商务英语课件ch13

1、121,Business English,Chapter 13 Distributing Products Presented by 吴德亮管理学院市场学系,132,Distributing Products,133,Objectives and Requirements,1Distribution Channel which ensures that products are distributed to customers effectively and efficiently,134,Main Points of Teaching Content,Explain advantages a

2、nd disadvantages of direct distribution channel. Identify factors that could determine optimal channel of distribution. Differentiate between types of market coverage. Explain how to accelerate the distribution process.,135,Explain how retailers serve customers. Explain how wholesalers can serve. ma

3、nufacturers and retailers. Explain the strategy and benefits of vertical channel integration.,136,Areas of Difficulty,Distribution strategies,137,Distributing Products,138,I Channels of Distribution,Determine how the firms products will be accessible to customers Convenience of place Direct channel

4、Allows full control over price Provides first-hand customer feedback Requires more employees Incurs more expenses to promote product May require selling on credit,9,Definitions,Place refers to how goods and services are made available to customers in the marketplace: Location Physical distribution /

5、 logistics Channels of Distribution:,10,Definitions,Distribution Channels A set of interdependent organizations involved in the process of making a product available for use or consumption by the end user.,1311,Channels of Distribution,One-Level Channel One marketing intermediary is between the prod

6、ucer and the customer Merchants Agents Two-Level Channel Two marketing intermediaries are between the producer and the customer Small businesses may use agents to generate sales to retailers,1312,One-Level Distribution Channel,Exhibit 13.1,1313,Two-Level Distribution Channel,Exhibit 13.2,1314,Compar

7、ison of Common Distribution Systems,Exhibit 13.3,1315,1316,II Optimal Distribution Channel,Depends on products characteristics Ease of transporting If product is easy to transport, use of intermediary is more likely If product is difficult to transport, use of direct channel is more likely Degree of

8、 standardization Standardized products more likely to use intermediary Ability to fulfill Internet orders Internet ordering allows use of direct channel,1317,III Degree of Market Coverage,Degree of product distribution among outlets Provide easy customer access to products Ensure that outlet is capa

9、ble Intensive distribution across most or all possible outlets Selective distribution through selected outlets Exclusive distribution through only one or a few outlets,13-18,Intensive distribution(密集分销渠道）: -channel policy in which a manufacturer of a convenience product attempts to saturate the mark

10、et Selective distribution（选择分销渠道）: -channel policy in which a firm chooses only a limited number of retailers to handle its product line Exclusive distribution（独家分销渠道）: -channel policy in which a firm grants exclusive rights to a single wholesaler or retailer to sell its products in a particular geo

11、graphic area,1319,Alternative Degrees of Market Coverage,Exhibit 13.4,1320,Selecting Transportation Mode,Cost of transporting products can exceed production costs Important to select most efficient mode of transportation that is appropriate Firm should estimate timing, cost, and availability before

12、selecting a mode of transportation Truck, rail, air, water, pipeline,1321,Additional Transportation Decisions,Determine efficient way to load products Create best route to distribute product to outlets Determine appropriate number of transporters Decide if all of the companys products should be deli

13、vered at the same time, or separately Estimate costs of all possible transportation modes and select most efficient,Table 13.2: Comparison of Transport Modes,1323,IV Accelerate Distribution Process,Important to get products into the hands of customers as quickly as possible Slow delivery may cause c

14、ustomers to buy from a competitor Reduction in distribution time can enhance firms value Allows firm to get paid sooner and be able to reinvest those funds,1324,A Restructured Distribution Process,Exhibit 13.5,1325,Relationship between Production and Distribution,Exhibit 13.6,1326,Methods of Acceler

15、ation,Streamline distribution channels Eliminate warehouses Deliver direct to customers Integrate production and distribution processes Maintain adequate inventory to avoid shortages Use E-marketing to process orders and keep track of inventory,1327,Retailers,Valuable intermediaries that distribute

16、products directly to customers Number of outlets Independent retail store versus chain store Chain stores get lower prices by buying in bulk Chain stores gain national reputation Quality of service Full-service store versus self-service store Variety of products offered Specialty retailer versus var

17、iety retail store,1328,Non-Store Retailers,Mail-order retailers Receive orders over the phone or through the mail Works well for products that are light, somewhat standardized, and do not need to be serviced Websites Firm does not have to send out catalogs Cuts costs and allows changes to be made ea

