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Lecture 25

Lecture 25. Chapter 12. Distributing Products. Chapter Outline. The Distribution Mix Wholesaling Retailing Physical Distribution. Wholesaling. Merchant Wholesalers. Full-Service Provide credit, marketing and merchandising service Limited-Function

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Lecture 25

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  1. Lecture 25

  2. Chapter12 Distributing Products

  3. Chapter Outline • The Distribution Mix • Wholesaling • Retailing • Physical Distribution

  4. Wholesaling

  5. Merchant Wholesalers • Full-Service • Provide credit, marketing and merchandising service • Limited-Function • Provide fewer service sometimes only storage, customer pay cash and pick goods • Drop Shippers • Take orders, negotiate, take title to them and arrange for shipment • Rack Jobbers • Market consumer goods directly to retail outlets , marking prices and set displays

  6. Agents/Brokers • Independent Representatives • Work On Commission • Do Not Take Ownership Or Possession • Have Extensive Knowledge Of Market • They Also Provide Services Such As Shelf And Display Merchandizing And Advertising Layouts • Super Market Products Are Handled Through Agents

  7. E-Intermediary • Functions • Collect Information About Sellers For Consumers • Deliver Internet Products To Buyers • Syndicated Sellers • One when website offers another a commission for referring customers • Shopping Agents • Pricescan.com • Business-to-Business Brokers

  8. Retailing

  9. Product Line Retailers • Department Stores • Broad product lines e.g. shoes, furniture • Supermarkets • Departments of related products e.g. food product , house hold product • Specialty Stores • One line of related products

  10. Bargain Retailers • Discount Houses • Catalog Showrooms • Factory Outlets • Warehouse/Wholesale Club • Convenience Stores • Easily accessible, extended store hours

  11. Nonstore/ElectronicRetailing • Direct-Response Retailing • Mail Order- Catalog • Telemarketing • Direct Selling- Door To Door

  12. Electronic Retailing • E-Catalogs • Electronic Storefront • Cybermalls • Interactive Marketing • Video Marketing

  13. Physical Distribution

  14. Types Of Warehouses • Private- Owned By Single Manufacturer, Wholesaler, Retailer • Public- Independently Owned & Operated • Storage- Used For Extended Periods • Distribution Centers – Short Term Storage For Products Whose Demand Is Constant and High

  15. Warehousing Costs • Inventory Control • Materials Handling • Unitization – Standardizing the weight and form of material

  16. Factors In Selecting Transportation Mode • Cost • Nature Of Product • Distance • Speed • Customer Wants/Needs

  17. Transportation Modes • Trucks • Railroads • Planes • Water • Pipelines

  18. TransportationModes Changes • Intermodal- Birdyback • Containerization – standardized heavy duty containers in which many items are sealed • Distribution & E-Customer Satisfaction- Order Fulfillment

  19. Transportation- Hubs • Hub – central distribution outlets that control all or most of a firms distribution activities • Supply-Side • Prestaging • Distribution

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