In other words, the main task of distribution management is placing the goods in hand of potential customers at the. A plan created by the management of a manufacturing business that specifies how the firm intends to transfer its products to. The channel distribution strategy is shown in exhibit 1. Distribution management is an overarching term that refers to numerous activities and. The american marketing association, the official organization for academic and professional marketers, defines marketing as.
The distributor then sells the product to retailers or customers distribution strategy 4. Provided by institute of marketing management and philip kotler traditionally, markets were viewed as a place for exchange of goods and services between sellers and buyers to the mutual benefit of both. Pdf marketing management project on coca cola mian. Some products, which are premium, might need selective distribution whereas others which are mass products.
Marketing management tutorial in pdf tutorialspoint. Pep is a leading food and beverage company with an impressive global presence. After a product is manufactured it is typically shipped and usually sold to a distributor. Distribution strategy 3 definition distribution is one of the four aspects of marketing. This entails understanding the environment the business is operating in. A field manual and encyclopedic glossary of operations. To respond to customers, an organization must develop a product, determine the price customers are. It is common for firms to adopt multiple distribution channels to reach customers in convenient ways. A single company might have multiple product line and lengths, each with its own distribution strategy.
Marketing intermediaries allow for the smooth flow of products and product. In marketing management, we will discuss the analysis, planning, and decision making that a marketing manager must carry out to implement a marketing plan and a marketing strategy for a company. Nov 18, 2018 3 traditional types of distribution channels in marketing. May 16, 2016 for example, the cocacola company has incredible distribution problems, lack of internal communication, high cost in the distribution process and customer loyal problems stewart 2014. Distribution includes both sales and delivery of everything that surrounds a product including customer service and customer experience. Marketing management process, marketing mix, extended mix for services. Selecting the right channel strategy matrix marketing group. Owomoyelaet al, 20 also see marketing strategy as way of providing a quality product that satisfies customer needs, offering affordable price and engaging in wider distribution and back it up with effective promotion strategy. One of components of marketing mix that in simplest task transfer the product from the production place to the purchase place to the customer. Also, a comparative analysis of the marketing strategy of xiaomi and other manufacturers has been done to understand the reasons for the market success and the exponential growth exhibited by the.
Palmatier and sivadas have adapted this classic text for the modern marketing reality by building a model that shows students how to engage customers across multiple marketing channels simultaneously and seamlessly. Marketing management is the process of planning and executing the conception, pricing, promotion, and distribution of. For any organization to be effective there should be effective distribution management process to. Impact of marketing strategy on business performance a study. Marketing management is the process of decision making, planning, and controlling the marketing aspects of a company in terms of the marketing concept, somewhere within the marketing system.
Distribution strategies used by businesses 5 types of. It outlines the placement of the products and services in order to gain market share and consumer purchases. You might think about why you need a channel strategy for access to markets, marketing, and sales support, or other sales support. Describe the information you would expect to find in the sections of a typical marketing plan and summaries the importance of marketing planning to marketing management. The heart of marketing strategy is the development of a response to the marketplace. Marketing, strategy, and competitive analysis w eve all heard someone in the course of business say that marketing is fluff and hype. Marketing management i about the tutorial marketing management is an organizational discipline, which deals with the practical application of marketing orientation, techniques and methods in enterprises and organizations and with the management of a companys marketing. Lecture notes marketing management sloan school of. As noted in the definition, marketing is the execution of the conception, pricing, promotion, and distribution of the goods, ideas, and services. Marketing management is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges. What is intensive distribution and its advantage in business. Distribution channels can be also defined as marketing channels or market channels. The distribution of lenovo t1 2016 mpk732 marketing. Cocacola companys distribution strategy and suggestion t1.
This knowledge base will provide a foundation for the concepts presented in marketbased management, 6th edition introduction to marketing and marketbased management dr. How to prepare strategy for marketing distribution channel. Successful marketing distribution channel management enables companies to deliver their products to customers efficiently. Marketing strategy is a broad plan for achieving marketing objectives. This involves a number of activities such as product planning, pricing, promotion, use of. Manufactures create a distribution path, a distribution chain or a distribution channel to get the product out of the factory, onto the physical location, put the price tag on it and on the shelf, ready for the customer reach for it. May 16, 2016 the advantages and disadvantages of direct and indirect distribution as shown in the figure below. Overall, distribution strategies depend a lot on the various products which the companies might have. Marketing strategy is a vital prerequisite of industrys ability to strengthen its. Different strategies were adopted in each period of the development which can be divided into three stages.
Strategic role of distribution as a source of competitive. A marketing channel is the people, organizations, and activities necessary to transfer the ownership of goods from the point of production to the point of consumption. Distribution channels meaning and their significance. A distribution channel is a group of dependend on each other organisation units, which are taking part in process of flow of producst or services form producers to buyers. Impact of marketing strategy on business performance a. Describe the elements of a marketing strategy understand the scope of marketing in this lesson, we will discuss the following. Distribution strategy designs the entire approach for availability of the offering starting taking inputs from what the company communicated in marketing campaigns to what target audience is to be served. The marketing manager should make decisions based on the market research that was prepared for the companys business plan.
