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 Warehou
2、sing 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 cu
3、stomers.,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 f
4、unction (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 (零级渠道)-direct marketing channelMRC (一级渠道)MWRC (二级渠道)MWJRC (三级渠道),indirect marketing channel,A marketing channel that has no intermediary levels.,Channel containing one or more intermediary levels.,M-CServices often use direct channels since the service provider, in m
6、ost cases, must be there to provide the service. Simplest method, not necessarily the most effective, eg. Avon, Amway.,M-R-CLarge retailers (eg. Wal-Mart), no discrepancy in quantity supplied and demanded. Popular in consumer market for clothing, automobiles. Cost of transportation and inventory are
7、 high.,M-W-R-CUsed by small manufacturers of food, drugs, hardware, and other products. Smaller retailers, widely distributed products, convenience products.,M-W-J-R-CA number of small producers provides convenience products. eg. In the meatpacking industry, jobbers buy from wholesalers and sell to
8、smaller retailers who generally are not served by large wholesalers.,Width of distribution,wide channel with intermediary,narrow channel with intermediary,Intensive Distribution (密集型分销)Selective Distribution (选择性分销)Exclusive Distribution (专营性分销),Width of distribution,Intensive Distribution:A form of
9、 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 distribution is commo
10、n 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,Retailing Product l
11、ines Relative prices Retail organizationsWholesaling,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 Store These are us
12、ually 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 is often open
13、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 service the shop
14、 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 shops under on
15、e 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 stores offer a v
16、ariety 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 supermarket is its si
17、ze, 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 to a number of
18、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.,Retailing,3. Prices
19、 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 out stock kee
20、ping methods (zero storage). This policy. However, saves costs and ensures that the goods are always fresh.,Retailing,4. Shopping Mall (“摩尔” “销品贸”，意为超大型购物中心 ) A shopping mall is a building or set of buildings that contain stores and have interconnecting walkways that make it easy for people to walk
21、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 tour etc., the
22、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 prices form m
23、anufacturers 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 independent ret
24、ailer 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 can be obtain
25、ed.,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.(专卖店) the multiple vari
26、ety chain store which sells a variety of goods.(综合连锁商店),零售商的主要类型：,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 and is theref
27、ore 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 he feels will
28、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 wholesalerbuy products and resell them. Functional wholesalerdo n
29、ot 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 surely be very ti
30、me-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 wholesaler.,M,M,R,R
31、,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 necessary),Wholesalin
32、g,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 out of fashion.
33、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 batches of good
34、s. 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,go
35、ods immediate paymentpayment by credit goods,Manufacturer,Wholesaler,Retailers,Retailers,Retailers,Wholesaling,5. The wholesaler can buy goods from manufacturers throughout the year even thought demand is “seasonal”. For example Christmas card. Retailers sells Christmas card for the Christmas period
36、, but manufacturers produce these all the year round and supply them to wholesalers who have the task of storing them for sale at the appropriate time. The wholesaler then plays an important part in smoothing out supply and demand fluctuation. Sometimes the situation is reversed: supply is seasonal
37、but demand is regular throughout the year. Such as fruit, much of the fruit grown is harvested at a certain time of the year and then stocked. Large quantities are produced and the wholesaler will take these large quantities, selling them to retailers at regular intervals.,Wholesaling,supplies supplies wholesalerwholesaler at all year around withcertain times of goods seasonallyyear with goods demanded seasonally producedsupplies retailer supplies retailerseasonally produced at certain timesgoods at all times of the yearof the year,Manufacturer,Wholesaler,Retailers,
