Bài giảng Understanding Business - Chapter 15 Distributing Products

Distributing ProductsChapter 15 Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/IrwinExplain the concept of marketing channels and their value.Demonstrate how intermediaries perform the six marketing utilities; Identify the types of wholesale intermediaries in the distribution system.Compare the distribution strategies retailers use; Explain the various kinds of non-store retailing.Explain the various ways to build cooperation in channel systems.Describe logistics and outline how intermediaries manage the transportation and storage of goods.LEARNING GOALSChapter Fifteen15-2The Emergence of Marketing Intermediaries Marketing Intermediaries -- Organizations that assist in moving goods and services from businesses to businesses (B2B) and from businesses to consumers (B2C).They are called intermediaries because they’re in the middle of a series of firms that distribute goods.WHAT are MARKETING INTERMEDIARIES?LG115-3Channel of Distribution -- A group of marketing intermediaries that joining together to transport and store goods from producers to consumers.WHAT are MARKETING INTERMEDIARIES?LG1The Emergence of Marketing Intermediaries 15-4Agents and Brokers -- Intermediaries who bring buyers and sellers together and assist in negotiating an exchange but do not take title to the goods.Wholesaler -- An intermediary that sells products to other organizations such as retailers, manufacturers, and hospitals.Retailer -- An organization that sells products to ultimate customers.TYPES of MARKETING INTERMEDIARIES?LG1The Emergence of Marketing Intermediaries 15-5SELECTED CHANNELS of DISTRIBUTIONLG1The Emergence of Marketing Intermediaries 15-6Why Marketing Needs Intermediaries Intermediaries perform marketing tasks faster and cheaper than most manufacturers could provide them.WHY MARKETING NEEDS INTERMEDIARIESMarketing intermediaries make markets more efficient by reducing transactions and contacts.LG115-7HOW INTERMEDIARIES CREATE EXCHANGE EFFICIENCYLG1How Intermediaries Create Exchange Efficiency 15-8The Value vs the Cost of Intermediaries Marketing intermediaries can be eliminated but their activities can’t.Intermediaries perform marketing functions faster and cheaper than other organizations can.Marketing intermediaries add costs to products but they’re generally offset by the values they provide.THREE KEY FACTS ABOUT MARKETING INTERMEDIARIES LG115-9The Utilities Created by IntermediariesUtility -- The want-satisfying ability, or value, that organizations add to goods and services by making them more useful or accessible to consumers.Six types of utilities:FormTimePlacePossessionInformationService INTERMEDIARIES CREATE UTILITYLG215-10Form Utility -- Changes raw materials into useful products; producers generally provide form utility.Starbucks makes coffee the way the customers want it.Dell assembles computers according to customer needs.Time Utility -- Makes products available when customers want them.Many Walgreens stores are open 24-hours a day.Colleges offer day and evening classes.HOW MARKETERS USE UTILITYLG2The Utilities Created by Intermediaries15-11Place Utility -- Adds value to products by placing them where people want them.Banks place ATMs at convenient locations.7-11 stores are found in easy-to-reach locations.Possession Utility -- Helps transfer ownership from one party to another, including providing credit.Pay for lunch at McDonalds with your Visa card.A savings and loan office offers loans to home/car buyers.HOW MARKETERS USE UTILITYLG2The Utilities Created by Intermediaries15-12Information Utility -- Opens two-way flows of information between marketing participants.Websites offer advice to shoppers.Local government maps show tourist locations.Service Utility -- Provides service during and after a sale and teaches customers how to best use products.Apple offers classes to help computer buyers.College placement offices help students find jobs.HOW MARKETERS USE UTILITYLG2The Utilities