Do Now Exercise. Marketing I Mr. Gallucci Lesson 43 Obj. Introduce distribution planning and “control vs. cost” – Case Study Assessment.

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Presentation transcript:

Do Now Exercise

Marketing I Mr. Gallucci Lesson 43 Obj. Introduce distribution planning and “control vs. cost” – Case Study Assessment

Distribution Planning Obj. Introduce distribution planning and “control vs. cost” – Case Study Assessment Distribution Planning Physical movement of product Transfer of ownership from producer to consumer Decisions: Multiple Channels? Control vs. Cost, Distribution Intensity, and e-commerce.

Multiple Channels Satisfying both industrial and consumer markets. (industrial customer: An entity that buys a product with the intent to use it for operating a business) Using multiple distribution channels to maximize availability of product (and profit) Obj. Introduce distribution planning and “control vs. cost” – Case Study Assessment

Cost vs. Control Control: The amount of control a business keeps over the distribution of it’s products Cost: How much it will cost to distribute the product… effects profitability Control up, Cost up… vice versa. Obj. Introduce distribution planning and “control vs. cost” – Case Study Assessment

Cost vs. Control Sales Force Internal (direct) sales force Company has control over sales force. Associates on payroll, benefits, expenses. Agent (external) sales force Company loses control over sales force Cost significantly less than hiring sales force Cost of sale consistent to sales generated Obj. Introduce distribution planning and “control vs. cost” – Case Study Assessment

Cost vs. Control On who’s terms? Manufacturer must determine who to do business with Larger retail stores (Walmart, Home Depot) are dictating terms of distribution to manufacturers Could drive up price of distribution Could drive manufacturer away from “giants” Obj. Introduce distribution planning and “control vs. cost” – Case Study Assessment

Activity Obj. Introduce distribution planning and “control vs. cost” – Case Study Assessment