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1、Distribution/Place Decision,Distribution Decisions,Distribution is about getting the products to the customer. Some examples of distribution decisions include: Distribution channels Market coverage (intensive, selective, or exclusive distribution) Specific channel members Inventory management Wareho
2、using 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 c
3、ustomers.,Channel Design Decisions,Distribution Channel,Length of distribution channel Number of individual entities comprising the channel of distribution between the producer and the consumer. Width of distribution channel Number of different entities available for providing the same distribution
4、function (as a distributor, wholesaler, or retailer) at different stages in a distribution channel.,The figure shows the channels of distribution. You will notice that goods reach the consumer by one of a number of routes.,Manufacturers,consumers,Wholesalers,retailers,Manufacturers own shops or tied
5、 shops,Length of distribution,M-C (零級渠道)-direct marketing channel MRC (一級渠道) MWRC (二級渠道) MWJRC (三級渠道),indirect marketing channel,A 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,
6、 in most cases, must be there to provide the service. Simplest method, not necessarily the most effective, eg. Avon, Amway.,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 invento
7、ry are high.,M-W-R-C Used by small manufacturers of food, drugs, hardware, and other products. Smaller retailers, widely distributed products, convenience products.,M-W-J-R-C A number of small producers provides convenience products. eg. In the meatpacking industry, jobbers buy from wholesalers and
8、sell to smaller retailers who generally are not served by large wholesalers.,Width of distribution,wide channel with intermediary,narrow channel with intermediary,Intensive Distribution (密集型分銷) Selective Distribution (選擇性分銷) Exclusive Distribution (專營性分銷),Width of distribution,Intensive Distribution
9、: 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 Distribution: A small number of retail outlets are chosen to distribute the product. Selective distribut
10、ion 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 usually highly priced, and requires the intermediary to place much detail in its sell.,Distribution,Retail
11、ing Product lines Relative prices Retail organizations Wholesaling,Retailing,Retailing is carried on by businesses which sell goods to the final consumer and most retiling is done by shops. There are many different types of shops and retail outlets.,Retailing,1. Independent Retailer/Convenience Stor
12、e 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 higher in small shops than in large supermarkets. The small shop is often conveniently placed. And it
13、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.,Retailing,Facing stiff competition, small shops still survive and they do so for the following reason: they provide a convenient se
14、rvice 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”.,Retailing,2. Departmental/Department Stores A department store has been described as a number of
15、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/her shopping under one roof. and even in many cases have lunch during shopping. Departmental st
16、ores offer a variety of credit facilities, for example through the use of account cards.,Retailing,3. Supermarkets and Hypermarkets Supermarkets are usually in the control of multiples, although it is possible for an independent retailer to open a supermarket. The distinguishing feature of a superma
17、rket 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 started in France.,Retailing,The growth of supermarkets in the past ten years or so has been due t
18、o 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 less labor being required with a corresponding saving in costs and therefore prices.,Retai
19、ling,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 minimum but never running out. This is a delicate balance and requires the use of well thought
20、 out stock keeping methods (zero storage). This policy. However, saves costs and ensures that the goods are always fresh.,Retailing,4. Shopping Mall (“摩爾” “銷品貿(mào)”,意為超大型購物中心 ) A shopping mall is a building or set of buildings that contain stores and have interconnecting walkways that make it easy for p
21、eople 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 complex business-style, update of hypermarket, which is combination by shopping, entertainment, dining and t
22、our etc.,the feature is the large size in floor, virescence, parking lots with more callings, more stores and multiple services.,Retailing,5. Off-price Retailers Sell a changing and unstable collection of higher-quality merchandise, often leftover goods, overruns, and irregulars obtained at reduced
23、prices form manufacturers or other retailers. They buy at less-than-regular wholesale prices and charge consumers less than reatil.,Retailing,6. Discount Stores Sells standard merchandise at lower prices by accepting lower margins and selling higher volume.,Retailing,7. Voluntary Retail Chains An in
24、dependent 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 organized themselves into groups. Orders for goods are placed through the group and higher discounts
25、can be obtained.,Retailing,8. 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 multiples: specialty shops which specialist in the sale of a fairly narrow range of goods.(專賣店) the
26、multiple variety chain store which sells a variety of goods.(綜合連鎖商店),零售商的主要類型:,Wholesaling,Retailers do not 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
27、and is therefore sometimes known as a “middleman”.,Wholesaling,Retailer deals with wholesalers in a number of 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 h
28、e feels will sell well and then place orders. Wholesalers always ask retailers to do cash-and-carry business. As the term “cash-and-carry” suggests he pays for the goods and takes them away on the same day.,Wholesaling,Types of wholesaler Merchant wholesaler buy products and resell them. Functional
29、wholesaler do not take title, they expedite exchanges among producers and resellers, compensated by fees and/or 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 su
30、rely be very time-consuming both for the retailers and the manufacturer. By channeling orders through a wholesaler 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 whol
31、esaler.,M,M,R,R,R,R,M,M,W,R,R,R,R,Wholesaling,Advantages of wholesalers presentation: 1. By selling a lot of goods to one source the manufacture can save: transport cost administration costs simplify paperwork. (Each order involve paperwork and this of course will be saved if fewer orders are necess
32、ary),Wholesaling,2. As pointed out earlier, the wholesaler stores his goods in warehouses. There are expensive in terms of rent and 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 o
33、ut of fashion. Often it is the wholesaler who takes this risk, sometimes being left with stock which has gone out of demand.,Wholesaling,4. Wholesalers also help manufacturers and retailers with cash problems. Manufacturers often want their money quickly back, so that they can buy materials for new
34、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 figure.,Wholesaling,goods immediate payment payment by credit g
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