Principles of Marketing Ch 10

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  • is “a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business useroperations by dealing with customers more efficiently.the distribution channel enhances a company’s the distribution channel effectively is considered as one of primary factors of accomplishing a successful marketing.__________________________________________Distribution channel is “a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user” (3)the distribution channel enhances a company’s operations by dealing with customers more efficiently. The channel is not only a market supplier but also a partner of the company that works as a team to achieve higher quality performances. Thus, utilizing the distribution channel effectively is considered as one of primary factors of accomplishing a successful marketing.InformationFor example, a multinational company's Chinese distributor can potentially tap into his government sources and provide timely information about impending regulatory changes that could prove valuable in adjusting strategies ahead of the competition.Promotiondevelops marketing strategies, including preparing the marketing budget, designing the promotional and advertising material. The channels can adjust their marketing efforts faster than the head office because they are closer to their customers.ContactFor example, a computer wholesaler's job would be to find computer retailers, while a retailer's job would be to find customers. This can be done through promotions that pull in customers--including attracting them directly to the company's online store--and also through old-fashioned telephone calls and door knocking that push products to customers.MatchingFor example, if a retailer only wants to sell laptops with word-processing software included, the distributor needs to contact her company's nearest manufacturing facility to ensure the laptops are properly configured prior to shipmentNegotiationClosing the sale is part of a channel's negotiation function. For a computer wholesaler, it could mean negotiating price and minimum quantity levels with the retailer. For a master franchise operator (an experienced franchisee with exclusive rights in a region), it could mean negotiating the franchise agreement with a new franchisee and providing training and mentoring services.FinancingA distribution channel partner finances his costs, including buying and storing inventory. For example, a car dealership may arrange financing through the car manufacturer or the local banks or a combinationRiskA distribution channel shares in some of the business risks. For example, if a new product launch does not go well, the distributor may get stuck with excess inventory. There also is the risk of unpaid bills and damaged inventory. Foreign distributors also bear the risk of political and economic uncertainty in their respective countries.Direct Marketinis a channel free approach to distribution and/or marketing communications. So a company may have a strategy of dealing with its customers 'directly,' for example banks (such as CityBank) or computer manufacturers (such as Dell). There are no channel intermediaries i.e. distributors, retailers or wholesalers. Therefore - 'direct' in the sense that the deal is done directly between the manufacturer and the customer. Definition: One who sells goods or commodities directly to consumers. These items are purchased from the manufacturer or wholesaler and sold to the end user at a marked up price Examples:Wal-Mart is a well-known large chain retailer. Another example of a retailer would be the small family-operated pharmacy on the corner.
  • 1.a multinational company's Chinese distributor can potentially tap into his government sources and provide timely information about impending regulatory changes that could prove valuable in adjusting strategies ahead of the competition.2. develops marketing strategies, including preparing the marketing budget, designing the promotional and advertising material. The channels can adjust their marketing efforts faster than the head office because they are closer to their customers.3. a computer wholesaler's job would be to find computer retailers, while a retailer's job would be to find customers. This can be done through promotions that pull in customers--including attracting them directly to the company's online store--and also through old-fashioned telephone calls and door knocking that push products to customers.4. if a retailer only wants to sell laptops with word-processing software included, the distributor needs to contact her company's nearest manufacturing facility to ensure the laptops are properly configured prior to shipment5. Closing the sale is part of a channel's negotiation function. For a computer wholesaler, it could mean negotiating price and minimum quantity levels with the retailer. For a master franchise operator (an experienced franchisee with exclusive rights in a region), it could mean negotiating the franchise agreement with a new franchisee and providing training and mentoring services.6. A distribution channel partner finances his costs, including buying and storing inventory. For example, a car dealership may arrange financing through the car manufacturer or the local banks or a combination7. if a new product launch does not go well, the distributor may get stuck with excess inventory. There also is the risk of unpaid bills and damaged inventory. Foreign distributors also bear the risk of political and economic uncertainty in their respective countries.__________________________________________Distribution channel is “a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user” (3)the distribution channel enhances a company’s operations by dealing with customers more efficiently. The channel is not only a market supplier but also a partner of the company that works as a team to achieve higher quality performances. Thus, utilizing the distribution channel effectively is considered as one of primary factors of accomplishing a successful marketing.InformationFor example, a multinational company's Chinese distributor can potentially tap into his government sources and provide timely information about impending regulatory changes that could prove valuable in adjusting strategies ahead of the competition.Promotiondevelops marketing strategies, including preparing the marketing budget, designing the promotional and advertising material. The channels can adjust their marketing efforts faster than the head office because they are closer to their customers.ContactFor example, a computer wholesaler's job would be to find computer retailers, while a retailer's job would be to find customers. This can be done through promotions that pull in customers--including attracting them directly to the company's online store--and also through old-fashioned telephone calls and door knocking that push products to customers.MatchingFor example, if a retailer only wants to sell laptops with word-processing software included, the distributor needs to contact her company's nearest manufacturing facility to ensure the laptops are properly configured prior to shipmentNegotiationClosing the sale is part of a channel's negotiation function. For a computer wholesaler, it could mean negotiating price and minimum quantity levels with the retailer. For a master franchise operator (an experienced franchisee with exclusive rights in a region), it could mean negotiating the franchise agreement with a new franchisee and providing training and mentoring services.FinancingA distribution channel partner finances his costs, including buying and storing inventory. For example, a car dealership may arrange financing through the car manufacturer or the local banks or a combinationRiskA distribution channel shares in some of the business risks. For example, if a new product launch does not go well, the distributor may get stuck with excess inventory. There also is the risk of unpaid bills and damaged inventory. Foreign distributors also bear the risk of political and economic uncertainty in their respective countries.Direct Marketinis a channel free approach to distribution and/or marketing communications. So a company may have a strategy of dealing with its customers 'directly,' for example banks (such as CityBank) or computer manufacturers (such as Dell). There are no channel intermediaries i.e. distributors, retailers or wholesalers. Therefore - 'direct' in the sense that the deal is done directly between the manufacturer and the customer. Definition: One who sells goods or commodities directly to consumers. These items are purchased from the manufacturer or wholesaler and sold to the end user at a marked up price Examples:Wal-Mart is a well-known large chain retailer. Another example of a retailer would be the small family-operated pharmacy on the corner.
