Flashcards in Topic 10 - Distribution Deck (19)
What is a pull strategy?
- The want for the consumer demand to pull the product through the distribution channel
Whats a push strategy?
- Here the efforts are aimed at the retailers and wholesalers
- The hope is that through building relationships with the buyers, lots of B2B products can be pushed through to gain greater shelf life
What is a supply chain?
- A network of organisations that are involved in different processes and activities that produce value in the form of products and services
What are marketing channels?
- Organised systems of marketing institutions through which products, resources, information etc flow from production to final consumer
What is physical distribution?
- This co-ordinates the flow of information and products form firm to firm to ensure products are in the right place, in right quantities
What are the three channel structures?
What is an intensive channel?
- This is where the product/service is placed in as many outlets as possible and no intermediary is stopped from stocking the product
- Most popular with FMCGS
What is a selective channel?
- This takes a more selective approach as it only sells its product in small number of chosen outlets
- Often found with products that consumers are more willing to search for
What is a exclusive channel?
- This is when only one outlet sells the product
What are the three types of channel lengths?
1) Direct supply
What is direct supply?
- This is producer to consumer where they deal directly with each other e.g pick your own veg
What is indirect supply?
Producer- retailer- consumer
What is a hybrid supply channel?
Producer- Wholesaler-retailer-consumer- wholesaler
- This is an advantage for smaller businesses as it allows them to have a wider range of products
What is a convenience good, shopping good and a speciality good?
1) Convenience - E.g staples they are impulse buys
2) Shopping goods - E.g furniture where people are willing to go out there way
3) Speciality goods - Unique goods such as Gucci
Who is an 'agent' in the supply chain?
They are the middle man in the supply chain they cant resell at a higher price
Who is a merchant in the supply chain?
They buy and sell on own account
Who is a licensee?
- This is a contractual agreement whereby one company is given the right to use something owned by another company e.g Disney
What is direct marketing?
Marketing throuhg the TV, the web etc