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Logistics & distribution channel


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Logistics & distribution channel

  1. 1. Laura Baranda González 5° MKT
  2. 2. • The process of planning, implementing and efficiently control the flow of materials, storage, in-process inventory, finished products and relevant information from the point of origin to point of consumption, at the lowest possible cost. Laura Baranda González
  3. 3. • Series of activities that must be met to achieve the objectives.• It is an information sistem.• It can be as large or as small as the company wants.• All activities are equally important. Laura Baranda González
  4. 4. • Established by E. Grosvenor Plowman. Right product Right place Right time Right condition Right cost Laura Baranda González
  5. 5. Customer service Comunication Transport Inventory control Shopping Handling returns Storage Plant and warehouse location Laura Baranda González
  6. 6. Warranties & service. Packing Reverse Waste & logistics scrap Purchase orders. Material handling. Demand forecasting Laura Baranda González
  7. 7. • Distribution is the bridge between producers and final consumers.• There are four stages of the distribution:1. Periodic markets.2. Permanent markets.3. Fragmented markets.4. Integrated markets. Laura Baranda González
  8. 8. Periodic markets. Permanent markets.• From the origin to the Middle • Modern age. Ages. • Geographic markets.• Barter. • Markets settled permanently• Merchants have their fairs in certain cities. and markets and religious festivals. Laura Baranda González
  9. 9. Fragmented markets. Integrated markets.• Industrial Revolution. • Crisis of 1929.• They specialize merchants. • Distribution structure. It eliminates the producer- Integration of the trader. different forms of• Focused on production or distribution. distribution. • Producer, wholesaler and retailer. Laura Baranda González
  10. 10. • People or organizations that get products from manufacturers to the consumer. Own the product at the time and facilitating the transfer of ownership of the product. Laura Baranda González
  11. 11. Consumer Storage search Provider searchPrice equilibrium Financing Laura Baranda González
  12. 12. Product approach Services. Obsolescence & deterioration riskPackaging of Promotion Laura Baranda González
  13. 13. Wholesalers.• Purchase products for resale.Commercial.• Products purchase for resale.Retail or retailer.* Purchase products for resale.Agents & brokers• Never own products, but the transfer of rights. Laura Baranda González
  14. 14. a) Determination of prices.b) General conditions of sale.c) Definition of the geographic area.d) Specification of all the details. Laura Baranda González
  15. 15. • It requires a well-organized method for designing channels that satisfy customers and overcome competition. There are 4 choices:1. Specify the distribution function2. Select the type of channel.3. To determine the intensity distribution4. Select specific members of the channel. Laura Baranda González
  16. 16. • a channel strategy should be designed within the context of the overall marketing mix. It reviews the objectives of marketing. Laura Baranda González
  17. 17. • After specifying the distribution function of the overall marketing program, we choose the most suitable channel for the companys product Laura Baranda González
  18. 18. a) Intensive Distribution : Is the case with these types of productsthat are found everywhere, such as cigarettes.b) Exclusive distribution: it is characterized by the grantingof exclusive product distribution to a few distributors, geographicboundaries, but with the express condition thatsuch dealers refrain from selling competing products, as expected.c) Selective distribution: it combines the advantages of the previoustwo, and although it provides a relative weakening of controls thataspires all products, it is also very true that reduces the costsof marketing the products. Laura Baranda González
  19. 19. • Certain companies choose to distribute the product, since there are often many companies to choose from. Laura Baranda González
  20. 20. a) Market factors.• Type of market.• Number of potential buyers.• Geographic concentration of the market.b) Product factors.• Unit value.• perishability.• technical nature of a product.c) Company factors.• Desire to control the channels.• Services given by the seller.• The ability of executives.• Financial resources. Laura Baranda González
  21. 21. • Mitigate the conflict or at least its negative effects. • Increase control of the company within a channel. Horizontal conflict. Conflict between producer & Conflict between producer & wholesaler. retailer.• It takes place between • Manufacturers believe that • Likely to intensify in times of companies located on the wholesalers do not economic crisis. same level of distribution. promote the product aggressively and maintain sufficient inventories. • Services cost too much. Laura Baranda González
  22. 22. Manufacturers can: Retailers can:• Create a strong brand loyalty • Create loyalty to the store• Establish one or more forms • Improve the computerizedof vertical marketing system information systems• Refusing to sell to dealerswho do not cooperate. Laura Baranda González
  23. 23. • Exclusive markenting.• Restrictive contracts.• Refusal to distribute• Policy exclusive territory. Laura Baranda González
  24. 24. Exclusive marketing. Restrictive contracts.a) The manufacturers sales volume It is permissible when:b) Contract • A new company is tryingc) It has been determined that the to enter a market.exclusive distribution ispermissible when: • An exclusive distributor is• There are equivalent products. obliged to sell the full line of• A manufacturer is entering products from the manufacturer,the market and its total is so small but is not prohibitedas to be negligible. from selling the competition. Laura Baranda González
  25. 25. Refusal to distribute. Policy exclusive territory.• provided to select the Are permitted when: channels, a • A company is small producer may refuse to sell. or just entering the market. • A manufacturer establishes a corporate vertical marketing system. • A manufacturer uses independent intermediaries. • Laura Baranda González
  26. 26. • Product distribution (range).• Distribution channel selection• Discrepancies.• Channel functions• Channel structure.• Selection, Administration, Logistics and Marketing. Laura Baranda González
  27. 27. Selection of the distribution Product distribution (range). channel.• This can be: • Coverage of the market: size •Vertical (control functions and potential market value of from start to finish) the desired supply. • Horizontal (very limited, it combines institutions at the • Control: a short channel is same level of operations) better because it provides more control. • Costs: distribution are lower when no intermediaries in the channel. Laura Baranda González
  28. 28. Discrepancies. Channel functions.• Represent additional costs • Transaction (monitoring) of planning • Logistics (Infrastructure) • In many • facilitation (marketing) • Assortment • Temporary • In space Laura Baranda González
  29. 29. Selection, Administration, Structure of the channel. Logistcs & Marketing.• It is different for each • Balance, service and cost type of product. • Physical Distribution Other • Price / Cost options. (Alternate Channel) • Economy of scale • Multiple Channel • Utilities • Standards • Channel nontraditional • Planning • Reverse Channel • Inventories / turnover • Strategic alliance channel • Auctions • Global Marketing Channel • Seasonality • Laura Baranda González
  30. 30. • Logistics allows to create strategic alliances in order to join forces, bringing the best of each company and thus provide a better service.• Logistics is a competitive advantage for businesses, so each day more and more companies make use of it, but also requires technology to improve the information system.• Logistics brings benefits to both, customers and the company, customers get what they want, whenever they want at the price that suits them, in the meantime companies save costs. Laura Baranda González
  31. 31. • It is important to use distribution channels as these help us to make work more efficient, but also requires an analysis of the best structure to carry it out.• Distribution channels save time and money to businesses and customers, using them can be the key to success, a strategy based on logistics should be well planned.• Logistics is a series of activities that guide the company on the right track, primarily deals with the distribution of a product or service. Laura Baranda González
  32. 32. Logisctics & distribution channel. Laura Baranda González