Basic Marketing – Chapter 11 Supplementary PowerPoint Archive This is an archive of photos and exhibits from the text and additional graphics and exhibits as referenced in the Basic Marketing Multimedia Lecture Guides. See the Basic Marketing Multimedia Lecture Support Package for additional detail and teaching suggestions. For use only with Perreault/Cannon/McCarthy. These images may not be redistributed or used for any other purpose without permission of the publisher, McGraw-Hill/Irwin, The McGraw-Hill Companies, Inc. William D. Perreault Jr. and E. Jerome McCarthy McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. For use only with Perreault and McCarthy texts. © 2010 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin

Multimedia Lecture Support Package to Accompany Basic Marketing 11-2 Dell Opening Photo Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-2

Exhibit 11-1: Marketing Strategy Planning Decisions for Place 11-3 Exhibit 11-1: Marketing Strategy Planning Decisions for Place Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-3

Multimedia Lecture Support Package to Accompany Basic Marketing 11-4 Iams ad Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-4

Multimedia Lecture Support Package to Accompany Basic Marketing 11-5 Science Diet ad Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-5

Oakley website showing sunglasses and dealer location 11-6 Oakley website showing sunglasses and dealer location Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-6

Multimedia Lecture Support Package to Accompany Basic Marketing 11-7 Unilever’s Agrigel in Spain, Unilever’s Clear Plan website and Unilever products in Vietnam photos Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-7

Unilever’s Agrigel in Spain 11-8 Unilever’s Agrigel in Spain Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-8

Unilever’s Clear Plan website 11-9 Unilever’s Clear Plan website Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-9

Unilever products in Vietnam photos 11-10 Unilever products in Vietnam photos Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-10

Multimedia Lecture Support Package to Accompany Basic Marketing 11-11 Glaceau website Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-11

Levi’s Signature Jeans at Wal-Mart photo 11-12 Levi’s Signature Jeans at Wal-Mart photo Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-12

Amazon warehouse photo 11-13 Amazon warehouse photo Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-13

Peterson channel captain ad 11-14 Peterson channel captain ad Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-14

Multimedia Lecture Support Package to Accompany Basic Marketing 11-15 Electrolux ad Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-15

Multimedia Lecture Support Package to Accompany Basic Marketing 11-16 Exhibit 11-2: How Channel Functions May Be Shifted and Shared in Different Channel Systems Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-16

iPod vending machine photo 11-17 iPod vending machine photo Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-17

Multimedia Lecture Support Package to Accompany Basic Marketing Exhibit 11-3: Characteristics of Traditional and Vertical Marketing Systems 11-18 Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-18

Multimedia Lecture Support Package to Accompany Basic Marketing 11-19 Mothers Work website Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-19

Multimedia Lecture Support Package to Accompany Basic Marketing 11-20 Stihl ad Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-20

Multimedia Lecture Support Package to Accompany Basic Marketing 11-21 ROC ad Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-21

Multimedia Lecture Support Package to Accompany Basic Marketing 11-22 Altoids ad Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-22

Multimedia Lecture Support Package to Accompany Basic Marketing 11-23 Exhibit 11-4: An Example of Multichannel Distribution by a Publisher of Computer Books, Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-23

In-text recycling toner cartridges photo 11-24 In-text recycling toner cartridges photo Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-24

Mercedes-Benz Axor Truck ad 11-25 Mercedes-Benz Axor Truck ad Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-25

Haier ad and Lowe’s website 11-26 Haier ad and Lowe’s website Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-26

Multimedia Lecture Support Package to Accompany Basic Marketing 11-27 GameStop photo Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-27

Place Decisions in the Marketing Mix 11-28 Place Decisions in the Marketing Mix Making products available in the right quantities and locations—when customers want them Channels of distribution (Chapters 11-13) Focus on institutions involved in getting product to the customer Logistics (Chapter 12) Focus on the physical flow of the product Facilities needed for storing and transporting Customer service levels to satisfy customers Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-28

Multimedia Lecture Support Package to Accompany Basic Marketing 11-29 Iams ad Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-29

