© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Distribution Strategies

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Distributing Products Wholesalers Retailers

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Customers of Retailers Other retailers Wholesalers Organizations

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Types of Retail Outlets Physical facilities Vending machines Virtual stores

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Distribution Function of Wholesalers and Retailers Match buyers and sellers Provide market information Offer promotional and sales support Gather an assortment of goods Transport and store products Assume risks Provide financing

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter How Intermediaries Simplify Commerce Reduce prices Reduce contacts Create utility –Time –Place –Possession

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Types of Wholesalers Merchants Agents Brokers

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter The Changing Role of Wholesalers The Internet –Distribution system –Market reach

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Types of Retail Stores Specialty store Category killer Discount store

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Nonstore Retailers Mail-order firmsMail-order firms Automatic vendingAutomatic vending TelemarketingTelemarketing Door-to-door salesDoor-to-door sales Electronic cataloguesElectronic catalogues CybermallsCybermalls Interactive kiosksInteractive kiosks E-Commerce websitesE-Commerce websites

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Retail Industry Challenges Excess store space Weakened economy Consumer preferences Nonstore retailing

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Internet Retail Strategies Pure-play Clicks-and-bricks

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Setting Distribution Strategies Distribution mix –Kind of product being sold –Marketing practices of the industry

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Length of Distribution Channels Producer to consumer Producer to retailer to consumer Producer to wholesaler to retailer to consumer Producer to agent/broker to wholesaler to retailer to consumer

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Market Coverage Distribution –Intensive –Selective –Exclusive

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Cost Factors Selling Storage Distribution

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Control Issues Distribution channels –Shorter –Longer Overall control –More –Less

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Channel Conflict Inadequate product support Too many intermediaries Multiple sales channels

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Distribution Strategies: Additional Factors Nature and price of product Growth rate of market Location of customer base Customer’s need for service Importance of rapid delivery Strengths and weaknesses of intermediaries Global laws and customs

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Managing Physical Distribution In-house operations Outbound transportation

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter In-House Operations Forecasting Order processing Inventory control Warehousing Materials handling

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Outbound Transportation Rail Truck Water Air Pipeline