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Delivering Value: Distribution Strategies

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Presentation on theme: "Delivering Value: Distribution Strategies"— Presentation transcript:

1 Delivering Value: Distribution Strategies
© Prentice Hall, 2007 Excellence in Business, 3e

2 Marketing Intermediaries
Wholesalers Retailers © Prentice Hall, 2007 Excellence in Business, 3e

3 Wholesalers and Retailers
Unity value Place Time Possession © Prentice Hall, 2007 Excellence in Business, 3e

4 Seven Roles of Wholesalers and Retailers
Match buyers and sellers Provide market information Provide promotional and sales support Gather an assortment of goods Transport and store products Assume risks and provide financing © Prentice Hall, 2007 Excellence in Business, 3e

5 How Intermediaries Simplify Commerce
Reduce prices Reduce contacts Create utility © Prentice Hall, 2007 Excellence in Business, 3e

6 Excellence in Business, 3e
Types of Wholesalers Merchants Agents or Brokers Rack Jobbers Limited-Service Full-Service Drop Shippers Securities Brokers Insurance Brokers Real Estate Agents Manufacturer’s Reps © Prentice Hall, 2007 Excellence in Business, 3e

7 Customers of Retailers
Other retailers Wholesalers Organizations © Prentice Hall, 2007 Excellence in Business, 3e

8 Excellence in Business, 3e
Benefits of Retailers Save time Save money Build traffic Add convenience © Prentice Hall, 2007 Excellence in Business, 3e

9 Excellence in Business, 3e
Types of Retail Stores Specialty store Department store Category killer Discount store © Prentice Hall, 2007 Excellence in Business, 3e

10 Retail Industry Challenges
Excess store space Weakened economy Consumer preferences Nonstore retailing © Prentice Hall, 2007 Excellence in Business, 3e

11 E-Commerce and Non-Store Formats
Clicks-only Internet Clicks-and-bricks Mail-order firms Automatic vending Interactive kiosks © Prentice Hall, 2007 Excellence in Business, 3e

12 Retailing Innovations
Multichannel retailing Hybrid formats Retail theater Pop-up stores © Prentice Hall, 2007 Excellence in Business, 3e

13 Setting Distribution Strategies
Distribution mix Kind of product being sold Marketing practices of the industry © Prentice Hall, 2007 Excellence in Business, 3e

14 Length of Distribution Channels
Producer to consumer Producer to retailer to consumer Producer to wholesaler to retailer to consumer Producer to agent/broker to wholesaler to retailer to consumer Producer to business user Producer to wholesaler to business user © Prentice Hall, 2007 Excellence in Business, 3e

15 Excellence in Business, 3e
Channel Selection Market coverage Cost Control Channel conflict © Prentice Hall, 2007 Excellence in Business, 3e

16 Excellence in Business, 3e
Market Coverage Distribution Intensive Selective Exclusive © Prentice Hall, 2007 Excellence in Business, 3e

17 Excellence in Business, 3e
Market Coverage Distribution Intensive Selective Exclusive © Prentice Hall, 2007 Excellence in Business, 3e

18 Excellence in Business, 3e
Cost Factors Selling Storage Distribution © Prentice Hall, 2007 Excellence in Business, 3e

19 Excellence in Business, 3e
Control Issues Distribution channels Shorter Longer Overall control More Less © Prentice Hall, 2007 Excellence in Business, 3e

20 Excellence in Business, 3e
Channel Conflict Inadequate product support Too many intermediaries Multiple sales channels © Prentice Hall, 2007 Excellence in Business, 3e

21 Managing Physical Distribution
In-house operations Outbound transportation © Prentice Hall, 2007 Excellence in Business, 3e

22 Excellence in Business, 3e
In-House Operations Forecasting Order processing Inventory control Warehousing Materials handling © Prentice Hall, 2007 Excellence in Business, 3e

23 Outbound Transportation
Rail Truck Water Air Pipeline © Prentice Hall, 2007 Excellence in Business, 3e

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