recoverd ppt file(15)
TRANSCRIPT
MGT301MGT301Principles of MarketingPrinciples of Marketing
Lecture-31Lecture-31
SummarySummaryof of
Lecture-30Lecture-30
Retail ing and WholesalingRetail ing and Wholesaling
Today’s TopicsToday’s Topics
Review 3rd P (Place)Review 3rd P (Place)
Place….Distribution Place….Distribution Channel….Marketing ChannelChannel….Marketing Channel
Simple Marketing SystemSimple Marketing System
Producer/Seller Consumer
Communication
Product/Service
Money
Feedback
Right Product
Right Cost
Right Place
Right Condition
Right Time
20 Contacts
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Customer
Customer
Customer
Customer
9 Contacts
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Customer
Customer
Customer
Customer
Wholesaling Intermediary
How Channel Members Add Value?How Channel Members Add Value?
Channel members add value by bridging the major time, place Channel members add value by bridging the major time, place and possession gaps that separate goods and services from and possession gaps that separate goods and services from
those who would use them.those who would use them.
ContactContact
FinancingFinancing
InformationInformationRisk TakingRisk Taking
PromotionPromotion
MatchingMatchingNegotiationNegotiation
PhysicalDistribution
PhysicalDistribution
Distribution Channel FunctionsDistribution Channel Functions
MM WW JJ RR CC→ → → →
MM WW RR CC→ →
MM RR CC→
MM CC
Channel 1
Channel 2
Channel 3
Channel 4
Direct
In-Direct
ProducerAgent/Broker
Wholesaler Retailer Consumer
Producer Wholesaler Retailer Consumer
Producer Retailer Consumer
Producer Consumer
Marketing Channels for Consumer Marketing Channels for Consumer GoodsGoods
ProducerAgent/Broker
WholesalerBusiness
User
Producer WholesalerBusiness
User
ProducerBusiness
User
ProducerBusiness
User
Agent/Broker
Marketing Channels for Business Marketing Channels for Business GoodsGoods
Evaluation of Channel AlternativesEvaluation of Channel Alternatives
Economic CriteriaEconomic Criteria– -Potential sales, costs and profits of channels-Potential sales, costs and profits of channels
Control CriteriaControl Criteria -Amount of control company has over sales efforts-Amount of control company has over sales efforts
Adaptive CriteriaAdaptive Criteria -flexibility of channel to adapt to changing situations-flexibility of channel to adapt to changing situations
SelectingSelecting
MotivatingMotivating
EvaluatingEvaluating
FE
ED
BA
CK
Channel Management DecisionsChannel Management Decisions
The channel wil l be most effective when..The channel wil l be most effective when.. Each member is assigned tasks it can do best.Each member is assigned tasks it can do best. All members cooperate to attain overall channel goals and All members cooperate to attain overall channel goals and
satisfy the target market.satisfy the target market.
Conventional Distribution Channel Conventional Distribution Channel vs. Vertical Marketing Systemsvs. Vertical Marketing Systems
VerticalVerticalMarketingMarketingChannelChannel
Manufacturer
Retailer
ConventionalConventionalMarketingMarketingChannelChannel
Consumer
Manufacturer
Consumer
Retailer
Wholesaler
Wh
ole
sale
r
Channels of distribution
Two differentperspectivesTwo differentperspectives
Logistic ManagementLogistic Management
Logistics(Physical distribution)
Channels of distribution
Two differentperspectivesTwo differentperspectives
Producer
End users
End users
Interme-diaries
Interme-diaries
Producer
Marketingactivities Demand
Demand Demand
Push Strategy
Pull Strategy
Marketing activities
Demand
Marketing Logistics and Supply Marketing Logistics and Supply Chain ManagementChain Management
Functions of Logistics SystemsFunctions of Logistics Systems
InventoryWhen to order
How much to orderJust-in-time
InventoryWhen to order
How much to orderJust-in-time
CostsMinimize Costs ofAttaining Logistics
Objectives
CostsMinimize Costs ofAttaining Logistics
Objectives
WarehousingStorage
Distribution
WarehousingStorage
Distribution
Order ProcessingSubmittedProcessed
Shipped
Order ProcessingSubmittedProcessed
Shipped
Logistics
FunctionsTransportation Water, Truck, Rail, Pipeline & Air
Customer Service ConceptCustomer Service Concept Customer service is the ability of logistics management to Customer service is the ability of logistics management to
satisfy users in terms of:satisfy users in terms of: - time- time - dependability- dependability - communication- communication - convenience- convenience
Companies today place greater emphasis on logistics Companies today place greater emphasis on logistics
because…..because…..