  • is a channel free approach to distribution and/or marketing communications. So a company may have a strategy of dealing with its customers 'directly,' for example banks (such as CityBank) or computer manufacturers (such as Dell). There are no channel intermediaries i.e. distributors, retailers or wholesalers. Therefore - 'direct' in the sense that the deal is done directly between the manufacturer and the customer.__________________________________________Distribution channel is “a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user” (3)the distribution channel enhances a company’s operations by dealing with customers more efficiently. The channel is not only a market supplier but also a partner of the company that works as a team to achieve higher quality performances. Thus, utilizing the distribution channel effectively is considered as one of primary factors of accomplishing a successful marketing.InformationFor example, a multinational company's Chinese distributor can potentially tap into his government sources and provide timely information about impending regulatory changes that could prove valuable in adjusting strategies ahead of the competition.Promotiondevelops marketing strategies, including preparing the marketing budget, designing the promotional and advertising material. The channels can adjust their marketing efforts faster than the head office because they are closer to their customers.ContactFor example, a computer wholesaler's job would be to find computer retailers, while a retailer's job would be to find customers. This can be done through promotions that pull in customers--including attracting them directly to the company's online store--and also through old-fashioned telephone calls and door knocking that push products to customers.MatchingFor example, if a retailer only wants to sell laptops with word-processing software included, the distributor needs to contact her company's nearest manufacturing facility to ensure the laptops are properly configured prior to shipmentNegotiationClosing the sale is part of a channel's negotiation function. For a computer wholesaler, it could mean negotiating price and minimum quantity levels with the retailer. For a master franchise operator (an experienced franchisee with exclusive rights in a region), it could mean negotiating the franchise agreement with a new franchisee and providing training and mentoring services.FinancingA distribution channel partner finances his costs, including buying and storing inventory. For example, a car dealership may arrange financing through the car manufacturer or the local banks or a combinationRiskA distribution channel shares in some of the business risks. For example, if a new product launch does not go well, the distributor may get stuck with excess inventory. There also is the risk of unpaid bills and damaged inventory. Foreign distributors also bear the risk of political and economic uncertainty in their respective countries.Direct Marketinis a channel free approach to distribution and/or marketing communications. So a company may have a strategy of dealing with its customers 'directly,' for example banks (such as CityBank) or computer manufacturers (such as Dell). There are no channel intermediaries i.e. distributors, retailers or wholesalers. Therefore - 'direct' in the sense that the deal is done directly between the manufacturer and the customer. Definition: One who sells goods or commodities directly to consumers. These items are purchased from the manufacturer or wholesaler and sold to the end user at a marked up price Examples:Wal-Mart is a well-known large chain retailer. Another example of a retailer would be the small family-operated pharmacy on the corner.
  • __________________________________________Distribution channel is “a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user” (3)the distribution channel enhances a company’s operations by dealing with customers more efficiently. The channel is not only a market supplier but also a partner of the company that works as a team to achieve higher quality performances. Thus, utilizing the distribution channel effectively is considered as one of primary factors of accomplishing a successful marketing.InformationFor example, a multinational company's Chinese distributor can potentially tap into his government sources and provide timely information about impending regulatory changes that could prove valuable in adjusting strategies ahead of the competition.Promotiondevelops marketing strategies, including preparing the marketing budget, designing the promotional and advertising material. The channels can adjust their marketing efforts faster than the head office because they are closer to their customers.ContactFor example, a computer wholesaler's job would be to find computer retailers, while a retailer's job would be to find customers. This can be done through promotions that pull in customers--including attracting them directly to the company's online store--and also through old-fashioned telephone calls and door knocking that push products to customers.MatchingFor example, if a retailer only wants to sell laptops with word-processing software included, the distributor needs to contact her company's nearest manufacturing facility to ensure the laptops are properly configured prior to shipmentNegotiationClosing the sale is part of a channel's negotiation function. For a computer wholesaler, it could mean negotiating price and minimum quantity levels with the retailer. For a master franchise operator (an experienced franchisee with exclusive rights in a region), it could mean negotiating the franchise agreement with a new franchisee and providing training and mentoring services.FinancingA distribution channel partner finances his costs, including buying and storing inventory. For example, a car dealership may arrange financing through the car manufacturer or the local banks or a combinationRiskA distribution channel shares in some of the business risks. For example, if a new product launch does not go well, the distributor may get stuck with excess inventory. There also is the risk of unpaid bills and damaged inventory. Foreign distributors also bear the risk of political and economic uncertainty in their respective countries.Direct Marketinis a channel free approach to distribution and/or marketing communications. So a company may have a strategy of dealing with its customers 'directly,' for example banks (such as CityBank) or computer manufacturers (such as Dell). There are no channel intermediaries i.e. distributors, retailers or wholesalers. Therefore - 'direct' in the sense that the deal is done directly between the manufacturer and the customer. Definition: One who sells goods or commodities directly to consumers. These items are purchased from the manufacturer or wholesaler and sold to the end user at a marked up price Examples:Wal-Mart is a well-known large chain retailer. Another example of a retailer would be the small family-operated pharmacy on the corner.
