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Copyright by Paradigm Publishing, Inc. INTRODUCTION TO BUSINESS CHAPTER 13 Distributing Products.

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Presentation on theme: "Copyright by Paradigm Publishing, Inc. INTRODUCTION TO BUSINESS CHAPTER 13 Distributing Products."— Presentation transcript:

1 Copyright by Paradigm Publishing, Inc. INTRODUCTION TO BUSINESS CHAPTER 13 Distributing Products

2 Midterm Average: 83% Range: 90-100 (2) – 13 80-90 - 9 70-80 - 6 below - 5 Office Hours tomorrow 10-noon SBA 434

3 Marketing Plan Outline – more depth Target Market (Be specific: research and cite) Promotional Budget Library : Citations (8-10 MLA) Professionalism (detail and grammar) DUE???? Group Evaluation – one sheet, you average yourselves, build consensus, add comments. Sample with comments

4 Copyright by Paradigm Publishing, Inc. Channels of Distribution Direct channel: producer of a product deals directly with customers. One-Level Channel: one marketing intermediary is between the producer and the customer. Two-Level Channel: two marketing intermediaries are between the producer and the customer.

5 Comparison of Common Distribution Systems Copyright by Paradigm Publishing, Inc.

6 Channels of Distribution Factors that Determine the Optimal Channel of Distribution Ease of Transporting Degree of Standardization Internet Orders

7 Copyright by Paradigm Publishing, Inc. Selecting the Degree of Market Coverage Market Coverage: the degree of product distribution among outlets. 1.Intensive Distribution: the distribution of a product across most or all possible outlets. 2.Selective Distribution: the distribution of a product through selected outlets. 3.Exclusive Distribution: the distribution of a product through only one or a few outlets.

8 Alternative Degrees of Market Coverage Copyright by Paradigm Publishing, Inc.

9 Selecting the Transportation Used to Distribute Products Truck Rail Air Water Pipeline Additional Transportation Decisions

10 Copyright by Paradigm Publishing, Inc. How to Accelerate the Distribution Process Streamline the Channels of Distribution Use of the Internet for Distribution Integrate the Production and Distribution Processes

11 Background on Wholesalers For a manufacturer, one benefit of using a wholesaler is that the wholesaler may be willing to store large inventories in its warehouse. Consequently, the manufacturer does not have to worry about storage. Copyright by Paradigm Publishing, Inc.

12 Background on Wholesalers How Wholesalers Serve Retailers Warehousing Promotion Displays Credit Information

13 Copyright by Paradigm Publishing, Inc. Vertical Channel Integration Vertical Channel Integration: two or more levels of distribution are managed by a single firm. Vertical Channel Integration by Manufacturers Vertical Channel Integration by Retailers


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