1. Small Business Distribution and Location
Chapter 11
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2. Learning Objectives
LO1 Recognize the different types of direct marketing and their pros and cons.
LO2 Learn how to do non-direct distribution.
LO3 Differentiate the types of international strategies.
LO4 Identify the factors to consider in selecting your business location.
LO5 Recognize the key issues in leasing.
LO6 Know what to look for in evaluating a potential site layout.
LO7 Understand the pros and cons of buying, building, or leasing.
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3. Distribution Manufacturers’ suggested retail price
A target price set by a manufacturer for a product or service intended to provide profit for each intermediary in the distribution channel.
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4. Distribution Direct sales
Methods of going directly to your customer in order to sell your product.
Vending machines, door-to-door salespeople, leasing space at a craft fair, farmers’ markets, party sales, and most industrial sales
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5. Distribution Direct marketing
Selling your goods or services to consumers without intermediaries, typically to select customer groups and typically with tracking of the results.
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6. Direct Mail and Its Variants
Microinventory
A set of goods or service that consists of only one or a few items.
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7. Direct Mail and Its Variants
Just-in-time inventory
Having just enough product on your shelves to meet the immediate purchases.
Usually requires frequent shipment from your supplier.
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8. Direct Marketing Guerilla marketing
The use of creative and relatively inexpensive ways to reach your customer.
Examples include door-knob hangers, flyers under windshield wipers, T-shirts, balloons, and messages written on sidewalks.
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9. Distribution Issues for Direct Marketing
Fulfillment center
A company that will warehouse your products and fill your customers’ orders for you.
Retailer
A middleman business which sells to consumers or end-users of a product (typically in single or small quantities).
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10. Nondirect Distribution
e-tailer
An electronic retailer; a store that exists only on the Internet.
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11. Exporting Freight forwarders
Firms specializing in arranging international shipments—packaging, transportation, and paperwork.
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12. Government Sources of Export Assistance
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13. Typical Manufacturing Layout
Figure 11.2
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14. Typical Retail Layouts
Figure 11.3
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15. Build, Buy, or Lease
Leasing is an option with a considerably lower initial cash outlay
Often the only feasible choice
Lease expenses are deductible business expenses
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