Business 100 Introduction to Business Dr. Kathy Broneck
Review <ul><li>Marketing a Product </li></ul><ul><li>Branding </li></ul><ul><li>Product Development </li></ul><ul><li>Pric...
Preview <ul><li>Retailing </li></ul><ul><li>Distribution </li></ul><ul><li>Consumer Shopping Habits </li></ul><ul><li>Supp...
Channel of Distribution <ul><li>Marketing Intermediaries </li></ul><ul><ul><li>Wholesaler </li></ul></ul><ul><ul><li>Retai...
Utility for Consumers <ul><li>Form </li></ul><ul><li>Time </li></ul><ul><li>Place </li></ul><ul><li>Information </li></ul>...
Wholesale Intermediaries <ul><li>Merchant Wholesalers </li></ul><ul><ul><li>Full-Service </li></ul></ul><ul><ul><li>Limite...
They All Started in 1962 Source:  Business 2.0 , June 2003, p. 38. Bring discount store concept to suburban malls Garden C...
Identify a Retailer in Your Area <ul><li>Supermarket </li></ul><ul><li>Convenience Store </li></ul><ul><li>Discount Store ...
Is It Becoming a Wal-Mart World? *There are 3,400 stores in the U.S. Source:  Wal-Mart Annual Report 2003
The Wheel of Retailing Passage of Time 2. Retail Outlet 1. Retail Outlet Starts 3. Retail Outlet 4. New Outlet Enters <ul>...
Retail Store Distribution <ul><li>Intensive </li></ul><ul><li>Selective </li></ul><ul><li>Exclusive </li></ul>
Non-Store Distribution <ul><li>E-tailing </li></ul><ul><li>Telemarketing </li></ul><ul><li>Vending Machines, Kiosks, Carts...
Why People Don’t Shop Online <ul><li>It isn’t secure </li></ul><ul><li>It will jeopardize my privacy </li></ul><ul><li>Usu...
Necessary Website Features Source: “Dreaming of a Green Christmas”,  Newsweek , November 11, 2002, p. E24
Channel Cooperation <ul><li>Corporate Distribution </li></ul><ul><li>Contractual Distribution </li></ul><ul><li>Administer...
The Supply Chain
Logistics <ul><li>Physical Distribution </li></ul><ul><li>Inbound </li></ul><ul><li>Materials </li></ul><ul><li>Outbound <...
Transportation & Storage Modes <ul><li>Railroad </li></ul><ul><li>Motor Vehicles </li></ul><ul><li>Water </li></ul><ul><li...
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Distributing Products Quickly and Efficiently

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Distributing Products Quickly and Efficiently

