Laura Baranda Gonzlez 5 MKT

The process of planning, implementing and efficiently control the flow of materials, storage, in-process inventory, finished products and relevant information from the point of origin to point of consumption, at the lowest possible cost.

Laura Baranda Gonzlez

Series of activities that must be met to achieve the objectives. It is an information sistem. It can be as large or as small as the company wants. All activities are equally important.

Laura Baranda Gonzlez

 Established by E. Grosvenor Plowman.

Right product Right place Right time
Right condition Right cost
Laura Baranda Gonzlez

Customer service

Comunication

Transport

Inventory control

Shopping

Handling returns

Storage
Laura Baranda Gonzlez

Plant and warehouse location

Warranties & service.

Packing

Reverse logistics

Waste & scrap

Purchase orders.

Material handling.
Laura Baranda Gonzlez

Demand forecasting

 Distribution is the bridge between producers and final consumers.

There are four stages of the distribution: 1. Periodic markets. 2. Permanent markets. 3. Fragmented markets. 4. Integrated markets.

Laura Baranda Gonzlez

Periodic markets. From the origin to the Middle Ages. Barter. Merchants have their fairs and markets and religious festivals.

Permanent markets. Modern age. Geographic markets. Markets settled permanently in certain cities.

Laura Baranda Gonzlez

Fragmented markets. Industrial Revolution. They specialize merchants. It eliminates the producertrader. Focused on production or distribution.

Integrated markets. Crisis of 1929. Distribution structure. Integration of the different forms of distribution. Producer, wholesaler and retailer.

Laura Baranda Gonzlez

 People or organizations that get products from manufacturers to the consumer. Own the product at the time and facilitating the transfer of ownership of the product.

Laura Baranda Gonzlez

Consumer search
Provider search

Storage

Price equilibrium
Laura Baranda Gonzlez

Financing

Product approach

Services.

Obsolescence & deterioration risk

Packaging of
Laura Baranda Gonzlez

Promotion

Wholesalers.
Purchase products for resale.

Commercial.
Products purchase for resale.

Retail or retailer.
* Purchase products for resale.

Agents & brokers

Never own products, but the transfer of rights.
Laura Baranda Gonzlez

a) Determination of prices. b) General conditions of sale. c) Definition of the geographic area. d) Specification of all the details.

Laura Baranda Gonzlez

 It requires a well-organized method for designing channels that satisfy customers and overcome competition. There are 4 choices: 1. Specify the distribution function 2. Select the type of channel. 3. To determine the intensity distribution 4. Select specific members of the channel.

Laura Baranda Gonzlez

 a channel strategy should be designed within the context of the overall marketing mix. It reviews the objectives of marketing.

Laura Baranda Gonzlez

 After specifying the distribution function of the overall marketing program, we choose the most suitable channel for the company's product

Laura Baranda Gonzlez

a) Intensive Distribution : Is the case with these types of products that are found everywhere, such as cigarettes.

b) Exclusive distribution: it is characterized by the granting of exclusive product distribution to a few distributors, geographic boundaries, but with the express condition that such dealers refrain from selling competing products, as expected. c) Selective distribution: it combines the advantages of the previous two, and although it provides a relative weakening of controls that aspires all products, it is also very true that reduces the costs of marketing the products.
Laura Baranda Gonzlez

 Certain companies choose to distribute the product, since there are often many companies to choose from.

Laura Baranda Gonzlez

a) Market factors. Type of market. Number of potential buyers. Geographic concentration of the market. b) Product factors. Unit value. perishability. technical nature of a product.

c) Company factors. Desire to control the channels. Services given by the seller. The ability of executives. Financial resources.
Laura Baranda Gonzlez

 Mitigate the conflict or at least its negative effects. Increase control of the company within a channel.

Horizontal conflict. It takes place between companies located on the same level of distribution.

Conflict between producer & wholesaler. Manufacturers believe that wholesalers do not promote the product aggressively and maintain sufficient inventories. Services cost too much.

Conflict between producer & retailer. Likely to intensify in times of economic crisis.

Laura Baranda Gonzlez

Manufacturers can: Create a strong brand loyalty Establish one or more forms of vertical marketing system Refusing to sell to dealers who do not cooperate.

Retailers can: Create loyalty to the store Improve the computerized information systems

Laura Baranda Gonzlez

Exclusive markenting. Restrictive contracts. Refusal to distribute Policy exclusive territory.

Laura Baranda Gonzlez

Exclusive marketing.
a) The manufacturer's sales volume b) Contract c) It has been determined that the exclusive distribution is permissible when: There are equivalent products. A manufacturer is entering the market and its total is so small as to be negligible.

Restrictive contracts. It is permissible when: A new company is trying to enter a market. An exclusive distributor is obliged to sell the full line of products from the manufacturer, but is not prohibited from selling the competition.

Laura Baranda Gonzlez

Refusal to distribute. provided to select the channels, a producer may refuse to sell.

Policy exclusive territory. Are permitted when: A company is small or just entering the market. A manufacturer establishes a corporate vertical marketing system. A manufacturer uses independent intermediaries.

Laura Baranda Gonzlez

Product distribution (range). Distribution channel selection Discrepancies. Channel functions Channel structure. Selection, Administration, Logistics and Marketing.

Laura Baranda Gonzlez

Product distribution (range). This can be: Vertical (control functions from start to finish) Horizontal (very limited, it combines institutions at the same level of operations)

Selection of the distribution channel.

Coverage of the market: size and potential market value of the desired supply.

Control: a short channel is better because it provides more control.

Costs: distribution are lower when no intermediaries in the channel.

Laura Baranda Gonzlez

Discrepancies. Represent additional costs of planning In many Assortment Temporary In space

Channel functions. Transaction (monitoring) Logistics (Infrastructure) facilitation (marketing)

Laura Baranda Gonzlez

Structure of the channel. It is different for each type of product. Other options. (Alternate Channel) Multiple Channel Channel nontraditional Reverse Channel Strategic alliance channel Global Marketing Channel

Selection, Administration, Logistcs & Marketing. Balance, service and cost Physical Distribution Price / Cost Economy of scale Utilities Standards Planning Inventories / turnover Auctions Seasonality

Laura Baranda Gonzlez

 Logistics allows to create strategic alliances in order to join forces, bringing the best of each company and thus provide a better service. Logistics is a competitive advantage for businesses, so each day more and more companies make use of it, but also requires technology to improve the information system. Logistics brings benefits to both, customers and the company, customers get what they want, whenever they want at the price that suits them, in the meantime companies save costs.
Laura Baranda Gonzlez

 It is important to use distribution channels as these help us to make work more efficient, but also requires an analysis of the best structure to carry it out. Distribution channels save time and money to businesses and customers, using them can be the key to success, a strategy based on logistics should be well planned.

Logistics is a series of activities that guide the company on the right track, primarily deals with the distribution of a product or service.

Laura Baranda Gonzlez

Logisctics & distribution channel.

Laura Baranda Gonzlez