1. ???? What advantages and disadvantages do an actual (physical) retail store give a company?

2. 7 Core Functions

4. Channel Management

5. 4 Ps

6. Distribution How does the product get to the customer?

7. Channel of Distribution The path a product takes from the producer/manufacturer to the final user. – Industrial user – Consumer – Both?

8. Channel Members Intermediaries Intermediaries (middlemen) – businesses that are involved in sales transactions that move products from the manufacturers to the final users Think about if Apple sold only to individuals… what would be the advantage of selling to a retail store?

9. Ownership? These intermediaries (middle men) are classified based on whether or not they TAKE OWNERSHIP of the goods. Merchant 1. Merchant intermediaries- TAKE OWNERSHIP Agent 2. Agent intermediaries- DO NOT take ownership; receive sale commissions

10. Channel Members (merchant intermediaries) WHOLESALERSRETAILERS Rack JobbersDrop ShippersBrick and Mortar E-tailers

11. Merchant Intermediaries: (two major types:) 1. Wholesalers (aka distributors)- businesses that buy in large quantity; store the goods; resell the goods TO RETAILERS. A. Rack jobbers manage inventory and merchandising; fill shelves; maintain displays; bill retailer for products sold B. Drop Shippers still own the products, but they don’t physically handle the product (coal, lumber, chemicals, etc); drop shippers sell the goods and have the producer ship the good directly to the customer.

12. Merchant Intermediaries: (two major types:) 2. Retailers- sell goods to the final consumer for personal use A.Brick and mortar retailers (traditional) sell goods to customers from a physical store; these retailers buy the products from the manufacturer (non-store retailing: online, mail, catalog, tv, vending machines) B.E-tailers sell the products online

13. Channel Members (agent intermediaries) Independent Manufacturer Representatives Brokers Related products; different manufactures; commission; not on co. payroll Brings buyers and sellers together; negotiators; no continued relationship; commission

14. Distribution Intensity

15. Illustrates how widely a product will be distributed

16. 3 Levels of Distribution Intensity 1. exclusive - distribution in a protected area. – ONE outlet within a controlled area to sell a specific product – A lot of control and very high profit margins – A LOT of control over the adv/marketing/cust service – High end items – Ex: Luxury cars

17. 3 Levels of Distribution Intensity 2. SELECTIVE- A limited number of outlets in a given geographic area sell a particular product These outlets have good credit and strong marketing NOT the general public Ex: Vera Wang, Armani

18. 3 Levels of Distribution 3. intensive - as many outlets as possible to sell a product = COMPLETE MARKET COVERAGE WHY would this make sense based on what we have already talked about? What kind of products are we talking about?

19. https://www.youtube.com/watch?v=4yefGOif 2WU 1997 https://www.youtube.com/watch?v=4yefGOif 2WU https://www.youtube.com/watch?v=xBIVlM4 35Zg https://www.youtube.com/watch?v=xBIVlM4 35Zg