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MARKETING THROUGH DISTRIBUTION
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. © South-Western Publishing
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The Importance of Distribution Activities
Distribution as an economic concept Free Enterprise Economic Utility Distribution as a marketing mix element Locations and Methods © South-Western Publishing
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ASSEMBLING CHANNELS OF DISTRIBUTION
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. © South-Western Publishing
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The Need for Distribution Channels
Adj diffs between producers & consumers Differences in quantity (Thousands produced but how many do you buy?) Differences in assortment (choice and variety) Differences in location( consumers do not live in one location) Differences in timing of production and consumption( Home Depot is open year round but do they sell snow blowers year round??) Providing marketing functions & Increasing marketing efficiency © South-Western Publishing
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Planning and Managing Channels of Distribution
Channel participants Channel members Direct channel Indirect channel Developing and managing a channel system Applying the marketing concept © South-Western Publishing
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Multiple Channels of Distribution
Carpet Manufacturer National Carpet Retail Chain Small Home Decorating Store Independent Carpet Installer Builder Wholesaler © South-Western Publishing
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WHOLESALING 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. © South-Western Publishing
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Who Needs Wholesaling? Wholesale benefits
Wholesale activities – buying, selling, transporting and storing Wholesale clubs – Sam’s Costco, BJs © South-Western Publishing
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The Changing Role of Wholesalers
Access to markets Specialized services – data, storing 24 hour ordering (TECHNOLOGY!) © South-Western Publishing
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RETAILING 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. © South-Western Publishing
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Types of Retailers Product mix
Limited-line stores – Cake in Lex Center Mixed merchandise stores – Best Buy Superstores - Walmart Location Convenience stores Shopping centers –Strips, neighborhood centers, Regional Stand-alone stores Non-store retailing - Dell © South-Western Publishing
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How Is Retailing Changing?
Changing types of retailers The growth of franchising Increased use of technology – we talked a lot about this The global marketplace © South-Western Publishing
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PHYSICAL DISTRIBUTION KEEPS THINGS MOVING
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. © South-Western Publishing
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The Importance of Transportation
Railroads Trucks Ships and boats Airplanes Pipelines Combining methods © South-Western Publishing
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Storage and Product Handling
Warehouses Distribution centers Packaging © South-Western Publishing
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Information Processing
Order processing Inventory control © South-Western Publishing
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