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1、Distribution/Place DecisionDistribution DecisionsDistribution is about getting the productsto the customer. Some examples ofdistribution decisions include: Distribution channels Market coverage (intensive, selective, or exclusive distribution) Specific channel members Inventory management Warehousin
2、g Distribution centers Order processing Transportation Distribution-activities that make products available to customers when and where they need them. A channel of distribution or marketing channel is a group of individuals and organizations that directs the flow of products from producers to custo
3、mers.Channel Design DecisionsAnalyzing consumer service needsSetting channel objectives & constraintsIdentifying major alternativesEvaluating the major alternativesDesigning international distribution channelsDistribution Channel Length of distribution channel Number of individual entities compr
4、ising the channel of distribution between the producer and the consumer. Width of distribution channel Number of different entities available for providing the same distribution function (as a distributor, wholesaler, or retailer) at different stages in a distribution channel. Determine the length o
5、f distribution channelDetermine the width of distribution channel The figure shows the channels of distribution. You will notice that goods reach the consumer by one of a number of routes.ManufacturersconsumersWholesalersretailersManufacturers own shops or tied shopsLength of distribution M-C (零级渠道)
6、-direct marketing channel MRC (一级渠道) MWRC (二级渠道) MWJRC (三级渠道)indirect marketing channelA marketing channel that has no intermediary levels.Channel containing one or more intermediary levels. M-C Services often use direct channels since the service provider, in most cases, must be there to provide th
7、e service. Simplest method, not necessarily the most effective, eg. Avon, Amway.ManufacturerConsumer M-R-C Large retailers (eg. Wal-Mart), no discrepancy in quantity supplied and demanded. Popular in consumer market for clothing, automobiles. Cost of transportation and inventory are high.Manufacture
8、rConsumerRetailer M-W-R-C Used by small manufacturers of food, drugs, hardware, and other products. Smaller retailers, widely distributed products, convenience products.ManufacturerConsumerRetailerwholesaler M-W-J-R-C A number of small producers provides convenience products. eg. In the meatpacking
9、industry, jobbers buy from wholesalers and sell to smaller retailers who generally are not served by large wholesalers.ManufacturerConsumerRetailerwholesalerJobberWidth of distributionMWWWCCCCCCCMWCCCCwide channel with intermediarynarrow channel with intermediary Intensive Distribution (密集型分销) Selec
10、tive Distribution (选择性分销) Exclusive Distribution (专营性分销)Width of distribution Intensive Distribution: A form of market coverage in which a product is distributed through all available wholesalers or retailers who stock and sell the product in a given market area. Width of distribution Selective Dist
11、ribution: A small number of retail outlets are chosen to distribute the product. Selective distribution is common with products such as computers, televisions household appliances. Width of distribution Exclusive Distribution : Involves limiting distribution to a single outlet. The product is usuall
12、y highly priced, and requires the intermediary to place much detail in its sell. Distribution Retailing Product lines Relative prices Retail organizations WholesalingRetailing Retailing is carried on by businesses which sell goods to the final consumer and most retiling is done by shops. There are m
13、any different types of shops and retail outlets.Retailing1. Independent Retailer/Convenience Store These are usually owned by small businesses, often sole traders. Since they are small they can not buy their goods in bulk and therefore cannot obtain them cheaply. Consequently, prices are often highe
14、r in small shops than in large supermarkets. The small shop is often conveniently placed. And it is often open for much longer hours. The pattern for most people is to do the bulk of their shopping in supermarkets and obtain smaller or overlooked items in the shop.RetailingFacing stiff competition,
15、small shops still survive and they do so for the following reason: they provide a convenient service the shop is around residential area. they often have much more convenient hours of opening. small shops because they know their customers, will often give credit and will put goods “on the slate”. Re
16、tailing2. Departmental/Department Stores A department store has been described as a number of shops under one roof, and in fact each department specializes in a particular range of goods. the big advantage that a departmental store has is that it can offer the shopper the opportunity to do all his/h
17、er shopping under one roof. and even in many cases have lunch during shopping. Departmental stores offer a variety of credit facilities, for example through the use of account cards. Retailing3. Supermarkets and Hypermarkets Supermarkets are usually in the control of multiples, although it is possib
18、le for an independent retailer to open a supermarket. The distinguishing feature of a supermarket is its size, not the type of ownership. A supermarket has floor space of at least 186 square meters. The hypermarkets are very large shops with over 2500 square meters of floor space. Hypermarkets start
