Business 100 Introduction to Business Dr. Kathy Broneck.

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Presentation transcript:

Business 100 Introduction to Business Dr. Kathy Broneck

Review Marketing a Product Branding Product Development Pricing a Product

Preview Retailing Distribution Consumer Shopping Habits Supply Chain Management

Channel of Distribution Marketing Intermediaries Wholesaler Retailer Agents/Brokers Role of Intermediaries Create Efficiency Value vs. Cost

Utility for Consumers Form Time Place Information Possession Service

Wholesale Intermediaries Merchant Wholesalers Full-Service Limited-Function Rack Jobbers Cash-and-Carry Drop Shippers Business to Business (B2B)

They All Started in 1962 Company1 st StoreObjective Wal-Mart Rogers, Ark. July 1962 Slash prices. Makeup difference in volume Target Roseville, MN May 1962 Discount retailer with strong sense of value Kmart Garden City, MI March 1962 Bring discount store concept to suburban malls Source: Business 2.0, June 2003, p. 38.

Identify a Retailer in Your Area Supermarket Convenience Store Discount Store Department Store Category Killer Specialty Store Factory Outlet Superstores Catalog Showroom

Is It Becoming a Wal-Mart World? *There are 3,400 stores in the U.S. Source: Source: Wal-Mart Annual Report 2003

The Wheel of Retailing PassageofTime 2. Retail Outlet 1. Retail Outlet Starts 3. Retail Outlet 4. New Outlet Enters  Adds Service  Raises Prices  Better Location  Adds Service  Raises Prices  Better Location  Low Price  Limited Service  Out-of-way Location  Low Price  Limited Service  Out-of-way Location  Higher Prices  Higher Status  Higher Prices  Higher Status  Low Price  Limited Service  Low Price  Limited Service

Retail Store Distribution Intensive  Selective  Exclusive

Non-Store Distribution E-tailing Telemarketing Vending Machines, Kiosks, Carts Direct Selling Multilevel Marketing Direct Marketing

Why People Don’t Shop Online 1. It isn’t secure 2. It will jeopardize my privacy 3. Usually must pay shipping charges 4. Not enough selection 5. Can’t touch/try things first 6. No satisfaction guarantee 7. Returns are a hassle 8. Won’t arrive on time 9. Hard to find things online 10. Enjoy getting out of house to shop Source: blink,

Necessary Website Features Source: “Dreaming of a Green Christmas”, Newsweek, November 11, 2002, p. E24

Channel Cooperation Corporate Distribution Contractual Distribution Administered Distribution Supply Chain Management

The Supply Chain

Logistics  Physical Distribution  Inbound  Materials  Outbound  Reverse  Information

Transportation & Storage Modes Railroad Motor Vehicles Water Pipeline Air Intermodal Warehousing Storage Distribution