  • __________________________________________Distribution channel is “a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user” (3)the distribution channel enhances a company’s operations by dealing with customers more efficiently. The channel is not only a market supplier but also a partner of the company that works as a team to achieve higher quality performances. Thus, utilizing the distribution channel effectively is considered as one of primary factors of accomplishing a successful marketing.InformationFor example, a multinational company's Chinese distributor can potentially tap into his government sources and provide timely information about impending regulatory changes that could prove valuable in adjusting strategies ahead of the competition.Promotiondevelops marketing strategies, including preparing the marketing budget, designing the promotional and advertising material. The channels can adjust their marketing efforts faster than the head office because they are closer to their customers.ContactFor example, a computer wholesaler's job would be to find computer retailers, while a retailer's job would be to find customers. This can be done through promotions that pull in customers--including attracting them directly to the company's online store--and also through old-fashioned telephone calls and door knocking that push products to customers.MatchingFor example, if a retailer only wants to sell laptops with word-processing software included, the distributor needs to contact her company's nearest manufacturing facility to ensure the laptops are properly configured prior to shipmentNegotiationClosing the sale is part of a channel's negotiation function. For a computer wholesaler, it could mean negotiating price and minimum quantity levels with the retailer. For a master franchise operator (an experienced franchisee with exclusive rights in a region), it could mean negotiating the franchise agreement with a new franchisee and providing training and mentoring services.FinancingA distribution channel partner finances his costs, including buying and storing inventory. For example, a car dealership may arrange financing through the car manufacturer or the local banks or a combinationRiskA distribution channel shares in some of the business risks. For example, if a new product launch does not go well, the distributor may get stuck with excess inventory. There also is the risk of unpaid bills and damaged inventory. Foreign distributors also bear the risk of political and economic uncertainty in their respective countries.Direct Marketinis a channel free approach to distribution and/or marketing communications. So a company may have a strategy of dealing with its customers 'directly,' for example banks (such as CityBank) or computer manufacturers (such as Dell). There are no channel intermediaries i.e. distributors, retailers or wholesalers. Therefore - 'direct' in the sense that the deal is done directly between the manufacturer and the customer. Definition: One who sells goods or commodities directly to consumers. These items are purchased from the manufacturer or wholesaler and sold to the end user at a marked up price Examples:Wal-Mart is a well-known large chain retailer. Another example of a retailer would be the small family-operated pharmacy on the corner.
  • __________________________________________Distribution channel is “a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user” (3)the distribution channel enhances a company’s operations by dealing with customers more efficiently. The channel is not only a market supplier but also a partner of the company that works as a team to achieve higher quality performances. Thus, utilizing the distribution channel effectively is considered as one of primary factors of accomplishing a successful marketing.InformationFor example, a multinational company's Chinese distributor can potentially tap into his government sources and provide timely information about impending regulatory changes that could prove valuable in adjusting strategies ahead of the competition.Promotiondevelops marketing strategies, including preparing the marketing budget, designing the promotional and advertising material. The channels can adjust their marketing efforts faster than the head office because they are closer to their customers.ContactFor example, a computer wholesaler's job would be to find computer retailers, while a retailer's job would be to find customers. This can be done through promotions that pull in customers--including attracting them directly to the company's online store--and also through old-fashioned telephone calls and door knocking that push products to customers.MatchingFor example, if a retailer only wants to sell laptops with word-processing software included, the distributor needs to contact her company's nearest manufacturing facility to ensure the laptops are properly configured prior to shipmentNegotiationClosing the sale is part of a channel's negotiation function. For a computer wholesaler, it could mean negotiating price and minimum quantity levels with the retailer. For a master franchise operator (an experienced franchisee with exclusive rights in a region), it could mean negotiating the franchise agreement with a new franchisee and providing training and mentoring services.FinancingA distribution channel partner finances his costs, including buying and storing inventory. For example, a car dealership may arrange financing through the car manufacturer or the local banks or a combinationRiskA distribution channel shares in some of the business risks. For example, if a new product launch does not go well, the distributor may get stuck with excess inventory. There also is the risk of unpaid bills and damaged inventory. Foreign distributors also bear the risk of political and economic uncertainty in their respective countries.Direct Marketinis a channel free approach to distribution and/or marketing communications. So a company may have a strategy of dealing with its customers 'directly,' for example banks (such as CityBank) or computer manufacturers (such as Dell). There are no channel intermediaries i.e. distributors, retailers or wholesalers. Therefore - 'direct' in the sense that the deal is done directly between the manufacturer and the customer. Definition: One who sells goods or commodities directly to consumers. These items are purchased from the manufacturer or wholesaler and sold to the end user at a marked up price Examples:Wal-Mart is a well-known large chain retailer. Another example of a retailer would be the small family-operated pharmacy on the corner.
  • One who sells goods or commodities directly to consumers. These items are purchased from the manufacturer or wholesaler and sold to the end user at a marked up price Wal-Mart is a well-known large chain retailer. Another example of a retailer would be the small family-operated pharmacy on the corner.__________________________________________Distribution channel is “a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user” (3)the distribution channel enhances a company’s operations by dealing with customers more efficiently. The channel is not only a market supplier but also a partner of the company that works as a team to achieve higher quality performances. Thus, utilizing the distribution channel effectively is considered as one of primary factors of accomplishing a successful marketing.InformationFor example, a multinational company's Chinese distributor can potentially tap into his government sources and provide timely information about impending regulatory changes that could prove valuable in adjusting strategies ahead of the competition.Promotiondevelops marketing strategies, including preparing the marketing budget, designing the promotional and advertising material. The channels can adjust their marketing efforts faster than the head office because they are closer to their customers.ContactFor example, a computer wholesaler's job would be to find computer retailers, while a retailer's job would be to find customers. This can be done through promotions that pull in customers--including attracting them directly to the company's online store--and also through old-fashioned telephone calls and door knocking that push products to customers.MatchingFor example, if a retailer only wants to sell laptops with word-processing software included, the distributor needs to contact her company's nearest manufacturing facility to ensure the laptops are properly configured prior to shipmentNegotiationClosing the sale is part of a channel's negotiation function. For a computer wholesaler, it could mean negotiating price and minimum quantity levels with the retailer. For a master franchise operator (an experienced franchisee with exclusive rights in a region), it could mean negotiating the franchise agreement with a new franchisee and providing training and mentoring services.FinancingA distribution channel partner finances his costs, including buying and storing inventory. For example, a car dealership may arrange financing through the car manufacturer or the local banks or a combinationRiskA distribution channel shares in some of the business risks. For example, if a new product launch does not go well, the distributor may get stuck with excess inventory. There also is the risk of unpaid bills and damaged inventory. Foreign distributors also bear the risk of political and economic uncertainty in their respective countries.Direct Marketinis a channel free approach to distribution and/or marketing communications. So a company may have a strategy of dealing with its customers 'directly,' for example banks (such as CityBank) or computer manufacturers (such as Dell). There are no channel intermediaries i.e. distributors, retailers or wholesalers. Therefore - 'direct' in the sense that the deal is done directly between the manufacturer and the customer. Definition: One who sells goods or commodities directly to consumers. These items are purchased from the manufacturer or wholesaler and sold to the end user at a marked up price Examples:Wal-Mart is a well-known large chain retailer. Another example of a retailer would be the small family-operated pharmacy on the corner.
