Product distribution (or place) is one of the four elements of the marketing mix. An organization or set of organizations (go-betweens) involved in the process of making a product or service available for use or consumption by a consumer or business user. The other three parts of the marketing mix are product‚ pricing‚ and promotion. The distribution channel Distribution is also a very important component of Logistics & Supply chain management. Distribution in supply chain management refers to
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12 Distribution Channels and Logistics Management 12.1 The nature of distribution channels Why are marketing intermediaries used? Why use intermediaries? Means giving up some control over how and to whom products are sold – They are used because they have greater efficiency in making goods available to target markets – Contacts‚ experience‚ specialization‚ scale of operation – N-to-M direct selling‚ N-to-1 + 1-to-M through channel – Producers make narrow assortments in large quantities
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group will be at stake!) 1. The marketing channel for Mary Kay Cosmetics is called a “direct selling” channel. The company uses a sales force of over 1‚000‚000 Independent Beauty Consultants around the world. These Consultants are not employees of Mary Kay Corporation; they buy cosmetics from the company at a wholesale price and sell at a retail price to end-users. They maintain personal relationships with their end-user consumers‚ and deliver product to them after it is ordered; it is a high-service
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SHISEIDO Shiseido was founded in 1872 in Japan. It is one of the oldest cosmetic companies in the world‚ and fourth largest cosmetic company. It started to export its products in 1929. Shiseido was the first to develop the softening lotion‚ a lightweight liquid of toner-like consistency. Their hydro powder eye shadows which have a creamy texture are among top beauty picks Therefore the company has had the advantage of being one of the first movers. This is one of the reasons why Shiseido’s products
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DLM QUESTIONS Questions to Marketing Manager 1. What kind of a bulk breaking strategy is followed by Sony to reduce the cost to the end user? 3 2. What type of channel intensity is followed by Sony? 2. 3. What kind of strategy if followed by Sony in case immediate unforeseen delivery of products is required? 4 4. Sony prefers direct dealing and distribution to its customers or through dealers? 1. 5. Which is the most important parameter for Sony out of the following
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Table of Contents Sr. No. | Title | Page Number | 1 | Introduction | 2 | 2 | Distribution Channels Structure | 2 | 3 | Terms of Appointment and Incentives for Distribution Channels | 3 | 4 | Reporting‚ Control and evaluation system for their sales force | 5 | 7 | Recommendations and Conclusion | 5 | 8 | References & Bibliography | 6 | Introduction: Success toady in the competitive world has become very difficult. This is because it does not solely depend on basic factors but
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Chapter 6 Channels of distribution and logistics LEARNING OBJECTIVES By the end of this chapter you will: n n n n comprehend key elements and decisions in distribution channel design be able to evaluate different configurations of channel structure be familiar with recent trends and developments in channels of distribution appreciate the importance of managing the physical flows of products‚ services and information into‚ through‚ and out of the organization to its customers n grasp the
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Case- Shiseido: Channeling Cosmetics in China 1. Marketing and distribution channels for cosmetics products performed mainly transactional and logistical function. Distribution channels such as the voluntary specialty chain stores perform transactional function when they buy these cosmetic products from the manufacturer and sell them in their individual stores. They share risk with the producer (Shiseido) as they stock merchandises in anticipation for sales. On the other hand‚ counters at departmental
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Distribution Channels of Philips Domestic Appliances and Personal Care Products in Chinese Economic Transition -- A Case Study Don Y. Leea ‚ Gangling Chaob and Weiling Yec aHong Kong Polytechnic University‚ Hong Kong b‚cShanghai University of Finance and Economic‚ China Address for Correspondence: Don Y. Lee PhD Associate Professor of Marketing Department of Business Studie Hong Kong Polytechnic University Hung Hom‚ Kowloon Hong Kong Special Administrative Region China Telephone: 852-2766-7119 Facsimile:
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distribution - channel strategy The following table describes the factors that influence the choice of distribution channel by a business: Influence | Comments | Market factors | An important market factor is "buyer behaviour"; how do buyer’s want to purchase the product? Do they prefer to buy from retailers‚ locally‚ via mail order or perhaps over the Internet? Another important factor is buyer needs for product information‚ installation and servicing. Which channels are best served to provide
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