Distribution Channel and Distribution Strategies
Define the term Distribution Channel and what are the types of Distribution Strategies?
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A marketing channel comprises one or more marketing intermediaries who perform a variety of functions. Each channel member:-
• Provides value;• Performs a function; and,• Expects an economic return.
Types of Distribution Strategies:
• Exclusive distribution: is the distribution strategy in which the distribution is limited to one intermediary in the territory.
E.g. LEICA officially appointed Jebsen & Jebsen Marketing as the exclusive distributor for Singapore, Malaysia, Indonesia, Thailand, and Brunei.• Intensive distribution: in this distribution strategy, distribution is done from as many as outlets as possible to provide location convenience.
E.g. L&T regularly gives its ad in the newspaper
• Selective distribution: in this strategy several retailers are appointed for distribution. All the retailers of that location shall not be appointed.
E.g. Daewoo have 2 distributors in Singapore, “Starsauto, portion of a larger Indonesian group, symbolize Daewoo’s traditional line of sedans. Second is Homegrown family-owned JTA Motors markets Daewoo’s off road vehicles like Musso and Korando, and an up market model called the Chairman.
Cost Avoidance: Action taken to decrease future costs, like replacing parts before they fail and cause harm to other parts. The cost avoidance might incur higher (or additional) costs in shortrun however the final or life-cycle cost would be lower.
Process Breakdown Structure (PBS):A) Process-oriented projects: outcome is a series of steps or phases, rather an identifiably tangible item not suited to WBS definition B) A PBS example (i.e. software pr
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