  • __________________________________________Distribution channel is “a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user” (3)the distribution channel enhances a company’s operations by dealing with customers more efficiently. The channel is not only a market supplier but also a partner of the company that works as a team to achieve higher quality performances. Thus, utilizing the distribution channel effectively is considered as one of primary factors of accomplishing a successful marketing.InformationFor example, a multinational company's Chinese distributor can potentially tap into his government sources and provide timely information about impending regulatory changes that could prove valuable in adjusting strategies ahead of the competition.Promotiondevelops marketing strategies, including preparing the marketing budget, designing the promotional and advertising material. The channels can adjust their marketing efforts faster than the head office because they are closer to their customers.ContactFor example, a computer wholesaler's job would be to find computer retailers, while a retailer's job would be to find customers. This can be done through promotions that pull in customers--including attracting them directly to the company's online store--and also through old-fashioned telephone calls and door knocking that push products to customers.MatchingFor example, if a retailer only wants to sell laptops with word-processing software included, the distributor needs to contact her company's nearest manufacturing facility to ensure the laptops are properly configured prior to shipmentNegotiationClosing the sale is part of a channel's negotiation function. For a computer wholesaler, it could mean negotiating price and minimum quantity levels with the retailer. For a master franchise operator (an experienced franchisee with exclusive rights in a region), it could mean negotiating the franchise agreement with a new franchisee and providing training and mentoring services.FinancingA distribution channel partner finances his costs, including buying and storing inventory. For example, a car dealership may arrange financing through the car manufacturer or the local banks or a combinationRiskA distribution channel shares in some of the business risks. For example, if a new product launch does not go well, the distributor may get stuck with excess inventory. There also is the risk of unpaid bills and damaged inventory. Foreign distributors also bear the risk of political and economic uncertainty in their respective countries.Direct Marketinis a channel free approach to distribution and/or marketing communications. So a company may have a strategy of dealing with its customers 'directly,' for example banks (such as CityBank) or computer manufacturers (such as Dell). There are no channel intermediaries i.e. distributors, retailers or wholesalers. Therefore - 'direct' in the sense that the deal is done directly between the manufacturer and the customer. Definition: One who sells goods or commodities directly to consumers. These items are purchased from the manufacturer or wholesaler and sold to the end user at a marked up price Examples:Wal-Mart is a well-known large chain retailer. Another example of a retailer would be the small family-operated pharmacy on the corner.
  • __________________________________________Distribution channel is “a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user” (3)the distribution channel enhances a company’s operations by dealing with customers more efficiently. The channel is not only a market supplier but also a partner of the company that works as a team to achieve higher quality performances. Thus, utilizing the distribution channel effectively is considered as one of primary factors of accomplishing a successful marketing.InformationFor example, a multinational company's Chinese distributor can potentially tap into his government sources and provide timely information about impending regulatory changes that could prove valuable in adjusting strategies ahead of the competition.Promotiondevelops marketing strategies, including preparing the marketing budget, designing the promotional and advertising material. The channels can adjust their marketing efforts faster than the head office because they are closer to their customers.ContactFor example, a computer wholesaler's job would be to find computer retailers, while a retailer's job would be to find customers. This can be done through promotions that pull in customers--including attracting them directly to the company's online store--and also through old-fashioned telephone calls and door knocking that push products to customers.MatchingFor example, if a retailer only wants to sell laptops with word-processing software included, the distributor needs to contact her company's nearest manufacturing facility to ensure the laptops are properly configured prior to shipmentNegotiationClosing the sale is part of a channel's negotiation function. For a computer wholesaler, it could mean negotiating price and minimum quantity levels with the retailer. For a master franchise operator (an experienced franchisee with exclusive rights in a region), it could mean negotiating the franchise agreement with a new franchisee and providing training and mentoring services.FinancingA distribution channel partner finances his costs, including buying and storing inventory. For example, a car dealership may arrange financing through the car manufacturer or the local banks or a combinationRiskA distribution channel shares in some of the business risks. For example, if a new product launch does not go well, the distributor may get stuck with excess inventory. There also is the risk of unpaid bills and damaged inventory. Foreign distributors also bear the risk of political and economic uncertainty in their respective countries.Direct Marketinis a channel free approach to distribution and/or marketing communications. So a company may have a strategy of dealing with its customers 'directly,' for example banks (such as CityBank) or computer manufacturers (such as Dell). There are no channel intermediaries i.e. distributors, retailers or wholesalers. Therefore - 'direct' in the sense that the deal is done directly between the manufacturer and the customer. Definition: One who sells goods or commodities directly to consumers. These items are purchased from the manufacturer or wholesaler and sold to the end user at a marked up price Examples:Wal-Mart is a well-known large chain retailer. Another example of a retailer would be the small family-operated pharmacy on the corner.