Created by Intermediaries15-13Wholesale Intermediaries Wholesalers normally make B2B sales, however, stores like Staples and Costco also have retail functions.Retail sales are sales of goods and services to customers for their own use.Wholesale sales are sales of goods and services to other businesses for use in the business or resale.Consumers are more familiar with retailers than wholesalers. WHOLESALE INTERMEDIARIES LG315-14Merchant Wholesalers -- Independently owned firms that take title to the goods they handle. There are two types:Full-service wholesalers perform all distribution functions.Limited-function wholesalers perform only selected distribution functions.TYPES of WHOLESALE INTERMEDIARIES LG3Wholesale Intermediaries 15-15Rack Jobbers -- Furnish racks or shelves of merchandise such as music and magazines for retailers for display and sell them on consignment.Cash-and-Carry Wholesalers -- Serve mostly smaller retailers with a limited assortment of products.Drop Shippers -- Take orders from retailers and other wholesalers and have the merchandise shipped from producer to buyer.TYPES of LIMITED-FUNCTION WHOLESALERSLG3Wholesale Intermediaries 15-16Agents and Brokers Agents generally maintain long-term relationships with the clients they represent.ROLES of AGENTS and BROKERSManufacturer’s agents represent several manufacturers in a specific territory.Sales agents represent a single client in a larger territory. Brokers usually represent clients on a temporary basis.LG315-17Retail Intermediaries There are approximately 2.3 million retailers in the U.S., not including websites.RETAILING in the U.S.Retailers in the U.S. employ over 11 million people and operate under many different structures.Fastest growing retailer categories:Video games; Sports and fitness; Home, garden, and furniture; Event tickets; Consumer electronicsLG415-18COUPON: Make sure your coupons are unique; have clear expiration dates and rules; Train staff on how to spot fraudulent coupons.RETURN POLICY: Always require receipts for returns; Shred receipts so they cannot be used to return stolen goods; Check for tampering; Have customers fill out a return form and check details.HOW to PREVENT  FRAUDLG4Retail Intermediaries Source: Entrepreneur, December 2010.15-19TYPES of RETAIL STORESTypesExamplesDepartment StoreSears, JC Penney, NordstomDiscount StoreWal-Mart, TargetSupermarketSafeway, Kroger, Albertson’sWarehouse ClubCostco, Sam’s ClubConvenience Store7-ElevenCategory KillerToys-R-Us, Bass Pro Shops, Office DepotOutlet StoreNordstrom Rack, TJ Maxx, Nike OutletSpecialty StoreJewelry store, shoe stores, bicycle shopsLG4Retail Intermediaries 15-20Retail Distribution Strategy Intensive Distribution -- Puts products into as many retail outlets as possible. Selective Distribution -- Uses only a preferred group of the available retailers in an area.Exclusive Distribution -- The use of only one retail outlet in a given geographic area. RETAIL DISTRIBUTION STRATEGIESLG415-21Electronic Retailing -- Selling goods and services to ultimate consumers over the Internet.Telemarketing -- The sale of goods and services via the telephone.FORMS of NON-STORE RETAILINGNon-Store RetailingVending machines dispense convenience goods when consumers deposit sufficient money.LG515-22Convenient return policiesEstablished brandsUser reviewsProfessional site designAlternative payment optionsWHAT ONLINE STORES NEEDImportant Features on E-Commerce Web SitesSource: GSI Commerce; Harris Interactive.LG5Non-Store Retailing15-23Direct Selling -- Selling goods and services to customers in their homes or workplaces.Multilevel marketing uses salespeople who work as independent contractors.Direct Marketing -- Any activity that directly links manufacturers or intermediaries with ultimate customers.FORMS of NON-STORE RETAILINGLG5Non-Store Retailing15-24Building Cooperation in Channel SystemsCorporate Distribution SystemsContractual Distribution SystemsAdministered Distribution SystemsSupply ChainsThe FOUR SYSTEMS of CHANNEL