1. 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

2. Multimedia Lecture Support Package to Accompany Basic Marketing
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Dell Opening Photo
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3. Exhibit 11-1: Marketing Strategy Planning Decisions for Place
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Exhibit 11-1: Marketing Strategy Planning Decisions for Place
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4. Multimedia Lecture Support Package to Accompany Basic Marketing
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Iams ad
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5. Multimedia Lecture Support Package to Accompany Basic Marketing
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Science Diet ad
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6. Oakley website showing sunglasses and dealer location
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Oakley website showing sunglasses and dealer location
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7. Multimedia Lecture Support Package to Accompany Basic Marketing
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Unilever’s Agrigel in Spain, Unilever’s Clear Plan website and Unilever products in Vietnam photos
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8. Unilever’s Agrigel in Spain
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Unilever’s Agrigel in Spain
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9. Unilever’s Clear Plan website
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Unilever’s Clear Plan website
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10. Unilever products in Vietnam photos
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Unilever products in Vietnam photos
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11. Multimedia Lecture Support Package to Accompany Basic Marketing
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Glaceau website
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12. Levi’s Signature Jeans at Wal-Mart photo
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Levi’s Signature Jeans at Wal-Mart photo
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13. Amazon warehouse photo
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Amazon warehouse photo
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14. Peterson channel captain ad
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Peterson channel captain ad
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15. Multimedia Lecture Support Package to Accompany Basic Marketing
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Electrolux ad
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16. Multimedia Lecture Support Package to Accompany Basic Marketing
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Exhibit 11-2: How Channel Functions May Be Shifted and Shared in Different Channel Systems
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17. iPod vending machine photo
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iPod vending machine photo
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18. Multimedia Lecture Support Package to Accompany Basic Marketing
Exhibit 11-3: Characteristics of Traditional and Vertical Marketing Systems
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19. Multimedia Lecture Support Package to Accompany Basic Marketing
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Mothers Work website
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20. Multimedia Lecture Support Package to Accompany Basic Marketing
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Stihl ad
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21. Multimedia Lecture Support Package to Accompany Basic Marketing
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ROC ad
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22. Multimedia Lecture Support Package to Accompany Basic Marketing
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Altoids ad
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23. Multimedia Lecture Support Package to Accompany Basic Marketing
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Exhibit 11-4: An Example of Multichannel Distribution by a Publisher of Computer Books,
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24. In-text recycling toner cartridges photo
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In-text recycling toner cartridges photo
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25. Mercedes-Benz Axor Truck ad
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Mercedes-Benz Axor Truck ad
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26. Haier ad and Lowe’s website
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Haier ad and Lowe’s website
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27. Multimedia Lecture Support Package to Accompany Basic Marketing
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GameStop photo
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28. Place Decisions in the Marketing Mix
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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
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29. Multimedia Lecture Support Package to Accompany Basic Marketing
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Iams ad
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30. Channel Specialists Adjust Discrepancies
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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
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31. Amazon distribution center photo
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Amazon distribution center photo
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32. John Deere toy tractors at Home Depot
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John Deere toy tractors at Home Depot
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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
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34. Hefty Zoo Pals and Nyman ads
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Hefty Zoo Pals and Nyman ads
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35. Vertical Marketing Systems
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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
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36. Level of Market Exposure
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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
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37. Selective Distribution
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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
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38. Reverse Channels of Distribution
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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.)
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39. When Indirect Channels Are Best
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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?
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40. Direct Channels Are Common with Business Customers and Services
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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.
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