18、sily and often Vending machines,1329,Wholesalers,Intermediaries who purchase products from manufacturers and sell them to retailers Serve manufacturers Warehousing Providing sales expertise Delivery to retailers Assumption of credit risk Information,1330,Wholesalers,Serve retailers Warehousing Allow

19、s retailer to order in smaller quantities Promotion Increase sales by retailers Displays Attract customer attention Credit Information Inform retailers about competitors policies,1331,Steps Involved in the Production and Distribution of Products,Exhibit 13.7,1332,Vertical Channel Integration,Two or

20、more levels of distribution are managed by a single firm Manufacturer decides to open its own retail stores Retailer decides to produce its own products, rather than buying products from a manufacturer Must consider costs and benefits before deciding to vertically integrate,Conventional vs. Vertical

21、 Marketing System,1334,Trade-off from Using Vertical Integration.,Exhibit 13.8,Channel Behavior and Organization,Conventional Distribution Channels Consists of one or more independent channel members Lack leadership and power Often result in poor performance Vertical Marketing Systems Consists of me

22、mbers acting as a unified system Use contracts, ownership or power,Goal 1: Know why companies use channels and understand their functions,Channel Behavior and Organization,Corporate VMS Contractual VMS Administered VMS,Corporation owns production and distribution Coordination and conflict through re

23、gular organizational channels,Vertical Marketing Systems,Goal 2: Learn how channel members interact and how they organize,Channel Behavior and Organization,Corporate VMS Contractual VMS Administered VMS,Individual firms who join through contracts Franchise organizations Manufacturer-sponsored retail

24、er franchise system Manufacturer-sponsored wholesaler franchise system Service-firm-sponsored retailer franchise system,Vertical Marketing Systems,Goal 2: Learn how channel members interact and how they organize,Channel Behavior and Organization,Corporate VMS Contractual VMS Administered VMS,Leaders

25、hip through the size and power of dominant channel members Leadership could be manufacturer or retailer,Vertical Marketing Systems,Goal 2: Learn how channel members interact and how they organize,39,Corporate VMS,More than one stage of the distribution channel under one ownership, IE supermarket cha

26、ins that own processing plants and large retailers that purchase wholesaling and production facilities. Examples: Sears Sherwin Williams Giant Foods Gallo Banana Republic Hallmark The Gap Oil Companies,40,Administered VMS,Channel members are independent with a high level of inter-organisational mana

27、gement by informal coordination; Agree to adopt uniform accounting policies etc., and promotional activities. Examples: Wal Mart Toys R Us Kellog Pepsi Coke GE P&G,41,Contractual VMS,Most popular VMS, inter-organisational relationships formalized through contracts that spell out each members rights

28、and obligations. IE McDonalds and KFC. Franchise organizations 1/3 retail sales and 500,000 outlets.,Vertical Marketing System,Corporate ( e.g. Supermarkets who own food processing plants) Contractual (e.g. Franchise such as McDonalds & KFC) Administered (e.g. Marks & Spencer exercising strong influ

29、ence over small independent suppliers),Channel Behavior and Organization,Horizontal Marketing Systems Companies at the same level work together with channel members Multichannel Distribution Systems Also called hybrid marketing channels Occurs when a firm uses two or more marketing channels Changing

30、 Channel Organization Disintermediation,Goal 2: Learn how channel members interact and how they organize,Channel Design Decisions,Step 1: Analyzing Consumer Needs Cost and feasibility of meeting needs must be considered Step 2: Setting Channel Objectives Set channel objectives in terms of targeted l

31、evel of customer service Many factors influence channel objectives,Goal 3: Know the major channel alternatives open to a company,Channel Design Decisions,Step 3: Identifying Major Alternatives Types of intermediaries Company sales force, manufacturers agency, industrial distributors Number of market

32、ing intermediaries Intensive, selective, and exclusive distribution Responsibilities of channel members,Goal 3: Know the major channel alternatives open to a company,Channel Design Decisions,Step 4: Evaluating Major Alternatives Economic criteria Control issues Adaptive criteria,Goal 3: Know the major channel alternatives open to a company,CHANNEL STRATEGY DECISIONS,Channel design includes decisions concerning channel length and channel width Factors which impact the selection of a marketing channel include:,Selection of a Marketing Channel,Table 13.1: Factors Influencing Marketin