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İntroduction to Business 2 BUS 102. Erlan Bakiev, Ph. D. Distribution Strategies. Marketing Intermediaries. Retailers. Wholesalers. Place. Time. Possession. Wholesalers and Retailers. Utility Value. Match Buyers and Sellers. Provide Market Information. Provide Promotion
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İntroduction to Business 2BUS 102 Erlan Bakiev, Ph. D. Zirve University BUS 102
Marketing Intermediaries Retailers Wholesalers
Place Time Possession Wholesalers and Retailers Utility Value
Match Buyers and Sellers Provide Market Information Provide Promotion and Sales Support Gather Assortment of Goods Transport and Store Products Assume Risks Provide Financing Seven Roles of Marketing Intermediaries
Full-Service Real Estate Agents Rack Jobbers Securities Brokers Limited-Service Insurance Brokers Drop Shippers Manufacturer’s Reps Types of Wholesalers Merchants Agents or Brokers
Save Time Save Money Build Traffic Add Convenience Benefits of Retailers
Specialty Store Department Store Category Killer Discount Store Limited Products Customer Services Category Dominance Lower Prices Extensive Selection Wide Variety Wide Variety Wide Variety Types of Retail Stores
Oversupply of Store Space Weakened Economy Consumer Demographics Nonstore Retailing and E-Commerce Retail Industry Challenges
Clicks-Only Internet Clicks-and-Bricks Mail-Order Firms Automatic Vending Interactive Kiosks E-Commerce and Non-Store Formats
Retailing Innovations Multichannel Retailing Hybrid Formats Retail Theater Pop-Up Stores
Critical Thinking • How can BİM be both a wholesaler and a • retailer at the same time? • 2. Moving to he future, what effect is online • retailing likely to have on the over-supply • of retail store space in Turkiye? • 3. Would it ever make sense for Amazon to • open retail stores? Why or why not?
Distribution Mix Type of Product Marketing Practices Customer Needs and Expectations Product Support Requirements Segmentation, Targeting, Positioning Competitor’s Distribution Channels Established Industry Patterns Setting Distribution Strategies
Consumer Goods and Services Producer Producer Retailer Producer Wholesaler Retailer Producer Agent/Broker Wholesaler Retailer Business Goods and Services Producer Producer Wholesaler Distribution Channel Length Consumer Consumer Consumer Consumer Business User Business User
Market Coverage Control Cost Channel Conflict Channel Selection
Market Coverage Distribution Intensive Selective Exclusive Convenience Goods and Organizational Supplies Expensive Technical or Specialty Products
Selling Storage Distribution Cost Factors
Control Issues Channel Length Shorter Longer How Goods Are Sold in the Marketplace Overall Control More Less
Inadequate Product Support Too Many Intermediaries Multiple Sales Channels Channel Conflict
Critical Thinking • Does exclusive distribution limit the • potential size of manufacturer's market? • Why or why not? • 2. İs the continuing growth of e-commerce • likely to increase or decrease instances of • channel conflict? Explain …
Managing Physical Distribution In-House Operations Outbound Transportation
In-House Operations • Forecasting • Order processing • Inventory control • Warehousing • Materials handling
Outbound Transportation Mode Cost Flexibility Capacity Reliability Speed Rail Truck Water Air Pipeline Average Average Lower Higher Average Lower Average Average Higher Lower Higher Lower Higher Lower Average Higher Higher Average Average Higher Average Average Lower Higher Lower
Critical Thinking • İf another high-tech company approached • Dell with partnership proposal to build • and operate several distribution centers • that would ship both companies’ products • to customers, what would you advice Dell • to do? Why? • 2. Given huge volume of small packages that • Amazon ships every year, should it consider • starting its own transportation company • instead of giving all that business to FedEx and • other shipping companies? Why or why not?