TOPIC 9 DISTRIBUTION CHANNELS*

DISTRIBUTION CHANNELS - Definition*

*DIRECT CHANNELRETAIL CHANNELWHOLESALE CHANNELPlease refer to Figure 9.1 in module

Multi-Channel Distribution*Please refer to Figure 9.2 in module

FACTORS IN SELECTING CHANNELS*

CHANNEL FUNCTIONS*

CHANNEL POWERAbility of a channel member to make other members do what they will not usually do*

CHANNEL MANAGEMENTCooperate; Do what you can perform best*

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STORE RETAILING (a) Types of Retail Shops*Shop Retailing- Varies by number of products and choices

STORE RETAILING (a) Types of Retail Shops*

TypeDescriptionShop RetailingVarious forms that differ by number of products and number of choices for each product, as belowSpecialty Shops Limited and deep line of products Computer, bicycle, watch, jewellery shops Departmental Stores Various product lines, each by different company AEON, Metrojaya, Parkson, Convenience/ Sundry Shops Various consumer products, nearby housing areas 7-Eleven, Speedmart, K-MartSupermarkets Larger, wider variety of products Located away from housing areas, in city centres AEON, Bintang, The Store, Hypermarkets Large supercentres, many/cheaper product choices Tesco, AEON Big, Giant, Mydin

NON-STORE RETAILING(b) Types of Non-Store Retailing *

TypeDescriptionDirect MarketingCatalogues, Mail order, Telemarketing, TV marketing, Radio, OnlineCommunicate closely/directly with customers, identify their unique needs

NON-STORE RETAILING(b) Types of Non-Store Retailing *

TypeDescriptionDirect SellingSalespersons/agents to sell productsMulti-level marketing lock-in members as agents

NON-STORE RETAILING(b) Types of Non-Store Retailing *

TypeDescriptionAutomatic Vending MachineSell various products in high traffic areas ATM machines offer banking services

RETAILING(c) Retail Marketing Strategies*

WHOLESALING- Selling products to another intermediary who will resell to end/industrial usersRoles:*

BENEFITS FROM USING INDEPENDENT DISTRIBUTORSEstablished customer baseGood relationships with existing customer baseSales and marketing expertiseExperienced/know how best to sell to customersStorage and logisticsSave cost of storage, move products quickly/cost effectivelyWider distribution channelsNo need for physical presence in each marketLarger group of consumers/salesQuick route to marketProducts can reach consumers fasterMaximise sales and profitability*