Marketing Management

A set of independent organizations involoved in the process of making a product or service available to its intended market.

• 1) Perform independent activites well through specialization
• 2) Work well together in a system.
• 3) Can protect the system from rival systems-thus creating a comopetitive advantage.

• Increase availability of goods to potential customers.
• Better satisfy the customer.
• Encourage promotional push.
• Allows for transfer of information betweel the FIRM<->MARKET.
• Increases Cost Effectiveness.
• Allows for Flexibility.
• Helps create a Compoetitive Advantage
• Reduces risk to the firm

Consists of interdependent entities that are aligned for the purpose of transferring possession of a product from producer to consumer or business user.

• Facilitated by interactive communication methods.
• Catalog; TV; Internet; Telephone; Door-to-Door
• Direct Response- good for information exchange
• Good if firm has one well identified target market.

• Allows producer to focus on producing.
• Done when retailers are large enough to do wholesaling function themselves (Walmart)
• Selective Distribution- retailer who is not everywhere.

• Low Cost, frequently purchased items
• Packaged foods, health and beauty aids.
• Intensive distribution
• Agents are used when the producer is too small to have sales staff find wholesalers.

Uses more than one path. Allows different consumer segments to get your product.

When different supply chain activities (value) are delivered to customer using a mulit-channel design.

Strategies deal with stimulating demand for the product.

• Push strategies involve the producer stimulating middle-man demand.
• Provide channel members with incentive to buy more product bulk rates, allowances...
• This gives retailers incentive to PUSH your product onto the customer.

• Pull strategies involve the producer stimulating end-customer demand.
• Provide the end-customer with incentive to buy more product- mfg. coupons, buy 1 get 1 free...
• Customers want the product more so reailers buy more to satisfy demand.

Tend to be SHORT

May include a distributor especially in franchise situations

Recall- distribution means getting the product to the place and at the time the customer wants

• Out patient clinics for a hospital
• Restaurant 'kiosks'