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Distribution and Logistics

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Distribution and Logistics
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      Copyright 1999 Prentice Hall 12-1 Chapter 12 Distribution Channels and Logistics Management PRINCIPLES OF MARKETING Eighth Edition Philip Kotler and Gary Armstong      Copyright 1999 Prentice Hall 12-2 What is a Distribution Channel? ã A set of interdependent organizations (intermediaries) involved in the process of making a product or service available for use or consumption by the consumer or business user. ã Channel decisions are among the most important decisions that management faces and will directly affect every other marketing decision.      Copyright 1999 Prentice Hall 12-3 Why are Marketing Intermediaries Used? ã Greater efficiency in making goods available to target markets. ã Offer the firm more than it can achieve on it’s own through the intermediaries:    – Contacts  – Experience  – Specialization  – Scale of operation ã Match supply and demand.      Copyright 1999 Prentice Hall 12-4 Distribution Channel Functions Contact Financing Information Risk Taking Promotion Matching Negotiation Physical Distribution ã   All Use Up Scarce Resources ã  All May Often Be Performed Better Through Specialization ã  All Can Often Be Shifted Among Channel Members
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