当代商业概论Fundamentalsofusiness

1、当代商业概论当代商业概论 fundamentals of businesslecture 5:distribution and business plan writingwhat to cover today：1. distribution and market coverage2. channels of distribution 3. intermediaries 4. physical distribution and transportation 5. developing a business plan exercises distribution 分销分销 is:- the cha

2、nnels or pathways by which a firms products are made accessible to its customersmarket coverage 市场覆盖市场覆盖 is:- the degree of product distribution among outlets to cover the marketmarket coverage can be classified as:intensive distribution: across most or all possible outlets to ensure easy access by

3、consumers, products that do not take up much space and do not require expertise, e.g. cigarettes, chewing gum, soft drink selective distribution: through selected outlets, and some outlets are intentionally avoided, to create prestige or guarantee specialized service e.g. victorias secrets: via upsc

4、ale department stores onlyexclusive distribution: through only one or few outlets, an extreme form of s distribution, e.g. luxury watches, high-quality jewelry: one particular specialty storenthe higher the price, the more selective the market coverage.marketing research and market coverage nmarketi

5、ng research can help a firm determine the optimal type of coverage by identifying where consumers desire to purchase products or services. na dvd producer: grocery stores, retail stores, video stores, supermarket; amount of money customers are willing to pay at each type of storenralph lauren: compa

6、ny-owned stores in trendy neighborhoods and resorts, “store within a store” in department stores such as marcys channels of distribution 分销渠道分销渠道 is:- the specific method a firm uses to sell and deliver its products or services to customersndirect channel: involves no intermediariesnone-level channe

7、l: involves retailersntwo-level channel: involves wholesalers and retailers 2.1 comparison of three distribution channels “the direct model eliminates the need to support an extensive network of wholesale and retail dealers, thereby avoiding dealer markups 加价加价; avoids the higher inventory costs ass

8、ociated with the wholesale/retail channel and the competition for retail shelf space. in addition, the direct model allows the company to maintain, monitor, and update a customer database that can be used to shape the future product offerings. this direct approach allows the company to rapidly and e

9、fficiently deliver relevant technology to its customers.” - dell annual report question: what are the advantages of the direct channel as foregrounded here?case study: direct channel of delldirect channel nthe producer deals directly with customersne.g. amway, insurance companies, dhc, 凡客诚品, lands e

10、nd, dell npossible promotion mix: rely more on personal selling, pr, direct mail, and the internet (increasing popularity)nadvantage: full control over the marketing mix (esp. price & promotion); higher profit (no markup, the full difference between the cost and the price goes to the producer);

11、firsthand feedbackndisadvantage: more sales & delivery employees; more promotion expanses; less coverage/accessone-level channel none marketing intermediary (the retailer) is involved between the producer and the customerne.g. time warner: its film company movie theaters, its record company musi

12、c shopsnpossible promotion mix: rely more on media ads and sales promotiontwo-level channelntwo marketing intermediaries (the wholesaler & the retailer) are involved between the producer and the customerne.g. anheuser-buschs budweiser beer: the producer 900 beer wholesalers countless retail outl

13、ets such as grocery stores, convenience stores, supermarkets, vending machinesnpossible promotion mix: rely more on media ads and sales promotion2.2 factors affecting the choice of distribution channelsnmarket coveragenproduct characteristics: standardized products (apples, napkins) are more likely

14、to involve intermediaries than complex products (computers, cars, customerized furniture), because the latter require more expertise, specialized service, and greater communication between the buyer and the seller nease of transportation: the more transportable a product is, the more likely it is to

15、 involve intermediaries, e.g. built-in swimming pools vs. aboveground poolsnuse of multiple channels - institutions or individuals that participate in the process of moving products from the producer to the customer pmerchants: become owners of products and then resell them; can be further classifie

16、d as:nwholesalers 批发商批发商: buy products from the producer in large quantities and resell them to retailers nretailers 零售商零售商: sell products to end consumers pagents 代理商代理商 & brokers 经纪人经纪人: match sellers and buyers (wholesalers, retailers, or both) of products without becoming owners; permanent (

17、agents) vs. deal-by-deal (brokers)3.1 wholesalers o full-service wholesalers o limited-function wholesalers nrack jobbers 货架批发商货架批发商ncash and carry wholesalers 付款提货批付款提货批发商发商ndrop shippers 订货批发商订货批发商3.2 retailers o store retailing ndepartment storesndiscount storesnsupermarketsnhypermarkets ngeneral

18、 storesnspecialty stores o nonstore retailing nvirtual storesnvending machines nmail-order houses ndirect selling ncarts and kiosks nmlm3.3 agents & brokers o commonly used by small businesses with unknown brands that may not receive orders from wholesalers or retail outlets, or by foreign compa

19、nies to explore the market and “test the water”o e.g. an entrepreneur creates a new paint product may use an agent to convince a representative (also called a buyer) of home depot, who will decide whether home depot should carry this products in its retail stores. an agent can be critical to the suc

20、cess of such a firm. for all your home improvement needs: appliances, bathroom decorating ideas, kitchen remodeling, patio furniture, power tools, bbq grills, carpeting. back3.4 value added by intermediaries o time utility 时间便利o place utility 地点便利o ownership utility 所有权便利o form utility 商品整理便利o infor

21、mation utility 信息便利o service utility 服务便利modes of transportation:nrail: mainly for wholesalersntruck: mainly for retailers npipeline: for liquid & gas nwater: for bulk cargos, esp. international tradenair: for light, costly goodscase study: streamline the logistic process in toyota the selection

22、 of proper transportation is merely the first step in developing a proper system for delivering products efficiently. toyota used to let its finished cars sit in its kentucky factory, until it had a large batch to send by rail to various dealerships around the country. now it immediately sends its f

23、inished vehicles by rail to a sorting dock, where they are sorted and then delivered to various cities nearby. consequently the cars no longer sit at the factory, and the distribution time has been reduced by 2 day. in reality, no formulas are available to determine the ideal transportation system.

24、most firms compare the estimated time and expenses of each possible method, and then select the most time-/cost-efficient one. - a detailed description of the proposed business, including a description of the product or service, the types of customers it would target, the competition, and the facili

25、ties needed for production - a checklist for entrepreneurs to ensure that them have considered all the key functions of the business - a formal document to provide to potential investorsstructure of a typical business plan 1. description and ownership of proposed business 2. assessment of the busine

26、ss environment (marketing research)economic environment industry environmentglobal environment3. management plan organizational structureproduction process human resources4.marketing plantarget marketproduct characteristicspricing distribution promotion5.financial plan funds needed feasibility 6.summary appendices online resources for creating a businessnyahoo!s small business site http:/namerican express http:/ business administrat