  • __________________________________________Distribution channel is “a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user” (3)the distribution channel enhances a company’s operations by dealing with customers more efficiently. The channel is not only a market supplier but also a partner of the company that works as a team to achieve higher quality performances. Thus, utilizing the distribution channel effectively is considered as one of primary factors of accomplishing a successful marketing.InformationFor example, a multinational company's Chinese distributor can potentially tap into his government sources and provide timely information about impending regulatory changes that could prove valuable in adjusting strategies ahead of the competition.Promotiondevelops marketing strategies, including preparing the marketing budget, designing the promotional and advertising material. The channels can adjust their marketing efforts faster than the head office because they are closer to their customers.ContactFor example, a computer wholesaler's job would be to find computer retailers, while a retailer's job would be to find customers. This can be done through promotions that pull in customers--including attracting them directly to the company's online store--and also through old-fashioned telephone calls and door knocking that push products to customers.MatchingFor example, if a retailer only wants to sell laptops with word-processing software included, the distributor needs to contact her company's nearest manufacturing facility to ensure the laptops are properly configured prior to shipmentNegotiationClosing the sale is part of a channel's negotiation function. For a computer wholesaler, it could mean negotiating price and minimum quantity levels with the retailer. For a master franchise operator (an experienced franchisee with exclusive rights in a region), it could mean negotiating the franchise agreement with a new franchisee and providing training and mentoring services.FinancingA distribution channel partner finances his costs, including buying and storing inventory. For example, a car dealership may arrange financing through the car manufacturer or the local banks or a combinationRiskA distribution channel shares in some of the business risks. For example, if a new product launch does not go well, the distributor may get stuck with excess inventory. There also is the risk of unpaid bills and damaged inventory. Foreign distributors also bear the risk of political and economic uncertainty in their respective countries.Direct Marketinis a channel free approach to distribution and/or marketing communications. So a company may have a strategy of dealing with its customers 'directly,' for example banks (such as CityBank) or computer manufacturers (such as Dell). There are no channel intermediaries i.e. distributors, retailers or wholesalers. Therefore - 'direct' in the sense that the deal is done directly between the manufacturer and the customer. Definition: One who sells goods or commodities directly to consumers. These items are purchased from the manufacturer or wholesaler and sold to the end user at a marked up price Examples:Wal-Mart is a well-known large chain retailer. Another example of a retailer would be the small family-operated pharmacy on the corner.
  • __________________________________________Distribution channel is “a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user” (3)the distribution channel enhances a company’s operations by dealing with customers more efficiently. The channel is not only a market supplier but also a partner of the company that works as a team to achieve higher quality performances. Thus, utilizing the distribution channel effectively is considered as one of primary factors of accomplishing a successful marketing.InformationFor example, a multinational company's Chinese distributor can potentially tap into his government sources and provide timely information about impending regulatory changes that could prove valuable in adjusting strategies ahead of the competition.Promotiondevelops marketing strategies, including preparing the marketing budget, designing the promotional and advertising material. The channels can adjust their marketing efforts faster than the head office because they are closer to their customers.ContactFor example, a computer wholesaler's job would be to find computer retailers, while a retailer's job would be to find customers. This can be done through promotions that pull in customers--including attracting them directly to the company's online store--and also through old-fashioned telephone calls and door knocking that push products to customers.MatchingFor example, if a retailer only wants to sell laptops with word-processing software included, the distributor needs to contact her company's nearest manufacturing facility to ensure the laptops are properly configured prior to shipmentNegotiationClosing the sale is part of a channel's negotiation function. For a computer wholesaler, it could mean negotiating price and minimum quantity levels with the retailer. For a master franchise operator (an experienced franchisee with exclusive rights in a region), it could mean negotiating the franchise agreement with a new franchisee and providing training and mentoring services.FinancingA distribution channel partner finances his costs, including buying and storing inventory. For example, a car dealership may arrange financing through the car manufacturer or the local banks or a combinationRiskA distribution channel shares in some of the business risks. For example, if a new product launch does not go well, the distributor may get stuck with excess inventory. There also is the risk of unpaid bills and damaged inventory. Foreign distributors also bear the risk of political and economic uncertainty in their respective countries.Direct Marketinis a channel free approach to distribution and/or marketing communications. So a company may have a strategy of dealing with its customers 'directly,' for example banks (such as CityBank) or computer manufacturers (such as Dell). There are no channel intermediaries i.e. distributors, retailers or wholesalers. Therefore - 'direct' in the sense that the deal is done directly between the manufacturer and the customer. Definition: One who sells goods or commodities directly to consumers. These items are purchased from the manufacturer or wholesaler and sold to the end user at a marked up price Examples:Wal-Mart is a well-known large chain retailer. Another example of a retailer would be the small family-operated pharmacy on the corner.
  • __________________________________________Distribution channel is “a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user” (3)the distribution channel enhances a company’s operations by dealing with customers more efficiently. The channel is not only a market supplier but also a partner of the company that works as a team to achieve higher quality performances. Thus, utilizing the distribution channel effectively is considered as one of primary factors of accomplishing a successful marketing.InformationFor example, a multinational company's Chinese distributor can potentially tap into his government sources and provide timely information about impending regulatory changes that could prove valuable in adjusting strategies ahead of the competition.Promotiondevelops marketing strategies, including preparing the marketing budget, designing the promotional and advertising material. The channels can adjust their marketing efforts faster than the head office because they are closer to their customers.ContactFor example, a computer wholesaler's job would be to find computer retailers, while a retailer's job would be to find customers. This can be done through promotions that pull in customers--including attracting them directly to the company's online store--and also through old-fashioned telephone calls and door knocking that push products to customers.MatchingFor example, if a retailer only wants to sell laptops with word-processing software included, the distributor needs to contact her company's nearest manufacturing facility to ensure the laptops are properly configured prior to shipmentNegotiationClosing the sale is part of a channel's negotiation function. For a computer wholesaler, it could mean negotiating price and minimum quantity levels with the retailer. For a master franchise operator (an experienced franchisee with exclusive rights in a region), it could mean negotiating the franchise agreement with a new franchisee and providing training and mentoring services.FinancingA distribution channel partner finances his costs, including buying and storing inventory. For example, a car dealership may arrange financing through the car manufacturer or the local banks or a combinationRiskA distribution channel shares in some of the business risks. For example, if a new product launch does not go well, the distributor may get stuck with excess inventory. There also is the risk of unpaid bills and damaged inventory. Foreign distributors also bear the risk of political and economic uncertainty in their respective countries.Direct Marketinis a channel free approach to distribution and/or marketing communications. So a company may have a strategy of dealing with its customers 'directly,' for example banks (such as CityBank) or computer manufacturers (such as Dell). There are no channel intermediaries i.e. distributors, retailers or wholesalers. Therefore - 'direct' in the sense that the deal is done directly between the manufacturer and the customer. Definition: One who sells goods or commodities directly to consumers. These items are purchased from the manufacturer or wholesaler and sold to the end user at a marked up price Examples:Wal-Mart is a well-known large chain retailer. Another example of a retailer would be the small family-operated pharmacy on the corner.