Channel Specialists Adjust Discrepancies 11-30 Channel Specialists Adjust Discrepancies DISCREPANCIES OF QUANTITY Difference between the quantity of products it is economical to produce and the quantity customers want DISCREPANCIES OF ASSORTMENT Difference between the lines a producer makes and the assortment customers want REGROUPING ACTIVITIES REDUCE DISCREPANCIES Accumulating Bulk-breaking Sorting Assorting Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-30

Amazon distribution center photo 11-31 Amazon distribution center photo Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-31

John Deere toy tractors at Home Depot 11-32 John Deere toy tractors at Home Depot Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-32

Multimedia Lecture Support Package to Accompany Basic Marketing 11-33 Channel Captain A manager who helps direct the activities of the whole channel Tries to develop cooperation and avoid or resolve conflicts May be either a producer or middleman Big retail chains increasingly taking this role Guides the whole channel to compete better with other channels Effective allocation of functions A common product-market commitment Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-33

Hefty Zoo Pals and Nyman ads 11-34 Hefty Zoo Pals and Nyman ads Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-34

Vertical Marketing Systems 11-35 Vertical Marketing Systems Whole channel focuses on the same target market at the end of the channel Corporate channel systems corporate ownership all along the channel often involves vertical integration Administered channel systems informal agreements among channel members Contractual channel systems legal contracts among channel members Alliances are also popular Usually short term, and may involve a whole network of firms Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-35

Level of Market Exposure 11-36 Level of Market Exposure Intensive selling through all responsible and suitable wholesalers and retailers who will stock and/or sell the product Selective selling through only those middlemen who will give the product special attention Exclusive selling through only one middleman in a particular geographic region Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-36

Selective Distribution 11-37 Selective Distribution Sell only through middlemen who give the product special attention Avoids dealing with middlemen who: have poor credit standing make too many returns require too much service place only small orders can't or won't do a satisfactory job Becoming more popular less expensive than intensive distribution better cooperation among channel members Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-37

Reverse Channels of Distribution 11-38 Reverse Channels of Distribution Reverse channels are channels used to retrieve products that customers no longer want Examples of situations: recall of unsafe products return of products from incorrectly filled order return of products under warranty return of products customer orders in error return of products customer orders online return of products to be recycled (bottles, etc.) Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-38

When Indirect Channels Are Best 11-39 When Indirect Channels Are Best Summary Overview Even if a producer would like to handle the whole distribution job, sometimes it is simply not feasible. Key Issues Consumers want convenience. For example, as illustrated by this ad for Uni-ball, consumers may be spread over a wide area and prefer to shop at a specific place. Some consumers see Office Depot or Staples as THE place to shop for writing instruments, and they will buy only those brands carried by their favorite store. Convenience is a major reason why so many consumer product producers rely on indirect channels. Discussion Question: Would Uni-ball ever want to use direct distribution to final consumers? What things would the company consider in deciding whether to establish a direct or indirect linkage with a final consumer? Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-39

Direct Channels Are Common with Business Customers and Services 11-40 Direct Channels Are Common with Business Customers and Services Summary Overview Many business products are sold direct-to-customer. For example, robotic equipment, featured in this ad for Fanuc Robotics, might be sold direct. Key Issues In business markets, there are fewer transactions, orders tend to be larger, and customers tend to be concentrated in geographic areas. Once relationships are established, e-commerce systems can handle routine replenishment. Service firms also frequently use direct channels. However, some producers use intermediaries to provide after-sale services. Some consumer products are sold direct, such as vacuum cleaners, cosmetics, and household products. Direct sales of consumer products have grown in popularity in many international markets. Discussion Question: Mary Kay cosmetics are typically sold through independent distributors who are not employees of Mary Kay Cosmetics, Inc. These independent distributors purchase products from Mary Kay and resell them. Therefore, is Mary Kay a true direct channel? Direct marketing: direct communication between a seller and an individual using a promotion method other than face-to-face selling. Direct marketing is more concerned with promotion than it is with distribution. Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 11-40