Copyright 2005 Prentice- Hall, Inc.

Distributing Products Chapter 12 Distributing Products

Copyright 2005 Prentice- Hall, Inc. Chapter Outline The Distribution Mix Wholesaling Retailing Physical Distribution Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Intermediaries Wholesaler- Sells Products To Retailers For Re-Sale Retailer- Sells Products Directly To Consumer Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Channels Distribution- Network Through Which Product Passes On Its Way To The End User Direct Copyright 2005 Prentice- Hall, Inc.

Channels Of Distribution Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Direct Distribution No Intermediaries Producer Uses Own Sales Force Used By Many Internet Companies Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Retail Distribution Producer Sells To Retailer Growing Area In Internet Sales Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Wholesale To Consumer Once Most Prevalent Nondirect Method Requires Large Amount Of Floor Space Space Is Too Expensive Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Sales Agents/Brokers Agents/Brokers Represent Producer Agents/Brokers Paid On Commission Agents May Represent Several Similar Producers/Product Lines Copyright 2005 Prentice- Hall, Inc.

Nondirect Distribution Pros Intermediaries Provide Added Value Value Grows With Each Link Cons Markup At Each Link In Chain Higher Consumer Prices Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Value-Adding Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Agent Distribution Agent Is Sole Intermediary Agent Distributes To Consumer & Business Copyright 2005 Prentice- Hall, Inc.

Industrial Distribution Usually Direct From Producer To Industrial Buyer Goods Usually Purchased In Large Quantities Copyright 2005 Prentice- Hall, Inc.

Wholesale Distribution Of Industrial Products Used Mostly For Accessory Equipment Intermediaries Breakdown Large Quantities To Manageable Size Copyright 2005 Prentice- Hall, Inc.

Wholesale Distribution To Business Retailers Intermediaries Similar To Traditional Wholesalers Consumers Use Discount Stores That Buy In Volume And Sell In Small Quantities With Small Markup Copyright 2005 Prentice- Hall, Inc.

Distribution Strategies Intensive Selective Exclusive Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Channels Conflict- Channel Members Disagree About Roles/Rewards Leadership/Captain- Most Powerful Member of Distribution Channel Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Merchant Wholesalers Full-Service Limited-Function Drop Shippers Rack Jobbers Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Agents/Brokers Independent Representatives Work On Commission Do Not Take Ownership Or Possession Have Extensive Knowledge Of Market Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. E-Intermediary Functions Collect Information About Sellers For Consumers Deliver Internet Products To Buyers Syndicated Sellers Shopping Agents Business-to-Business Brokers Copyright 2005 Prentice- Hall, Inc.

Product Line Retailers Department Stores Supermarkets Specialty Stores Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Bargain Retailers Discount Houses Catalog Showrooms Factory Outlets Warehouse/Wholesale Club Convenience Stores Copyright 2005 Prentice- Hall, Inc.

Nonstore/Electronic Retailing Direct-Response Retailing Mail Order- Catalog Telemarketing Direct Selling- Door To Door Multilevel Marketing Copyright 2005 Prentice- Hall, Inc.

Small Business & The Web Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Electronic Retailing E-Catalogs Electronic Storefront Cybermalls Interactive Marketing Video Marketing Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Types Of Warehouses Private- Owned By Single Manufacturer, Wholesaler, Retailer Public- Independently Owned & Operated Storage- Used For Extended Periods Distribution Centers Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Warehousing Costs Inventory Control Materials Handling Copyright 2005 Prentice- Hall, Inc.

Factors In Selecting Transportation Mode Cost Nature Of Product Distance Speed Customer Wants/Needs Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Transportation Modes Trucks Railroads Planes Water Pipelines Copyright 2005 Prentice- Hall, Inc.

Transportation Modes Changes Intermodal- Birdyback Containerization Distribution & E-Customer Satisfaction- Order Fulfillment Copyright 2005 Prentice- Hall, Inc.

Copyright 2005 Prentice- Hall, Inc. Transportation- Hubs Supply-Side Prestaging Distribution Copyright 2005 Prentice- Hall, Inc.