Chapter 15
Distribution-4 bananas
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Table of Contents
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Essential to have physical accessWhy accessibility to the target
market is important?
Physical access to chosen markets is absolutely essential if
marketers are to achieve their ultimate goal of profit. Essentially
a business needs to be able to target its promotional and
distribution efforts towards a particular chosen market
segment.
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Physical Access to Chosen MarketsHow to access the target
market?
The segment information must be obtained easilyMarketers need to
be able to easily obtain information about the segment so that they
can deliver a marketing mix that will meet the target markets
needs, including appropriate distribution.
Target market must be large enoughIt is also important for the
chosen target market to be large enough to ensure a profit for the
business.
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Alternative distribution channelsIn-store & non-store
marketing complement
In-store & non-store marketing can complement each other. In
many cases, instead of having the goods delivered, the retail
shopper will take them home themselves, compensating somewhat for
the need to provide a special retail outlet.
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Alternative distribution channels (con)Means of distribution for
direct marketing will also depend on the form that the purchased
goods or services take. e.g. if the purchase is a hair cut and
style, the notification or coupon for redemption may be sent via
ordinary mail, the web or email. However, the delivery of actual
service will most likely be in salon. The salon would need to be
physically accessible to the chosen target market segment. Many
entrepreneurial intermediaries adopt the two channel system. e.g.
Pizza Hut A company having more than one option for distribution
depending on accessibility of the chosen market and its distance
from the ordering and storage centre. e.g. Pizza Hut
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Demographics & DistributionDemographics Influence the nature
of customers needsInfluence choice of distribution channels
Yong group and old people DINKs dual income no kidsEmpty
nesters--RORFs retired old rich folksUrban migration Distribution
channels to cope with urban spread
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Mail optionsBDMSbulk direct mail servicesBPMSbulk pre-sorted
mail serviceAdvertising mail discountHousehold delivery servicePAF-
postal address file DPID- delivery point identifier The structure
of information stored within the barcode
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Quality addressingCentral to the success of bar-coding is the
concept of quality addressing.
Benefits of quality addressingBecause of enhanced accuracy of
addressing, there will be a reduction in the amount of return to
sender mail. This naturally diminishes wastage on production and
postage.Quality addressing will enhance the ability of businesses
to household match their mail communications.As of April 2000,
companies who lodge Pre-sort bar-coded mail have cheaper mail
prices Because of better prospect selection, companies using
quality addressing will have increased response rates
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Quality addressing (contd)Benefits of quality addressingThe data
quality is of a very high standard, thus data management costs will
be lowerThe envelope will be freed up to permit greater
creativityThis system will process mail much faster and therefore
delivery can be relied upon to be sooner than without the system.
it will also ensure more accurate delivery.Bar-coded letters avoid
several sorting processes common to non bar-coded system, thus
saving time and money.
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How to barcode?Barcode(AMAS)
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Application SnapshotHow to barcode?
There are three main steps to barcoding letters:The first step
is to identify and modify your customer database to store the DPID
as a fixed and mandatory part of the address file structure for
each record.The second step is to validate address information.The
third step is to print the barcode.
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The address matching approval system (AMAS)There are three basic
choices to in how to barcode your mail yourself:
develop AMAS-approved address matching software yourselfpurchase
AMAS-approved address matching software from a third partyuse
outsourced bureau services for address matching
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Outsourcing to skilled operators Depends on locations and
accessibility of customers, size, shape and/or weight of goods,
fragility or perishability of goods, need for security in
transportation among other things. Direct marketers may use more
than one delivery service e.g. air transport for urgent; overnight
deliveries to distant regions May use inter-modal (two or more
modes of transport systems)
May need understanding of Customs and Excise regulations
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Electronic DistributionElectronic data interchange (EDI)Download
from the InternetTransmission of information, pictures, music and
other dataElectronic data interchange (EDI) can be use
for:E-ticketing for airlines Where the booking is made and paid for
over one electronic medium and the verification is sent via email
or message to the customer. The customer only has to pick up their
seat allocation at the airport. Maybe used for bills of lading
exchange, freight billing, funds transfer, software and so on
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Summary
The marketer must know their target market. To do this well they
need to get close to the market. That means they need to access
their target market to find its needs. The demographic of a market
can also help determine the forms of distribution likely to appeal.
Australian consumers are still relatively in their infancy as
catalogue or mail order buyers. It shows the different distribution
can be accept by different people.The new Australia post postal
address file (PAF) will bring large efficiencies to the postal
system. The super mailers will gain the benefits of cost savings
plus faster delivery of their mail. Perhaps more importantly,
outsourcing brings with it the expertise of skilled operator in
these areas.Electronic transmission distribution is still
relatively unexplored.
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