Jobber: Principles & Practice of Marketing

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Principles and Practice of Marketing
fourth edition
DAVID JOBBER
Chapter 17
Distribution
D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill
How a channel intermediary
increases distribution efficiency
P
1
C
3 2
P
4
5
6
C
P
7
8
9
C
Direct distribution
P = Producer
C = Customer
Number of Contacts = Number of Producers X Number of Customers
D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill
How a channel intermediary
increases distribution efficiency
P
P
1
C
2
I
C
3
P
C
Distribution using a channel intermediary
P = Producer
C = Customer
I = Channel intermediary
Number of Contacts = Number of Producers + Number of Customers
D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill
Distribution channels for consumer
goods
Producer
Consumer
Producer
Producer
Producer
Agent
Retailer
Consumer
Wholesaler
Retailer
Consumer
Wholesaler
Retailer
Consumer
D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill
Distribution channels for cosmetics in
Japan
Manufacturer
Manufacturer’s
own marketing
companies or
contracted
dealers
Specialist retailers
tied by franchise
Agreements
(cosmetics shops)
Specialist
cosmetics
wholesalers
Marketing companies with branches
Secondary
wholesalers
Sales
personnel
Retail shops
Department
stores
Supermarkets
Pharmacies
Consumers
D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill
Food
Beauty
salons
Distribution channels for industrial
goods
Industrial
Consumer
Producer
Producer
Agent
Producer
Producer
Agent
D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill
Distributor
Industrial
Consumer
Distributor
Industrial
Consumer
Distributor
Industrial
Consumer
Distribution channels for services
Consumer or
industrial customer
Service
provider
Service
provider
D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill
Agent
Consumer or
industrial customer
Channel strategy
Channel
strategy
Channel
selection
Distribution
intensity
D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill
Channel
integration
Channel management
Channel
management
Selection
Motivation
D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill
Training
Evaluation
Managing
conflict
Components of the physical
distribution system
Physical
distribution
system
Customer
service
Inventory
control
Order
processing
D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill
Transportation
Warehousing
Materials
handling
Inventory control
Inventory
Maximum
Inventory
Lead
Time
Inventory
level
Order point
Safety stock
level
Order
placed
D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill
Order
received
Time
Determining the economic order quantity
Total
costs
Cost per
unit
Inventory
cost
Order
processing
cost
Economic
order quantity
D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill
Order quantity
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