  1. 1. Business 100 Introduction to Business Dr. Kathy Broneck
  2. 2. Review <ul><li>Marketing a Product </li></ul><ul><li>Branding </li></ul><ul><li>Product Development </li></ul><ul><li>Pricing a Product </li></ul>
  3. 3. Preview <ul><li>Retailing </li></ul><ul><li>Distribution </li></ul><ul><li>Consumer Shopping Habits </li></ul><ul><li>Supply Chain Management </li></ul>
  4. 4. Channel of Distribution <ul><li>Marketing Intermediaries </li></ul><ul><ul><li>Wholesaler </li></ul></ul><ul><ul><li>Retailer </li></ul></ul><ul><ul><li>Agents/Brokers </li></ul></ul><ul><li>Role of Intermediaries </li></ul><ul><ul><li>Create Efficiency </li></ul></ul><ul><ul><li>Value vs. Cost </li></ul></ul>
  5. 5. Utility for Consumers <ul><li>Form </li></ul><ul><li>Time </li></ul><ul><li>Place </li></ul><ul><li>Information </li></ul><ul><li>Possession </li></ul><ul><li>Service </li></ul>
  6. 6. Wholesale Intermediaries <ul><li>Merchant Wholesalers </li></ul><ul><ul><li>Full-Service </li></ul></ul><ul><ul><li>Limited-Function </li></ul></ul><ul><ul><li>Rack Jobbers </li></ul></ul><ul><ul><li>Cash-and-Carry </li></ul></ul><ul><ul><li>Drop Shippers </li></ul></ul><ul><li>Business to Business (B2B) </li></ul>
  7. 7. They All Started in 1962 Source: Business 2.0 , June 2003, p. 38. Bring discount store concept to suburban malls Garden City, MI March 1962 Kmart Discount retailer with strong sense of value Roseville, MN May 1962 Target Slash prices. Makeup difference in volume Rogers, Ark. July 1962 Wal-Mart Objective 1 st Store Company
  8. 8. Identify a Retailer in Your Area <ul><li>Supermarket </li></ul><ul><li>Convenience Store </li></ul><ul><li>Discount Store </li></ul><ul><li>Department Store </li></ul><ul><li>Category Killer </li></ul><ul><li>Specialty Store </li></ul><ul><li>Factory Outlet </li></ul><ul><li>Superstores </li></ul><ul><li>Catalog Showroom </li></ul>
  9. 9. Is It Becoming a Wal-Mart World? *There are 3,400 stores in the U.S. Source: Wal-Mart Annual Report 2003
  10. 10. The Wheel of Retailing Passage of Time 2. Retail Outlet 1. Retail Outlet Starts 3. Retail Outlet 4. New Outlet Enters <ul><li>Adds Service </li></ul><ul><li>Raises Prices </li></ul><ul><li>Better Location </li></ul><ul><li>Low Price </li></ul><ul><li>Limited Service </li></ul><ul><li>Out-of-way Location </li></ul><ul><li>Higher Prices </li></ul><ul><li>Higher Status </li></ul><ul><li>Low Price </li></ul><ul><li>Limited Service </li></ul>
  11. 11. Retail Store Distribution <ul><li>Intensive </li></ul><ul><li>Selective </li></ul><ul><li>Exclusive </li></ul>
  12. 12. Non-Store Distribution <ul><li>E-tailing </li></ul><ul><li>Telemarketing </li></ul><ul><li>Vending Machines, Kiosks, Carts </li></ul><ul><li>Direct Selling </li></ul><ul><li>Multilevel Marketing </li></ul><ul><li>Direct Marketing </li></ul>
  13. 13. Why People Don’t Shop Online <ul><li>It isn’t secure </li></ul><ul><li>It will jeopardize my privacy </li></ul><ul><li>Usually must pay shipping charges </li></ul><ul><li>Not enough selection </li></ul><ul><li>Can’t touch/try things first </li></ul><ul><li>No satisfaction guarantee </li></ul><ul><li>Returns are a hassle </li></ul><ul><li>Won’t arrive on time </li></ul><ul><li>Hard to find things online </li></ul><ul><li>Enjoy getting out of house to shop </li></ul>Source: blink , www.earthlink.net/blink
  14. 14. Necessary Website Features Source: “Dreaming of a Green Christmas”, Newsweek , November 11, 2002, p. E24
  15. 15. Channel Cooperation <ul><li>Corporate Distribution </li></ul><ul><li>Contractual Distribution </li></ul><ul><li>Administered Distribution </li></ul><ul><li>Supply Chain Management </li></ul>
  16. 16. The Supply Chain
  17. 17. Logistics <ul><li>Physical Distribution </li></ul><ul><li>Inbound </li></ul><ul><li>Materials </li></ul><ul><li>Outbound </li></ul><ul><li>Reverse </li></ul><ul><li>Information </li></ul>
  18. 18. Transportation & Storage Modes <ul><li>Railroad </li></ul><ul><li>Motor Vehicles </li></ul><ul><li>Water </li></ul><ul><li>Pipeline </li></ul><ul><li>Air </li></ul><ul><li>Intermodal </li></ul><ul><li>Warehousing </li></ul><ul><ul><li>Storage </li></ul></ul><ul><ul><li>Distribution </li></ul></ul>

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