class 23: place - marketing and distribution channels

concept of place

refers to making products available in locations that are convenient and accessible for the target consumers

intermediaries

third-party agents or entities that facilitate the distribution of goods or services from producers to consumers

concept of place

refers to making products available in locations that are convenient and accessible for the target consumers

intermediaries

third-party agents or entities that facilitate the distribution of goods or services from producers to consumers

distribution

refers to the process of getting a product or service from the manufacturer or creator to the end user

how you distribute

place also refers to (blank) your product

marketing channels (distribution channels)

describe the relationship among marketing intermediaries that help make a product or service available to the customer

wholesalers and retailers

intermediary examples

channel level

a layer of intermediaries that performs work in bringing the product closer to the final buyer

whole-channel view

refers to designing an international value delivery network that accounts for the entire global supply chain and marketing channels

vertical integration

producers, wholesalers, and/or retailers acting as a unified system; incorporating or taking control over an actor at a different level of the marketing channel

horizontal integration

two or more companies at the same level of a marketing channel join together to pursue a new marketing opportunity or a common target customer

multichannel distribution systems

allows for access to more customer segments and for more varied and complete access to the same customer segment

disintermediation

refers to the process of removing intermediaries or middlemen from the distribution chain, allowing producers to sell directly to consumers

marketing logistics

refers to managing (i.e., planning, implementing, and monitoring) distribution channels

storage warehouses

locations that store goods for moderate to long periods

distribution centers

large, automated warehouses that manage their inventories to deliver goods to customers efficiently

transportation

major impact on factors central to customer satisfaction ranging from price to the condition of goods

modes of transportation

trucks, railroads, water carriers, pipelines, air carriers, the internet, and combinations of the above (piggybacking, fishybacking)

information management

communication within the firm, between channel partners, and from customers

logistics partnerships

vendor-managed inventory and third-party logistics providers

inbound logistics

focuses on the procurement and movement of materials, parts, or finished inventory from suppliers to manufacturing or assembly plants, warehouses, or retail stores

outbound logistics

refers to the process related to the movement and storage of products from the end of the production line to the end user

customer centered or reverse logistics

deals with the processes associated with the return of products from the customer back to the company