The second part relates the distribution channel direct marketing. Sales and distribution management which is week 8 and this is the first lecture. Distribution strategy 4 distribution channels to reconcile the needs of producers and consumers to improve efficiency by reducing the number of transactions and creating bulk to improve accessibility by lowering. Overall price strategies follow six step model which is discussed in this article. Overseeing the movement of goods from supplier or manufacturer to point of sale. It is also common for distribution strategy to vary by region as a firm may seek partnerships or light capital structures to reach international markets. Planning designing the blueprint for the future, characteristics of a good marketing plan, importance of marketing planning, strategic corporate planning by top management, vision by top management, assigning resources to each strategic business unit, applications of portfolio models. The structure and management of the marketing channel is thus in part a. Your distribution channel strategy includes selecting the type of channel, determining the intensity of distribution, and designing the channel configuration, and managing the channel. Distribution channles are a linking network between the producers and the consumers. Distribution is one of the four aspects of marketing. It requires management who is constantly aware of changes that are. A distributor is the middleman between the manufacturer and retailer. Mba marketing management full notes pdf download mba 2nd.
As we already established, the distribution channel influences multiple other marketing decisions the price, the product development, employee management, organizational structure etc. Building a foundation for your future 4 customer characteristics and purchasing hot buttons provide the information needed to decide whether the firm can and should attempt to gain or maintain a sustainable competitive advantage for marketing to a particular market segment lehmann and winer 1994. Distribution strategy designs the entire approach for availability of the offering starting taking inputs from what the company communicated in marketing campaigns to. Ideally, marketing should result in a customer who is ready to buy. The article discusses in detail about these channels, their role and significance in a firms marketing strategy. Marketing strategy, in terms of these key constituents, must. Pepsico place and distribution strategy t2 2016 mpk732. An omnichannel approach is the first book on the market to offer a completely unique, updated approach to channel marketing. Marketing strategy must focus on delivering greater value to customers and the firm at a lower cost. Kotler 1997 the selection of target markets, the marketing mix and the marketing expenditure levels. With the rapid development of the society, lenovo cannot succeed without a series of distribution strategy. For example, dell adopt direct distribution while lenove through its own distribution strategy.
The authors show how to develop a marketing orientation in the organisation and how this impacts on the ultimate corporate goals of profit, growth and security. The success of big retailers has been based on particular management systems and. The key findings of the study suggested that the lack of a competitive marketing strategy of the private school group was schoolspecific and therefore it was feasible to develop a marketing strategy. Distribution of products takes place by means of a marketing channel, also known as a distribution channel. Marketing is the management marketing is the management process that identifies, anticipates and satisfies customer requirements. The key to ensuring the successful implementation of the marketing process is management of various components. Chapter 5 marketing strategies an overview marketing strategy is a broad plan for achieving marketing objectives. Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.
Service marketing management emerged as a separate field of study only in the early 1980s, when the distinct characteristics of service marketing management finally dawned on marketers simply put, service marketing management deals with the actions and processes that enable a service provider to deliver. Distribution strategy 15 channel management managing conflict avoiding and resolving. Therefore, this blog will provide some suggestion for cocacola base on the marketing concept in the distribution field. Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives. Distribution strategy is a strategy or a plan to make a product or a service available to the target customers. Distribution strategy definition marketing dictionary.
Distribution or marketing channels are systems of mutually dependent organisations included in the process of making goods or services available for use or consumption. The performance of a product based on a distribution strategy in market. The output form such marketing strategy analysis and choice or strategic marketing decision is a marketing strategy statement. A plan created by the management of a manufacturing business that specifies how the firm intends to transfer its products to intermediaries, retailers and end consumers. Marketbased pricing when exporters are price followers rather than price setters. Intensive distribution and its application in business february 12, 2018 by hitesh bhasin tagged with. Thus, place strategy, which is sometimes referred to as distribution strategy plays a fundamental role in the marketing mix of a product or a service. Sep 19, 2016 pepsico place and distribution strategy september 19, 2016 addy846 pepsico inc. Marketing management articles management study guide. Distribution strategy definition marketing dictionary mba. May 16, 2016 thus, place strategy, which is sometimes referred to as distribution strategy plays a fundamental role in the marketing mix of a product or a service.
A marketing strategy is a business overall game plan for reaching people and turning them into customers of the product or service that the business provides. Therefore, different distributions suit different companies in different situation. Introduction to marketing and marketbased management. A distribution strategy is a plan to reach customers with goods and services. Different types of distribution channels louna sbou term paper business economics trade and distribution publish your bachelors or masters thesis, dissertation, term.
The traditional channel of distribution is a group of independent organizations, each trying to look out for itself, with little concern for the total performance of the channel. It is the way products get to the enduser, the consumer. Sudharsan 1995 marketing strategy creates pathways to a desirable future. Impact of marketing strategy on business performance a study of selected small and medium enterprises smes in.
A case study of a timber product distribution channel. Download free ebooks at strategic marketing 12 so what is marketing. A marketing strategy that is well articulated will enable one to focus on marketing activities to achieve the organisational goal. Marketing is everything you do on a daily basis to sell a product or provide a service to a. However, the wisest, most savvy, and most successful businesspeople understand that marketing is far from that. An analysis of the marketing strategies of primark. Distribution marketing channels, role of distribution channels, value networks, channel design decisions, channel management decisions. Marketing strategy marketing marketing promotionpromotion.
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