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AMB335 e-Marketing Strategies
Week 6
The Internet and the Marketing Mix:
Distribution and Introduction to Promotion (Ch 5)
The elements of the marketing mix
Figure 5.1
The elements of the marketing mix
Learning objectives
Apply the remaining elements of the marketing mix in an online context (distribution and briefly promotion). We look at promotion more in Ch 8 & 9, wk 7
Evaluate the opportunities that the Internet makes available for varying these elements of the marketing mix.
Distribution Channel Overview
The element of the marketing mix that involves distributing products to customers in line with demand and minimising:
Costs to company (Inventory, Transport, Storage)
Costs to consumer (Time between purchase and fulfilment; Price of item) A distribution channel is a group of interdependent firms that work together to transfer products and information from the supplier to the consumer.
Each channel member performs some marketing functions.
Producers (manufacturer or originator of product/service)
Intermediaries (firms that match buyers and sellers and mediate transactions among them - retailers, resellers, logistics firms)
Buyers (consumers or users of the product or service).
Example: Track My Macca’s
Showcasing the supply chain via an app
Main Implications of the Internet for
Place
Place of purchase
New channel structures
Channel conflicts
Virtual organisations
Let’s take a look at each one…
Place 1 – place of purchase
A. Seller-controlled sites are those that are the main site of the supplier company which are e-commerce enabled.
B. Seller-oriented sites are controlled by third parties, but represent the seller rather than providing a full range of options. C. Neutral sites are independent evaluator intermediaries or aggregators that enable price and product comparison and
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