important as physical aspects in securing an effective logistics strategy.

process was developed even further to encompass not only the key functions within an organization's own boundaries but also those functions outside that also contribute to the provision of a product to a final customer. This is know as supply chain management. The supply chain concept gave credence to the fact that there may be several different organizations involved in getting a product to the marketplace.

Business organizations faced many challenges as they endeavored to maintain or improve their position against their competitors, bring new products to market and increase the prof tability of their operations. This led to the development of many new ideas for improvement, specif cally recognized in the redef nition of business goals and the re- engineering of entire systems

Logistics and the supply chain f hally became recognized as an area that was key to overall business success. Indeed, for many organizations, changes in logistics have provided that catalyst for major enhancements to their business. Leading organizations recognized that there was a positive ‘value added’ role that logistics could ofer, rather than the traditional view that the various functions within logistics were merely a cost burden that had to be minimized regardless of any other implications.