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Principles of Marketing

The document discusses principles of marketing distribution and physical distribution. It defines distribution channels as the path goods and services take from production to final users. There are business-to-business and business-to-consumer distribution channels. Distribution channels can be direct from producer to customer or involve wholesalers and retailers. Physical distribution facilitates moving goods from manufacturers to customers and involves transportation, warehousing, order processing, and materials handling. The efficient flow of inventory through the supply chain is important.

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54 views20 pages

Principles of Marketing

The document discusses principles of marketing distribution and physical distribution. It defines distribution channels as the path goods and services take from production to final users. There are business-to-business and business-to-consumer distribution channels. Distribution channels can be direct from producer to customer or involve wholesalers and retailers. Physical distribution facilitates moving goods from manufacturers to customers and involves transportation, warehousing, order processing, and materials handling. The efficient flow of inventory through the supply chain is important.

Uploaded by

Arvin John Lobo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Principles of Marketing

DISTIRBUTION

Objective: The learners shall be able to discuss the structure of


distribution channels, its functions and the nature of supply chain
management.
• A distribution channel in marketing refers to the path or route through
which goods and services travel to get from the place of production or
manufacture to the final users. It has at its center transportation and
logistical consideration.
• Business to Business (B2B) distribution occurs between a producer and
industrial users of raw materials needed for the manufacture of finished
products.
• Business to customer (B2C) distribution occurs between the producer and
the final user. for instance, the lumber manufacturer sells lumber to the
furniture maker, who then makes the furniture and sells I to retail stores,
who the sell it to the final customer.
Four main types of marketing channels
• Producer to Customer
• Producer to Retailer to Consumer
• Producer to wholesaler/Distributor to customer
• Producer to Agent/Broker to Wholesaler or Retailer to Customer
Functions of Distribution Channels

• Information provider
• Price stability
• Promotion
• Financing
• Title
• Help in production function
• Matching demand and supply
• Pricing
• Standardizing transactions
• Matching buyers and sellers
Nature of Supply Chain Management

• A supply chain consists of the various firms included I executing


the activities needed to produce and transport a product or service
to consumers or industrial user. A supply chain comprises suppliers
that provide raw materials to a producer and also the wholesalers
and retailers that distribute finished goods to consumers.
• Supply Chain Management (SCM) is the supervision of materials,
information, and finances as they move in a process from supplier
to manufacturer to wholesaler to retailer to consumer. Supply
chain management involves synchronizing and incorporating these
flows both within and among companies.
Key Processes of Supply Chain Management

• Business processes consist of bundles of interlinked activities that


stretch across firms in the supply chain. They are key areas that
some of all of the involved firms are continuously working to
reduce costs and generate earnings for everyone in the supply
chain management. There are eight critical business processes
which supply chain managers must focus.
• Customer relationship management
• Customer service management
• Demand management
• Order-fulfillment
• Manufacturing flow management
• Supplier relationship management
• Product development and commercialization
• Returns management
• Logistics is the strategic managing of the efficient flow and storage of raw materials,
in-process inventory and finished goods from the point of origin to point of
consumption. The supply chain entails a number of interconnected logistical
components which are:
• Sourcing and procurement
• Production scheduling
• Order processing
• Inventory control
• Warehousing and materials handling
• Transportation
• Cost
• Transit time
• Reliability
• Capability
• Accessibility
• traceability
MARKETING CHANNELS

Objective: To enumerate the Marketing channels


At the end of the chapter, the student is expected to understand
the following:
• Definition of marketing channels
• Functions of Marketing Channels
• Types of Marketing Channels
• Factors that influence channel selection
• Distribution Strategies
Definition of Marketing Channels

Marketing Channels may be defined as a set of interdependent


organizations and individuals that facilitate the movement and
transfer of ownership of commodities from the producers to the
ultimate users.
Functions of Marketing Channels

1. Routinization of decisions
2. Financing
3. Pricing
4. Channel of Communication
5. Assistance in Promotional Activities
6. Minimization of number of transactions.
Types of Marketing Channels

• 1. Consumer Channels
• 2. Industrial Channels
Factors that influence channel selection

1. The nature of the product


2. The nature of the market; and
3. The nature of the company
Distribution Strategies

• Intensive distribution is a strategy that requires the firm to sell


its products through every available outlet in a market where a
consumer might reasonably try to find them.
• Selective distribution is selling through only those outlets which
will give the product special attention.
• Exclusive distribution agreement is one where the producer
grants exclusive selling rights to a middleman in a certain area.
PHYSICAL DISTRIBUTION

Objective: To discuss the importance and components of physical distribution


At the end of the chapter, the student is expected to understand the
following:
• Definition of Physical distribution
• Definition of transportation and it’s forms
• Definition of warehousing and types
• Order processing
• Components of order cycle
• Materials handling
Definition of Physical Distribution

• Physical distribution is a marketing function which facilitates the


movement of goods from the manufacturer to the location of the
ultimate users.
Elements of an efficient physical
distribution
• 1. Inventory planning and control
• 2. Transportation
Forms of transportation
1. Railroads
2. Trucks
3. Water vessels
4. Pipelines
5. Airplanes
3. Warehousing
Types of warehousing
1. Public warehousing
2. Private warehousing
4. Order processing
Four major components of order cycle

1. Order placement refers to the time that elapses from the time the
customer develops the order until the order is received by the seller.
2. Internal order processing refers to the time required to process the
customer’s order until it is ready for shipment.
3. Order preparation refers to all activities relating to the picking and
packaging of individual customer orders.
4. Order shipment refers to the time the order is placed upon a transport
facility until the goods ordered are unloaded and received by the
customer.
5. Materials handling
THANK YOU!!!

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