1. © Prentice Hall, 2007 Excellence in Business, 3eChapter 14 - 1 Distribution Strategies

2. © Prentice Hall, 2007 Excellence in Business, 3eChapter 14 - 2 Marketing Intermediaries RetailersWholesalers

3. © Prentice Hall, 2007 Excellence in Business, 3eChapter 14 - 3 Wholesalers and Retailers Utility Value Place Time Possession

4. © Prentice Hall, 2007 Excellence in Business, 3eChapter 14 - 4 Seven Roles of Marketing Intermediaries Transport and Store Products Transport and Store Products Gather Assortment of Goods Gather Assortment of Goods Assume Risks Provide Financing Provide Market Information Provide Market Information Match Buyers and Sellers Match Buyers and Sellers Provide Promotion and Sales Support Provide Promotion and Sales Support

5. © Prentice Hall, 2007 Excellence in Business, 3eChapter 14 - 5 How Intermediaries Simplify Commerce

6. © Prentice Hall, 2007 Excellence in Business, 3eChapter 14 - 6 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

7. © Prentice Hall, 2007 Excellence in Business, 3eChapter 14 - 7 Benefits of Retailers Save Time Save Money Build Traffic Add Convenience

8. © Prentice Hall, 2007 Excellence in Business, 3eChapter 14 - 8 Types of Retail Stores Limited Products Limited Products Extensive Selection Extensive Selection Specialty Store Customer Services Customer Services Wide Variety Wide Variety Department Store Category Dominance Category Dominance Wide Variety Wide Variety Category Killer Lower Prices Lower Prices Wide Variety Wide Variety Discount Store

9. © Prentice Hall, 2007 Excellence in Business, 3eChapter 14 - 9 Retail Industry Challenges Oversupply of Store Space ConsumerDemographicsWeakenedEconomy Nonstore Retailing and E-Commerce

10. © Prentice Hall, 2007 Excellence in Business, 3eChapter 14 - 10 E-Commerce and Non-Store Formats Clicks-Only Internet Clicks-and-Bricks Mail-Order Firms Automatic Vending Interactive Kiosks

11. © Prentice Hall, 2007 Excellence in Business, 3eChapter 14 - 11 Retailing Innovations Retail Theater MultichannelRetailing Pop-Up Stores Hybrid Formats

12. © Prentice Hall, 2007 Excellence in Business, 3eChapter 14 - 12 Setting Distribution Strategies Distribution Mix Marketing Practices Customer Needs and ExpectationsProductSupportRequirementsSegmentation,Targeting,PositioningCompetitor’sDistributionChannelsEstablishedIndustryPatterns Type of Product

13. © Prentice Hall, 2007 Excellence in Business, 3eChapter 14 - 13 Distribution Channel Length Consumer Business User Business User Consumer Goods and Services Business Goods and Services Producer Agent/Broker Wholesaler Retailer ProducerWholesaler

14. © Prentice Hall, 2007 Excellence in Business, 3eChapter 14 - 14 Channel Selection MarketCoverageMarketCoverage CostCost ControlControl ChannelConflictChannelConflict

15. © Prentice Hall, 2007 Excellence in Business, 3eChapter 14 - 15 Market Coverage Distribution Convenience Goods and Organizational Supplies Expensive Technical or Specialty Products IntensiveSelectiveExclusive

16. © Prentice Hall, 2007 Excellence in Business, 3eChapter 14 - 16 Cost Factors Selling Storage Distribution

17. © Prentice Hall, 2007 Excellence in Business, 3eChapter 14 - 17 Control Issues How Goods Are Sold in the Marketplace How Goods Are Sold in the Marketplace ChannelLength OverallControl LongerShorter LessMore

18. © Prentice Hall, 2007 Excellence in Business, 3eChapter 14 - 18 Channel Conflict Inadequate Product Support Too Many Intermediaries Multiple Sales Channels

19. © Prentice Hall, 2007 Excellence in Business, 3eChapter 14 - 19 Managing Physical Distribution In-House Operations Outbound Transportation

20. © Prentice Hall, 2007 Excellence in Business, 3eChapter 14 - 20 In-House Operations Forecasting Order processing Inventory control Warehousing Materials handling

21. © Prentice Hall, 2007 Excellence in Business, 3eChapter 14 - 21 Outbound Transportation Rail Truck Water Air Pipeline Mode Average Lower Higher Average Cost Lower Average Higher Lower Higher Lower Higher Lower Average Higher Average Higher Average Lower Higher Lower FlexibilityCapacityReliabilitySpeed