RELATIONSHIPSLG615-25Corporate Distribution Systems -- Exist when one firm owns all the organizations in a channel of distribution.Examples:GoodyearSherwin WilliamsCORPORATE DISTRIBUTION SYSTEMSLG6Corporate Distribution SystemsPhoto Courtesy of: Doug Wilson15-26Contractual Distribution Systems -- Exist when members are bound to cooperate through contractual agreements.Forms of Contractual Systems:Franchise Systems: McDonald’s, Baskin-RobbinsWholesale-Sponsored Chains: IGA, Ace HardwareRetail Cooperatives: Associated Grocers, True ValueCONTRACTUAL DISTRIBUTION SYSTEMSLG6Contractual Distribution Systems15-27Administered Distribution Systems -- Exist when producers manage all the marketing functions at the retail level.Examples:KraftRalph LaurenADIMINISTERED DISTRIBUTION SYSTEMSLG6Administered Distribution SystemsPhoto Courtesy of: Stephen Boisvert15-28Supply Chain -- All the linked activities various organizations must perform to move goods and services from the source of raw materials to ultimate consumers.Supply Chain Management -- The process of managing the movement of raw materials, parts, work in progress, finished goods, and related information through all the organizations in the supply chain.SUPPLY CHAINSLG6Supply Chains15-29The SUPPLY CHAINLG6Supply Chains15-30Much movie animation takes place in the Philippines while companies in China provide research and development services. The competition among foreign suppliers is intense, including the need to find workers with strong language skills. One country that could be a leader in supplying supply-chain services is the U.S. The GLOBAL SUPPLY CHAIN for SERVICES(Reaching Beyond Our Borders)15-31Logistics: Getting Goods to Consumers Efficiently Logistics -- The planning, implementing and controlling of the physical flow of material, final goods and related information from points of origin to points of consumption.USING LOGISTICSFirms outsource to others specializing in trade compliance to determine what is needed to market products to global customers.LG715-32Inbound Logistics -- Brings raw materials, packaging, other goods and services and information from suppliers to producers.LOGISTICS APPLICATIONSMaterials Handling -- Movement of goods within a warehouse, from warehouse to the factory floor and from the factory floor to workstations.LG7Logistics: Getting Goods to Consumers Efficiently 15-33Outbound Logistics -- Manages the flow of finished products and information to business buyers and consumers.Reverse Logistics -- Brings goods back to the manufacturer because of defects or for recycling.LOGISTICS APPLICATIONSLG7Logistics: Getting Goods to Consumers Efficiently 15-34COMPARING TRANSPORTATION MODESMode Cost SpeedDependability FlexibilityFrequencyReachRailMed.SlowMediumHighLowHighTrucksHighFastHighMediumHighHighestPipelineLowMediumHighestLowestHighestLowestShipsLowestSlowestLowestHighestLowestLowAirHighest FastestLowLowMediumMediumLG7Logistics: Getting Goods to Consumers Efficiently 15-35Freight Forwarder -- Puts many small shipments together to create a single large shipment that can be transported cost-effectively by truck or train.LOGISTICS SPECIALISTSIntermodal Shipping -- Uses multiple modes of transportation to complete a single long-distance movement of freight.LG7Logistics: Getting Goods to Consumers Efficiently 15-36Piggybacking: Truck trailers placed on trainsFishybacking: Truck trailers placed on shipsBirdybacking: Truck trailers placed on planesTYPES of INTERMODAL SHIPPINGLG7Logistics: Getting Goods to Consumers Efficiently LG715-37GET YOUR PRODUCT THEREMost Popular Modes of Freight TransportSource: U.S. Freight Transportation Forecast.LG7Logistics: Getting Goods to Consumers Efficiently Method% of Distributors Trucks69%Trains15%Pipelines10%Ships6%AirUnder 1%15-38The Storage FunctionStorage warehouses hold products for a relatively long period of time. STORAGE WAREHOUSESLG7Distribution warehouses are used to gather and redistribute products such as:Beer and soft drinksPackage deliveries15-39