  • __________________________________________Distribution channel is “a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user” (3)the distribution channel enhances a company’s operations by dealing with customers more efficiently. The channel is not only a market supplier but also a partner of the company that works as a team to achieve higher quality performances. Thus, utilizing the distribution channel effectively is considered as one of primary factors of accomplishing a successful marketing.InformationFor example, a multinational company's Chinese distributor can potentially tap into his government sources and provide timely information about impending regulatory changes that could prove valuable in adjusting strategies ahead of the competition.Promotiondevelops marketing strategies, including preparing the marketing budget, designing the promotional and advertising material. The channels can adjust their marketing efforts faster than the head office because they are closer to their customers.ContactFor example, a computer wholesaler's job would be to find computer retailers, while a retailer's job would be to find customers. This can be done through promotions that pull in customers--including attracting them directly to the company's online store--and also through old-fashioned telephone calls and door knocking that push products to customers.MatchingFor example, if a retailer only wants to sell laptops with word-processing software included, the distributor needs to contact her company's nearest manufacturing facility to ensure the laptops are properly configured prior to shipmentNegotiationClosing the sale is part of a channel's negotiation function. For a computer wholesaler, it could mean negotiating price and minimum quantity levels with the retailer. For a master franchise operator (an experienced franchisee with exclusive rights in a region), it could mean negotiating the franchise agreement with a new franchisee and providing training and mentoring services.FinancingA distribution channel partner finances his costs, including buying and storing inventory. For example, a car dealership may arrange financing through the car manufacturer or the local banks or a combinationRiskA distribution channel shares in some of the business risks. For example, if a new product launch does not go well, the distributor may get stuck with excess inventory. There also is the risk of unpaid bills and damaged inventory. Foreign distributors also bear the risk of political and economic uncertainty in their respective countries.Direct Marketinis a channel free approach to distribution and/or marketing communications. So a company may have a strategy of dealing with its customers 'directly,' for example banks (such as CityBank) or computer manufacturers (such as Dell). There are no channel intermediaries i.e. distributors, retailers or wholesalers. Therefore - 'direct' in the sense that the deal is done directly between the manufacturer and the customer. Definition: One who sells goods or commodities directly to consumers. These items are purchased from the manufacturer or wholesaler and sold to the end user at a marked up price Examples:Wal-Mart is a well-known large chain retailer. Another example of a retailer would be the small family-operated pharmacy on the corner.
  • __________________________________________Distribution channel is “a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user” (3)the distribution channel enhances a company’s operations by dealing with customers more efficiently. The channel is not only a market supplier but also a partner of the company that works as a team to achieve higher quality performances. Thus, utilizing the distribution channel effectively is considered as one of primary factors of accomplishing a successful marketing.InformationFor example, a multinational company's Chinese distributor can potentially tap into his government sources and provide timely information about impending regulatory changes that could prove valuable in adjusting strategies ahead of the competition.Promotiondevelops marketing strategies, including preparing the marketing budget, designing the promotional and advertising material. The channels can adjust their marketing efforts faster than the head office because they are closer to their customers.ContactFor example, a computer wholesaler's job would be to find computer retailers, while a retailer's job would be to find customers. This can be done through promotions that pull in customers--including attracting them directly to the company's online store--and also through old-fashioned telephone calls and door knocking that push products to customers.MatchingFor example, if a retailer only wants to sell laptops with word-processing software included, the distributor needs to contact her company's nearest manufacturing facility to ensure the laptops are properly configured prior to shipmentNegotiationClosing the sale is part of a channel's negotiation function. For a computer wholesaler, it could mean negotiating price and minimum quantity levels with the retailer. For a master franchise operator (an experienced franchisee with exclusive rights in a region), it could mean negotiating the franchise agreement with a new franchisee and providing training and mentoring services.FinancingA distribution channel partner finances his costs, including buying and storing inventory. For example, a car dealership may arrange financing through the car manufacturer or the local banks or a combinationRiskA distribution channel shares in some of the business risks. For example, if a new product launch does not go well, the distributor may get stuck with excess inventory. There also is the risk of unpaid bills and damaged inventory. Foreign distributors also bear the risk of political and economic uncertainty in their respective countries.Direct Marketinis a channel free approach to distribution and/or marketing communications. So a company may have a strategy of dealing with its customers 'directly,' for example banks (such as CityBank) or computer manufacturers (such as Dell). There are no channel intermediaries i.e. distributors, retailers or wholesalers. Therefore - 'direct' in the sense that the deal is done directly between the manufacturer and the customer. Definition: One who sells goods or commodities directly to consumers. These items are purchased from the manufacturer or wholesaler and sold to the end user at a marked up price Examples:Wal-Mart is a well-known large chain retailer. Another example of a retailer would be the small family-operated pharmacy on the corner.
