© 2009 South-Western, Cengage LearningMARKETING 1 Chapter 13 GETTING PRODUCTS TO CUSTOMERS 13-1Marketing through Distribution 13-2Assembling Distribution Channels 13-3Wholesaling Manages the Middle 13-4Retailing Reaches Consumers 13-5Physical Distribution CHAPTER 13

© 2009 South-Western, Cengage LearningMARKETING Chapter 13 2 Focus Questions: What is the unique product or service that UPS is offering to prospective customers in the ad? Do you believe the simplicity of the advertisement is effective? Why or why not? ©UPS

© 2009 South-Western, Cengage LearningMARKETING Chapter 13 3 MARKETING THROUGH DISTRIBUTION GOALS Explain why the distribution function is so important to effective marketing. Illustrate how a well-planned distribution system supports the marketing plan. 13-1

© 2009 South-Western, Cengage LearningMARKETING Chapter 13 4 The Importance of Distribution Activities Distribution as an economic concept Distribution as a marketing mix element

© 2009 South-Western, Cengage LearningMARKETING Chapter 13 5 Development of a Distribution System Disappointing results Decision time

© 2009 South-Western, Cengage LearningMARKETING Chapter 13 6 ASSEMBLING DISTRIBUTION CHANNELS GOALS Identify the differences between producers and consumers that are addressed by distribution channels. Describe the differences between direct and indirect channels of distribution. 13-2

© 2009 South-Western, Cengage LearningMARKETING Chapter 13 7 The Need for Distribution Channels Adjusting differences between producers and consumers Differences in quantity Differences in assortment Differences in location Differences in timing of production and consumption Providing marketing functions Increasing marketing efficiency

© 2009 South-Western, Cengage LearningMARKETING Chapter 13 8 Planning and Managing Channels of Distribution Channel participants Channel members Direct channel Indirect channel Developing and managing a channel system

© 2009 South-Western, Cengage LearningMARKETING Chapter 13 9 Multiple Channels of Distribution

© 2009 South-Western, Cengage LearningMARKETING Chapter WHOLESALING MANAGES THE MIDDLE GOALS 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. 13-3

© 2009 South-Western, Cengage LearningMARKETING Chapter Who Needs Wholesaling? Benefits of wholesaling Wholesaling activities Wholesale clubs

© 2009 South-Western, Cengage LearningMARKETING Chapter The Changing Role of Wholesalers Access to markets Specialized services

© 2009 South-Western, Cengage LearningMARKETING Chapter RETAILING REACHES CONSUMERS GOALS 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. 13-4

© 2009 South-Western, Cengage LearningMARKETING Chapter Types of Retailers Product mix Limited-line retailers Mixed merchandise retailers Superstores Service retailersLocation Convenience stores Shopping centers Stand-alone stores Non-store retailing

© 2009 South-Western, Cengage LearningMARKETING Chapter How Is Retailing Changing? Changing types of retailers The expanding Internet The growth of franchising Increased use of technology The shopping experience The global marketplace

© 2009 South-Western, Cengage LearningMARKETING Chapter PHYSICAL DISTRIBUTION GOALS 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. 13-5

© 2009 South-Western, Cengage LearningMARKETING Chapter Choosing Transportation Methods Railroads Trucks Ships and boats Airplanes Pipelines Combining methods

© 2009 South-Western, Cengage LearningMARKETING Chapter Storage and Product Handling Warehouses Distribution centers Packaging

© 2009 South-Western, Cengage LearningMARKETING Chapter Information Processing Order processing Inventory control