1. MARKETING
DECISIONS

2. Retailers

3. FIRSTLY, know your target market well.

4. With that in mind

5. Make good product combinations
LIKE THE MCDONALDS MEAL.

6. Secondly, choose the right channels.

7. What’s suitable for your target market?
Traditional retail chains?

8. Direct response internet site?
Virtual malls?
Multiple link on affiliated
sites?

9. Thirdly, the right product assortment.

10. A bookstore featuring a coffee shop
would be perfect!

11. And lastly,
the key positioning factor,
PRICE IT WISELY.
CUSTOMER
RETAILER

12. High Volume * High Gross Margin ?
It’s usually
High Volume * Low Markup
OR
Low Volume * High Markup

13. Wholesalers
Why are they even there in the chain?! What do they do?!

14. Can manufacturers
reach all the small business
customers?
Okay, maybe they can.
But, at a relatively low cost?
Not really.

15. Can manufacturers build
good assortments AND
warehouse goods
despite their already
heavy workload?
They might be capable.
But that’s too tedious a task.

16. Hence, the inclusion of
wholesalers.

17. Market Logistics
Major decisions to be made here..

18. How should the order be handled?
Shorten the “order-to-payment” cycle.
Longer cycle  Lower customer satisfaction  Lower profits

19. Where to locate the stock and how much to stock?
Centralize inventory in one place according to order-processing.
Use fast transportation to fill orders.
Cost reduced.

20. How to ship goods?
Many options here- rail, air, truck, waterway or pipeline.
Choice will affect product pricing,
on-time delivery performance
and condition of goods.

21. The choices will in turn affect customer satisfaction

22. THANK YOU
Created by Shravya Ramesh,SVCE Chennai, during an internship by
Prof. Sameer Mathur, IIM Lucknow.