19、ed in France. Retailing The growth of supermarkets in the past ten years or so has been due to a number of factors:1. They usually stock a wide range of goods so that once in, the shopper can obtain all requirements.2. The goods are on display and are selected by the customer, therefore resulting in
20、 less labor being required with a corresponding saving in costs and therefore prices. Retailing 3. Prices are often also low because goods can be bought in bulk at a discount. 4. Supermarkets stock only goods with a quick turnover (goods which sell well). Supermarkets concentrate on stocking the min
21、imum but never running out. This is a delicate balance and requires the use of well thought out stock keeping methods (zero storage). This policy. However, saves costs and ensures that the goods are always fresh.Retailing4. Shopping Mall (“摩尔摩尔” “销品贸销品贸”,意为超大型购物中心,意为超大型购物中心 ) A shopping mall is a bu
22、ilding or set of buildings that contain stores and have interconnecting walkways that make it easy for people to walk from store to store. The walkways may or may not be enclosed. In the United Kingdom and Australia these are called shopping centers or shopping arcades. Shopping mall is a newly comp
23、lex business-style, update of hypermarket, which is combination by shopping, entertainment, dining and tour etc.,the feature is the large size in floor, virescence, parking lots with more callings, more stores and multiple services. Retailing5. Off-price Retailers Sell a changing and unstable collec
24、tion of higher-quality merchandise, often leftover goods, overruns, and irregulars obtained at reduced prices form manufacturers or other retailers. They buy at less-than-regular wholesale prices and charge consumers less than reatil. Retailing6. Discount Stores Sells standard merchandise at lower p
25、rices by accepting lower margins and selling higher volume. Retailing7. Voluntary Retail Chains An independent retailer cannot obtain the benefit of bulk buying and often has to buy small quantities at high prices from the wholesaler. In order to try to reduce prices many independent retailers have
26、organized themselves into groups. Orders for goods are placed through the group and higher discounts can be obtained.Retailing8. Multiple Shops (GB)/Chain Stores (US) Its multiple shop. As the name suggests, these are shops operated by large companies with numerous branches. There are two types of m
27、ultiples: specialty shops which specialist in the sale of a fairly narrow range of goods.(专卖店) the multiple variety chain store which sells a variety of goods.(综合连锁商店) 零售商的主要类型零售商的主要类型:综合商店综合商店专业商店专业商店百货商店百货商店超级市场超级市场便利店便利店折扣商店折扣商店大卖场大卖场购物中心购物中心邮购商店邮购商店自动售货机自动售货机网上商店网上商店Wholesaling Retailers do not
28、stock large quantities of any one type of goods and this means that he obtains few of his goods direct from the manufacturer. The wholesaler occupies a place between manufacturer and retailer and is therefore sometimes known as a “middleman”.Wholesaling Retailer deals with wholesalers in a number of
29、 different ways: In some cases, he places his orders with wholesalers representatives who visit his shop from time to time. For other goods he will visit wholesalers warehouses. Select what he feels will sell well and then place orders. Wholesalers always ask retailers to do cash-and-carry business.
30、 As the term “cash-and-carry” suggests he pays for the goods and takes them away on the same day. WholesalingTypes of wholesalerMerchant wholesaler buy products and resell them. Functional wholesaler do not take title, they expedite exchanges among producers and resellers, compensated by fees and/or
31、 commission. Wholesaling The wholesalers service to the Manufacturers and Retailers. Without wholesalers, retailers have to order goods from large numbers of manufacturers and this would surely be very time-consuming both for the retailers and the manufacturer. By channeling orders through a wholesa
32、ler the retailer needs to contact only one source for most of his goods. Wholesaling Following figure shows the reduction in the number of contacts which results from the presence of a wholesaler. MMRRRRMMWRRRRWholesaling Advantages of wholesalers presentation:1. By selling a lot of goods to one sou
33、rce the manufacture can save:transport cost administration costssimplify paperwork. (Each order involve paperwork and this of course will be saved if fewer orders are necessary)Wholesaling2. As pointed out earlier, the wholesaler stores his goods in warehouses. There are expensive in terms of rent a
34、nd labor and these costs are saved by the manufacturer.3. The wholesaler can take some of the risks from the manufacturer. Goods are sometimes produced which go quickly out of fashion. Often it is the wholesaler who takes this risk, sometimes being left with stock which has gone out of demand.Wholes
35、aling4. Wholesalers also help manufacturers and retailers with cash problems. Manufacturers often want their money quickly back, so that they can buy materials for new batches of goods. If they sold directly to small retailers they might have to wait because the small retailers often requires some credit perhaps one month. Wholesalers may assist manufacturers by paying quickly for large supplies but then giving credit to retailers as shown in the following figu
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