MARKETING MARKETING © South-Western Thomson CHAPTER 13 Get the Product to Customers 13.1 Marketing Through Distribution 13.2 Assembling Channels of Distribution 13.3 Wholesaling 13.4 Retailing 13.5 Physical Distribution Keeps Things Moving

MARKETING MARKETING © South-Western Thomson 2 MARKETING THROUGH DISTRIBUTION GOALS GOALS for Lesson 13.1 Explain why the distribution function is so important to effective marketing. Illustrate how a well-planned distribution system supports the marketing plan.

MARKETING MARKETING © South-Western Thomson 3 The Importance of Distribution Activities Distribution as an economic concept Distribution as a marketing mix element

MARKETING MARKETING © South-Western Thomson 4 Development of a Distribution System Disappointing results Decision time

MARKETING MARKETING © South-Western Thomson 5 ASSEMBLING CHANNELS OF DISTRIBUTION GOALS GOALS for Lesson 13.2 Identify the differences between producers and consumers that are addressed by distribution channels. Describe the differences between direct and indirect channels of distribution.

MARKETING MARKETING © South-Western Thomson 6 The Need for Distribution Channels Adjusting differences between producers and consumers Differences in quantity Differences in assortment Differences in location Differences in timing of production and consumption Providing marketing functions Increasing marketing efficiency

MARKETING MARKETING © South-Western Thomson 7 Planning and Managing Channels of Distribution Channel participants Channel members Direct channel Indirect channel Developing and managing a channel system

MARKETING MARKETING © South-Western Thomson 8 Consumers Multiple Channels of Distribution Builder National Carpet Retail Chain Small Home Decorating Store Independent Carpet Installer Wholesaler Carpet Manufacturer

MARKETING MARKETING © South-Western Thomson 9WHOLESALING GOALS GOALS for Lesson 13.3 Describe the benefits that wholesalers provide to other members of a channel of distribution and to final consumers. Explain how the role of wholesalers is changing in an economy where many of their traditional retail customers prefer to deal directly with manufacturers.

MARKETING MARKETING © South-Western Thomson 10 Who Needs Wholesaling? Wholesale benefits Wholesale activities Wholesale clubs

MARKETING MARKETING © South-Western Thomson 11 The Changing Role of Wholesalers Access to markets Specialized services

MARKETING MARKETING © South-Western Thomson 12RETAILING GOALS GOALS for Lesson 13.4 Define retailing and describe ways to distinguish various types of retailers. Describe ways that retailing is changing in response to changes in consumer preferences and the business environment.

MARKETING MARKETING © South-Western Thomson 13 Types of Retailers Product mix Limited-line stores Mixed merchandise stores SuperstoresLocation Convenience stores Shopping centers Stand-alone stores Non-store retailing

MARKETING MARKETING © South-Western Thomson 14 How Is Retailing Changing? Changing types of retailers The growth of franchising Increased use of technology The global marketplace

MARKETING MARKETING © South-Western Thomson 15 PHYSICAL DISTRIBUTION KEEPS THINGS MOVING GOALS GOALS for Lesson 13.5 Describe the various means by which products are transported within a channel of distribution. Explain the common options for storing and handling products while they are moving through the distribution channel. Examine the importance of order processing and inventory control to the overall effectiveness of a physical distribution plan.

MARKETING MARKETING © South-Western Thomson 16 The Importance of Transportation Railroads Trucks Ships and boats Airplanes Pipelines Combining methods

MARKETING MARKETING © South-Western Thomson 17 Storage and Product Handling Warehouses Distribution centers Packaging

MARKETING MARKETING © South-Western Thomson 18 Information Processing Order processing Inventory control