– Effective logistics is becoming a key to winning and keeping Effective logistics is becoming a key to winning and keeping customers.customers.
– Logistics is a major cost element for most companies.Logistics is a major cost element for most companies.
– The explosion in product variety has created a need for The explosion in product variety has created a need for improved logistics management.improved logistics management.
– Information technology has created opportunities for major Information technology has created opportunities for major gains in distribution efficiency.gains in distribution efficiency.
Classif ication of Retail ingClassif ication of Retail ing
Retailing and WholesalingRetailing and Wholesaling
Amount of Service
Self-Service, Limited-Service andFull-Service Retailer
Amount of Service
Self-Service, Limited-Service andFull-Service Retailer
Product LineLength and Breadth of the Product
Assortment
Product LineLength and Breadth of the Product
Assortment
Relative PricesPricing Structure that is Used
by the Retailer
Relative PricesPricing Structure that is Used
by the Retailer
Retail OrganizationsIndependent, Corporate, or Contractual
Ownership Organization
Nonstore Retail ingNonstore Retail ing
Mail Order• Catalogs - from clothing to computers
• Direct Mail - brochure offering a product or service at one point in time.
Mail Order• Catalogs - from clothing to computers
• Direct Mail - brochure offering a product or service at one point in time.
Direct Selling• Door-to-Door Sales - declining in U.S.• Parties & Networks - presentations
• Telemarketing - over the phone
Direct Selling• Door-to-Door Sales - declining in U.S.• Parties & Networks - presentations
• Telemarketing - over the phone
Automatic Vending• Best suited to inexpensive merchandise
and food and beverages.
Automatic Vending• Best suited to inexpensive merchandise
and food and beverages.
Direct Response Television• Home Shopping Networks - TV channels
that sell products
Direct Response Television• Home Shopping Networks - TV channels
that sell products
What is Wholesaling?What is Wholesaling?
All the activities involved in selling goods and services to those All the activities involved in selling goods and services to those buying for resale or business use.buying for resale or business use.
Wholesaler - those firms engaged primarily in wholesaling Wholesaler - those firms engaged primarily in wholesaling activity.activity.
Customer Expectations for Customer Expectations for WholesalingWholesaling
Suppliers’ Logistics SystemsSuppliers’ Logistics Systems
AccuracyEasy
Inquiryand
Order
EasyInquiry
andOrder Reliable
DeliveryOn-timeDelivery
On-timeDelivery
Error-FreeInvoicing
Error-FreeInvoicing
Post-SalesSupport
Post-SalesSupport
Easy ClaimsHandling
Easy ClaimsHandling
Warehouse and Warehouse and Materials-HandlingMaterials-Handling
Functionsof
Materials Handling
Receive goods into warehouse
Dispatch the goods totemporary storage
Recall, select, or pick the goods for shipment
Identify, sort, and label goods
Types of WholesalersTypes of Wholesalers
Merchant Wholesaler
Independently Owned Business that Takes
Title to the Merchandise
it Handles.
Merchant Wholesaler
Independently Owned Business that Takes
Title to the Merchandise
it Handles.
Manufacturers’Sales Branches
and OfficesWholesaling by Sellersor Buyers Themselves Rather Than Through
IndependentWholesalers.
Manufacturers’Sales Branches
and OfficesWholesaling by Sellersor Buyers Themselves Rather Than Through
IndependentWholesalers.
Brokers/ AgentsThey Don’t Take Title to
the Goods, and TheyPerform Only a Few
Functions.
Brokers/ AgentsThey Don’t Take Title to
the Goods, and TheyPerform Only a Few
Functions.
Right Product
Right Cost
Right Place
Right Condition
Right Time
Compete on value (not just price.)Compete on value (not just price.)Save customers time and energy.Save customers time and energy.
Make shopping fun.Make shopping fun.
Enough for Place. . .Enough for Place. . .
SummarySummary
Next….Next….
MGT301MGT301Principles of MarketingPrinciples of Marketing
Lecture-31Lecture-31