Business w11a Distributing Products @1


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Business w11a Distributing Products @1

  1. 1. Week 11 Distributing Products Exclusively designed and presented by: Anna Riana Putriya
  2. 2. The Four P’s and The Four C’s Marketing Mix Place Product Distribution Customer Solution Price Promotion Customer Communication Cost
  3. 3. What is the Distribution Mix ? The combination of distribution channels by which a seller gets its product to end users
  4. 4. Channels of Distribution
  5. 5. Channels 1-4
  6. 6.
  7. 7. Tupperware
  8. 8. Levi’s
  9. 9. Gas Station
  10. 10. How a distributor reduces the number of channel transactions 1 2 3 = Manufacturer 4 5 6 = Customer 7 A. Number of 8 contacts 9 without a distributor MxC=3X3= 9
  11. 11. = Manufacturer 1 = Customer 4 Store = Distributor 2 5 6 3 B. Number of contacts with a distributor MxC=3+3=6
  12. 12. Channels 5
  13. 13.
  14. 14. Channels 6-8
  15. 15. Distribution Strategies 1. Intensive distribution is a strategy by which a product is distributed through as many channels as possible 2. Exclusive distribution is a strategy by which a manufacturer grants exclusive rights to distribute or sell a product to a limited number of wholesalers or retailers 3. Selective distribution is a strategy by which a company uses only wholesalers and retailers who will give special attention to specific products
  16. 16. Agents and Brokers Agents and brokers serve as independent sales representatives for many companies’ products They work on commission They do not own their merchandise
  17. 17. Types of E-Intermediaries 1. Syndicated sellers are Web sites that offer another a commission for referring customers 2. Shopping agents (or E-agents) help Internet consumers by gathering and sorting information 3. Business-to-business brokers enable businesses to buy and sell from one another and confirm transactions electronically
  18. 18. Syndicated sellers
  19. 19. Shopping agents (or E-agents)
  20. 20. Shopping agents :
  21. 21. Business-to-business brokers:
  22. 22. Merchant Wholesalers Merchant wholesalers buy products from manufacturers and sell them to other businesses Full-service merchant wholesalers provide credit, marketing and merchandising services Limited-function merchant wholesalers provide fewer services Drop shippers don’t carry inventory or handle products Rack jobbers market consumer goods directly to retail stores
  23. 23. Retailers Types of Retail Outlets 1. Product line retailers feature broad product lines 2. Bargain retailers carry wide ranges of products and come in many forms 3. Nonstore and electronic retailing involves selling all or most of a retailer’s products without brick- and-mortar stores
  24. 24. Product Line Retailers a) Department stores are organized into specialized departments b) Supermarkets are divided into departments of related products c) Specialty stores are small stores that carry one line of related products
  25. 25. Bargain Retailers • Discount houses generate large sales volume by offering goods at substantial price reductions • Catalog showrooms mail catalogs to attract customers into showrooms to view display samples and place orders to be picked up at on-premises warehouses • Factory outlets are owned by the manufacturer whose products it sells • Warehouse club (or Wholesale club) offers large discounts on brand-name merchandise to customers who pay annual membership fees • Convenience stores offer easy accessibility, extended hours and fast service
  26. 26. Nonstore and Electronic Retailing Direct-response retailing involves direct interaction with customers to inform them about products and to receive sales orders • Mail order (or Catalog marketing) • Telemarketing • Direct selling
  27. 27. Mail order : Eddie Bauer
  28. 28. What is Electronic Retailing ? Nonstore retailing in which information about the seller’s products and services is connected to consumers’ computers, allowing consumers to receive the information and purchase the products in the home • Internet-Based Stores • Electronic Catalogs (or E-catalogs) • Electronic Storefronts and Cybermalls • From Door-to-Door to E-Sales? Multilevel Marketing • Interactive and Video Marketing
  29. 29. What is Physical Distribution ? Activities needed to move a product efficiently from manufacturer to consumer
  30. 30. Transportation tools Planes Water Trucks carriers Railroads Pipelines Factors in choosing transportation methods: Cost Nature of the product Distance Speed Customer wants and needs
  31. 31. thank you