1. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 14 - 1 Distribution Strategies

2. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 14 - 2 Distributing Products Wholesalers Retailers

3. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 14 - 3 Customers of Retailers Other retailers Wholesalers Organizations

4. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 14 - 4 Types of Retail Outlets Physical facilities Vending machines Virtual stores

5. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 14 - 5 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

6. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 14 - 6 How Intermediaries Simplify Commerce Reduce prices Reduce contacts Create utility –Time –Place –Possession

7. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 14 - 7 Types of Wholesalers Merchants Agents Brokers

8. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 14 - 8 The Changing Role of Wholesalers The Internet –Distribution system –Market reach

9. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 14 - 9 Types of Retail Stores Specialty store Category killer Discount store

10. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 14 - 10 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

11. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 14 - 11 Retail Industry Challenges Excess store space Weakened economy Consumer preferences Nonstore retailing

12. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 14 - 12 Internet Retail Strategies Pure-play Clicks-and-bricks

13. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 14 - 13 Setting Distribution Strategies Distribution mix –Kind of product being sold –Marketing practices of the industry

14. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 14 - 14 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

15. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 14 - 15 Market Coverage Distribution –Intensive –Selective –Exclusive

16. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 14 - 16 Cost Factors Selling Storage Distribution

17. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 14 - 17 Control Issues Distribution channels –Shorter –Longer Overall control –More –Less

18. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 14 - 18 Channel Conflict Inadequate product support Too many intermediaries Multiple sales channels

19. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 14 - 19 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

20. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 14 - 20 Managing Physical Distribution In-house operations Outbound transportation

21. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 14 - 21 In-House Operations Forecasting Order processing Inventory control Warehousing Materials handling

22. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 14 - 22 Outbound Transportation Rail Truck Water Air Pipeline