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