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Chapter. Distributing Products Quickly and Efficiently. 15. 15- 1. Channel of Distribution. Marketing Intermediaries Wholesaler Retailer Agents/Brokers Role of Intermediaries Create Efficiency Value vs. Cost. Wholesale Intermediaries. Merchant Wholesalers Full-Service
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Chapter Distributing Products Quickly and Efficiently 15 15-1
ChannelofDistribution • Marketing Intermediaries • Wholesaler • Retailer • Agents/Brokers • Role of Intermediaries • Create Efficiency • Value vs. Cost
Wholesale Intermediaries • Merchant Wholesalers • Full-Service • Limited-Function • Rack Jobbers • Cash-and-Carry • Drop Shippers • Business to Business (B2B)
The Wheel of Retailing 2. Retail Outlet 3. Retail Outlet • Higher Prices • Higher Status • Adds Service • Raises Prices • Better Location Passage of Time 4. New Outlet Enters 1. Retail Outlet Starts • Low Price • Limited Service • Low Price • Limited Service • Out-of-way Location
Retail Store Distribution • Intensive • Selective • Exclusive
Non-Store Distribution • E-tailing • Telemarketing • Vending Machines, Kiosks, Carts • Direct Selling • Multilevel Marketing • Direct Marketing
It isn’t secure It will jeopardize my privacy Usually must pay shipping charges Not enough selection Can’t touch/try things first No satisfaction guarantee Returns are a hassle Won’t arrive on time Hard to find things online Enjoy getting out of house to shop Why People Don’t Shop Online Source: blink, www.earthlink.net/blink
Necessary Website Features Source: “Dreaming of a Green Christmas”, Newsweek, November 11, 2002, p. E24
Channel Cooperation • Corporate Distribution • Contractual Distribution • Administered Distribution • Supply Chain Management
Logistics • Physical Distribution • Inbound • Materials • Outbound • Reverse • Information
Railroad Motor Vehicles Water Pipeline Air Intermodal Warehousing Storage Distribution Transportation & Storage Modes