1. 15-1 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. NickelsMcHughMcHugh Nickels Cover

2. 15-2 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Chapter 1515 Distributing Products Quickly and Efficiently 15-2

3. 15-3 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Channel of Distribution Marketing IntermediariesMarketing Intermediaries –Wholesaler –Retailer –Agents/Brokers Role of IntermediariesRole of Intermediaries –Create Efficiency –Value vs. Cost

4. 15-4 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Utility Form Time Place Possession Information Service

5. 15-5 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Wholesale Intermediaries Merchant WholesalersMerchant Wholesalers –Full-Service –Limited-Function –Rack Jobbers –Cash-and-Carry –Drop Shippers Business to Business (B2B)Business to Business (B2B)

6. 15-6 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Identify a Retailer in Your Area  Supermarket  Convenience Store  Discount Store  Department Store  Category Killer  Specialty Store  Factory Outlet  Superstores  Catalog Showroom

7. 15-7 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Retail Store Distribution IntensiveIntensive  Selective  Exclusive

8. 15-8 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Non-Store Distribution E-tailingE-tailing TelemarketingTelemarketing Vending Machines, Kiosks, CartsVending Machines, Kiosks, Carts Direct SellingDirect Selling Multilevel MarketingMultilevel Marketing Direct MarketingDirect Marketing

9. 15-9 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Channel Cooperation Corporate DistributionCorporate Distribution Contractual DistributionContractual Distribution Administered DistributionAdministered Distribution Supply Chain ManagementSupply Chain Management

10. 15-10 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. The Supply Chain

11. 15-11 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Logistics  Physical Distribution  Inbound  Materials  Outbound  Reverse  Information

12. 15-12 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Transportation & Storage Modes RailroadRailroad Motor VehiclesMotor Vehicles WaterWater PipelinePipeline AirAir IntermodalIntermodal WarehousingWarehousing –Storage –Distribution