  • Retailing Strategy: In developing retailing strategy, managers work with the retailing mix, which includes activities related to managing the store and the merchandise in the store. Retailing mix: The goods and services, physical distribution, and communications tactics chosen by a store
  • The collection of goods or services that a businessprovides to consumers. The main characteristics of a company's product assortment are: (1) its length or number of products, (2) its breadth or number of product lines, (3) its depth or number of product varieties within a product line and (4) its consistency or how products relate to each other in a retail environment.The collection of goods or services that a businessprovides to consumers. The main characteristics of a company's product assortment are: (1) its length or number of products, (2) its breadth or number of product lines, (3) its depth or number of product varieties within a product line and (4) its consistency or how products relate to each other in a retail environment.The collection of goods or services that a businessprovides to consumers. The main characteristics of a company's product assortment are: (1) its length or number of products, (2) its breadth or number of product lines, (3) its depth or number of product varieties within a product line and (4) its consistency or how products relate to each other in a retail environment.Look at merchandising policiesStore’s atmosphereDescribes the physical elements in a store's design that appeals to consumers and encourages consumers to buy. Warm, fresh, functional exciting.Exterior Atmospherics-store front, display windows, important to attract new customers. Surrounding businesses, look of the mall etc.Interior Atmospherics-lighting, color, dressing room facilities etcDisplays enhance and provide customers with information.Need to determine the atmosphere that your target market seeks.Return to Content List
  • Price decision1 Service oriented retailer strategy.2 Slim Profit margins, discount retailers, off-price retailers, deep discounters. High | Price Department Stores | Specialty Stores | | | | Min ------------------------------------------------------------Max. Service | | | Superstores | Discount Stores | Factory Outlets | | Low |Promotion Decision
  • Many retailers depend on intermediaries that engage in wholesaling activities � selling products and services for the purposes of resale or business use
  • Marketing logistics are basically the physical distribution of goods. Marketing logistics involve planning, delivering, and controlling the flow of physical goods to a market as well as the material and information necessary to meet customer demands. The demands of the customer must be met at a profit that increases revenue for the orginization.necessary to meet customer demands while still making a satisfactory profit. -from points of origin to point of use to meet the needs of the customers at a profitb) Managing value added flows of materials, final goods and related information between suppliers, company, resellers, and final usersOutbound- The movement of materialassociated with storing, transporting, and distributing goods to its customers.Inbound - The activities of receiving, storing, and disseminating incoming goods or material for use.Reverse-The activities of receiving, storing, and disseminating incoming goods or material for use.Supply Chain Management - Management of material and information flow in a supply chain to provide the highest degree of customer satisfaction at the lowest possible cost.Supply chain management requires the commitment of supply chain partners to work closely to coordinate order generation, order taking, and order fulfillment. They thereby create an extended enterprisespreading far beyond the producer'slocation.
  • -cornerstone of marketing-logistics-has created a need for improved logistics-have created opportunities for major gains in distribution efficiency
  • Outbound- The movement of materialassociated with storing, transporting, and distributing goods to its customers.Inbound - The activities of receiving, storing, and disseminating incoming goods or material for use.Reverse-The activities of receiving, storing, and disseminating incoming goods or material for use.
  • Cost – maximize cost of obtaining logistics objectivesTranspo-nagpapataasng cost dahilsa shipmentsInv- when / how much to order just in timeWare house- storage, distribution automatedOrder process- minimize cost & attaining logistic objecticeORDER PROCESS: Once received, orders must be processed quickly and accurately. Both the company and itscustomers benefit when order processing is carried out efficiently. Most companies now usecomputerized order-processing systems that speed up the order–shipping–billing cycle. Forexample, General Electric operates a computer-based system that, on receipt of a customer's order,checks the customer's credit standing as well as whether and where the items are in stock. Thecomputer then issues an order to ship, bills the customer, updates the inventory records, sends aproduction order for new stock, and relays the message back to the salesperson that the customer'sorder is on its way—all in less than 15 seconds.WAREHOUSING:Every company must store its goods while they wait to be sold. A storage function is neededbecause production and consumption cycles rarely match. A company must decide on how manyand what types of warehouses it needs and where they will be located. The company might use eitherstorage warehouses or distribution centers. Storage warehouses store goods for moderate to long periods.Distribution centers are designed to move goods rather than just store them. They are large andhighly automated warehouses designed to receive goods from various plants and suppliers, takeorders, fill them efficiently, and deliver goods to customers as quickly as possible.INVENTORY:Inventory levels also affect customer satisfaction. The major problem is to maintain the delicatebalance between carrying too much inventory and carrying too little. Carrying too much inventoryresults in higher-than-necessary inventory-carrying costs and stock obsolescence. Carrying too littlemay result in stock outs, costly emergency shipments or production, and customer dissatisfaction.In making inventory decisions, management must balance the costs of carrying larger inventoriesagainst resulting sales and profits.Just-intimesystems require accurate forecasting along with fast, frequent, and flexible delivery so thatnew supplies will be available when needed. However, these systems result in substantial savings ininventory-carrying and handling costs.TRANSPORTATION: Marketers need to take an interest in their company's transportation decisions. The choice oftransportation carriers affects the pricing of products, delivery performance, and condition of thegoods when they arrive—all of which will affect customer satisfaction. In shipping goods to itswarehouses, dealers, and customers, the company can choose among five transportation modes:rail, truck, water, pipeline, and air.Inside, the company's various functional departments must work closely together to maximize thecompany's own logistics performance. Outside, the company must integrate its logistics systemwith those of its suppliers and customers to maximize the performance of the entire distributionsystem.
