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Lecture 15 E-Marketing

Lecture 15 E-Marketing. The Internet for Distribution Instructor: Hanniya Abid Assistant Professor COMSATS Institute of Information Technology. Objectives. After this lecture, you will be able to: Describe the three major functions of a distribution channel.

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Lecture 15 E-Marketing

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  1. Lecture 15E-Marketing The Internet for Distribution Instructor: HanniyaAbid Assistant Professor COMSATS Institute of Information Technology

  2. Objectives • After this lecture, you will be able to: • Describe the three major functions of a distribution channel. • Explain how the Internet is affecting distribution channel length. • Discuss trends in supply chain management and power relationships among channel players. • Outline the major models used by online channel members. • Highlight how companies can use distribution channel metrics.

  3. Dimensions of e-Commerce

  4. Distribution Channel Length and Functions • Channel length refers to the number of intermediaries between the supplier and the consumer. • Direct distribution channels have no intermediaries. • Indirect channels have one or more intermediaries. • Eliminating intermediaries can potentially reduce costs. • Disintermediation describes the process of eliminating traditional intermediaries.

  5. Functions of a Distribution Channel • Channel functions can be characterized as follows: • Transactional • Logistical • Facilitating

  6. Transactional Functions • Transactional Functions include: • Making contact with buyers. • Marketing communication strategies. • Matching products to buyer’s needs. • Negotiating price. • Processing transactions.

  7. Logistical Functions • Logistical functions include physical distribution activities, such as: • Transportation • Inventory storage • Aggregation of products • Logistical functions are often outsourced to third-party specialists such as UPS or FedEx.

  8. RFID • http://www.youtube.com/watch?v=4Zj7txoDxbE

  9. The Last Mile Problem • 25% of deliveries require multiple delivery attempts. • 30% of packages are left on doorsteps, with possibilities for theft. • Innovative firms are introducing solutions. • Smart box. • Retail aggregator model: delivery at convenience stores or service stations. • E-stops, storefronts for customer package pickups. • Order online for offline retail delivery.

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