  • Principles of Marketing Ch 10

    1. 1. Chapter 10Principles of Marketing De Ramos, Mary Grace R. Mendoza, Ghenevel Nagas, Mima Hazel Rafael, Maebelle
    2. 2. Management Channel &Supply ManagementMebelle Rafael &Ghenevel Mendoza
    3. 3. The Nature of Distribution ChannelsIntermediaries play an important role inmatching supply and demand. Product produce narrow assortment but consumer want broad assortment. Intermediaries buy large quantities of many producer and break them into the smaller quantities preferred by consumer.
    4. 4. Distribution Channel FunctionInformation – Gathering and distributionPromotion - develops marketing strategiesEstablishing contract – with prospective buyerMatching – buyer with sellerNegotiation – so ownership can take placeOther function are: Physical distribution Financing -distribution channel partner finances Risk-taking
    5. 5. Number of Channel level The number of intermediary levelindicates the length of the channel.These level can be described as being: Direct marketing channel Indirect marketing channel Business marketing channel are similar in theirdesign except the intermediaries perform functionrelative to the business market than the consumermarket.
    6. 6. Several Types of FlowsPhysical flow of productFlow of ownershipPayment flowInformation flowPromotion flow
    7. 7. Physical flow of product RawMaterial Interface Customer DistributorFactory Retailer or s Company
    8. 8. Payment flow ShopSite Store AuthorizeCustomer Net Gateway Merchant Phone, Fax, w/ Virtual Mail order Terminal
    9. 9. Retailing and wholesaling Include all the activities involved in selling goodsor services directly to final consumer for theirpersonal, non-business use. A retailer is a business whose sales come primarilyfrom retailing. Manufactures, wholesalers, and retailers can all do retailing. Non-store retailing includes selling through direct mail, catalogs, telephone, TV home shopping shows, home and office parties, door-to-door contract, vending machine, the internet, and other direct approaches.
    10. 10. Type of Retailer Amount of Service Product Line Relative PriceRetail organization
    11. 11. Retailers can be offer three level of service:Self- service retailersLimited service retailersFull-service retailers
    12. 12. Retailers can be classified based on the length and breadth of their product assortment Specialty store Department store Supermarket Convenience store Superstore
    13. 13. Off-price retailer buy at less than regular wholesale price and sell at less than retail usually carrying a changing and unstable collection of higher-quality merchandize, often leftover goods, overruns, and irregular obtained from manufacturers at reduced price.
    14. 14. The Primary Types are:Independent off-priceFactor outletWarehouse clubs or wholesaleclubs or membershipwarehouse
    15. 15. FranchiseIs a contractual association between amanufacture, wholesaler, or serviceorganization ( franchiser ) and independentbusiness people ( franchisees ) who buy theright to own and operation one or more units inthe franchise system.
    16. 16. Type from of the chain method of retailing: Voluntary chain Retailer cooperation
    17. 17. Retailer MarketingDecisionsNagas, Mima Hazel
    18. 18. Retailer Marketing Decisions • Target market Retailer • Retail Store • PositioningStrategy • Product & services Retailer assortmentMarketing • Prices • Promotion Mix • Place (location)
    19. 19. Product Assortment & Services Decisions Product Assortment•Brand of Merchandise Merchandising •Events Product Differentiation •Strategies Service Mix Key tool of nonprice Competition for setting one store apart from one another Store’s Atmosphere •Physical layout •“Feel” That suits the target market and moves customers to buy
    20. 20. Retailer’s price, production & place decisions Target market Using ShoppingPrice Decisions Place Decisions Promotion Decisions Product & advertising centers services Personal selling Central Assortment Sale promotion business districts Competition Public relations Power centers Direct marketing Online shopping
    21. 21. Wholesaling Wholesaling includes all activities involved in selling goods andservices to those buying for resale or business use. Wholesalers are those engaged primarily in wholesaling activity.
    22. 22. 1. Selling and Promotion- Wholesalers help one another in reaching out to members of the channel2. Buying and Assortment Building- Wholesalers save their customers much work by building assortments for them to choose from.3. Bulk-Breaking-Wholesalers break large lots into small quantities as a service for their customers.
    23. 23. 4. Warehouse- Wholesalers hold inventories thereby reducing their customers’ risk.5. Transportation- Wholesalers provide quick delivery.6. Financing- Wholesalers finance inventories for their customers thereby moving the risk away from the manufactures.
    24. 24. 7. Risk-Bearing- Wholesalers absorb risk by taking title to the goods they possess.8. Market Information- Wholesalers give information about market conditions to customers.9. Management Services and Advice- Wholesalers help their customers with the training function and show them how to attractively display merchandise, promote merchandise, and establish inventory control systems.
    25. 25. Types of Wholesalers Manufacturer’s Merchant Agent & Brokers Sales Branches Wholesalers and Offices• Independently • Don’t take title • Wholesaling by owned business to the goods sellers of buyers that takes title and perform themselves to the only a few rather than merchandise it function through handles independent wholesalers
    26. 26. Wholesalers Marketing Decisions Wholesalers have faced mounting competitivepressures in recent years. As a result, they have had to improve their strategic decisions. Target Product & Wholesaler Wholesalers Stategy Marketing Mix market service Service Prices positioning Promotion Place (location)
    27. 27. Marketing Logistics andSupply Chain ManagementDe Ramos, Mary Grace R.
    28. 28. Nature & Importance of Marketing LogisticsMarketing Logistics (physical distribution) involves tasks of planning, implementing,and controlling the physical flow of materials andfinal goods. 1. Modern Thinking : a.) outbound distribution inbound distribution reverse distribution b.) supply chain management
    29. 29. Nature & Importance of Marketing Logistics2. Greater emphasis on logistics because: Customer service and satisfaction Major cost element Explosion in product variety Improvements in information technology
    30. 30. Nature & Importance of Marketing Logistics Inbound Outbound logistics logisticsSuppliers Company Resellers Customers Reverse logistics
    31. 31. Goals of the Logistics SystemTo provide a targeted level of customer service at the least cost. Maximize profits, not sales
    32. 32. Major Logistics Functions Order Processing WarehousingTransporta Functions tion Inventory

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