Chapter 14 - Dr. Aykan Candemir

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Distribution Strategies
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 14 - 1
Marketing Intermediaries
Retailers
© Prentice Hall, 2007
Wholesalers
Excellence in Business, 3e
Chapter 14 - 2
Wholesalers and Retailers
Utility Value
Place
Time
Possession
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 14 - 3
Seven Roles
of Marketing Intermediaries
Match Buyers
and Sellers
Gather Assortment
of Goods
© Prentice Hall, 2007
Provide Market
Information
Transport and
Store Products
Provide Promotion
and Sales Support
Assume Risks
Excellence in Business, 3e
Provide Financing
Chapter 14 - 4
How Intermediaries Simplify Commerce
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 14 - 5
Types of Wholesalers
Merchants
Agents or Brokers
Full-Service
Real Estate Agents
Rack Jobbers
Securities Brokers
Limited-Service
Insurance Brokers
Drop Shippers
Manufacturer’s Reps
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 14 - 6
Types of Wholesalers
• Full-service merchant wholesalers (Tam Hizmet Toptancıları)
provide a wide variety of services, such as storage, selling, order
processing, delivery, and promotional support.
• Rack jobbers (Raf toptancıları): full-service merchant wholesalers
that set up displays in retail outlets, stock inventory, and mark
prices on merchandise displayed in a particular section of a store.
• Limited-service merchant wholesalers (Sınırlı-Kısıtlı Hizmet
Toptancıları) provide fewer services. Natural resources such as
grain, and coal are usually marketed through a class of limitedservice wholesalers.
• Drop shippers (Deposuz Masabaşı Toptancılar), which take
ownership but not physical possession of the goods they handle.
© Prentice Hall,
2005
Excellence in Business,
Revised Edition
Chapter 14 - 7
Benefits of Retailers
Save Time
Save Money
Build Traffic
Add Convenience
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 14 - 8
Types of Retail Stores
Specialty
Store
Department
Store
Category
Killer
Discount
Store
Limited
Products
Customer
Services
Category
Dominance
Lower
Prices
Extensive
Selection
Wide
Variety
Wide
Variety
Wide
Variety
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 14 - 9
• When you shop in a pet store, a shoe store, or a stationery store,
you are in a specialty store (İhtisas-Özellikli Mağazalar) —a store
that carries only particular types of goods. The basic
merchandising strategy of a specialty shop is to offer a limited
number of product lines but an extensive selection of brands,
styles, sizes, models, colors, materials, and prices within each
line. Specialty shops are particularly strong in certain product
categories: books, children’s clothing, and sporting goods, for
example.
– Birbirine çok yakın birkaç dizi veya çok dar bir dizi
bulundururlar. Örneğin çocuk elbiseleri, mobilya, çiçekçi, spor
mağazaları vb.
• At the other end of the retail spectrum are the category killers
(Kategori Öldüren Mağazalar) —superstores that dominate a
particular product category by stocking every conceivable variety
of merchandise in that category. Home Depot, Toys “R” Us, Office
Depot, and Barnes and Noble are category killers.
– 1980’lerde gelişmiş, dar fakat derin çeşitli, düşük fiyatlı orta
düzeyde servisi olan mağazalar. Yaklaşık 2-3 futbol sahası
büyüklüğünde mağazalar. Örn. IKEA
© Prentice Hall,
2005
Excellence in Business,
Revised Edition
Chapter 14 - 10
• In contrast to category killers, discount
stores offer a wider variety of
merchandise, lower prices, and fewer
services. One of the newest categories of
discounters is supercenters, large
discount stores that offer a broad
selection of groceries, toys, household
items, and other products at discount
prices. Since the early 1990s, Wal-Mart
has opened over 1,140 U.S. supercenters
with an average size of 190,000 square
feet and is now one of the nation’s
largest food retailers
© Prentice Hall,
2005
Excellence in Business,
Revised Edition
Chapter 14 - 11
Retail Industry Challenges
Oversupply of
Store Space
Weakened
Economy
Consumer
Demographics
Nonstore Retailing
and E-Commerce
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 14 - 12
E-Commerce
and Non-Store Formats
Clicks-Only Internet
Clicks-and-Bricks
Mail-Order Firms
Automatic Vending
Interactive Kiosks
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 14 - 13
Retailing Innovations
Multichannel
Retailing
Hybrid Formats
Retail Theater
Pop-Up Stores
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 14 - 14
Setting Distribution Strategies
Distribution Mix
Type of Product
Customer
Needs and
Expectations
© Prentice Hall, 2007
Marketing Practices
Product
Segmentation,
Support
Targeting,
Requirements
Positioning
Excellence in Business, 3e
Competitor’s
Distribution
Channels
Established
Industry
Patterns
Chapter 14 - 15
Distribution Channel Length
Producer
Consumer Goods and Services
Producer
Producer
Producer
Producer
Producer
© Prentice Hall, 2007
Agent/Broker
Consumer
Retailer
Consumer
Wholesaler
Retailer
Consumer
Wholesaler
Retailer
Consumer
Business Goods and Services
Business
User
Business
User
Wholesaler
Excellence in Business, 3e
Chapter 14 - 16
Channel Selection
Market
Coverage
Control
Cost
Channel
Conflict
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 14 - 17
Market Coverage
Distribution
Intensive
Selective
Convenience Goods
and Organizational Supplies
© Prentice Hall, 2007
Excellence in Business, 3e
Exclusive
Expensive Technical
or Specialty Products
Chapter 14 - 18
Cost Factors
Selling
Storage
Distribution
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 14 - 19
Control Issues
Shorter
Channel
Length
Longer
How Goods Are
Sold in the Marketplace
More
© Prentice Hall, 2007
Overall
Control
Excellence in Business, 3e
Less
Chapter 14 - 20
Channel Conflict
Inadequate Product Support
Too Many Intermediaries
Multiple Sales Channels
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 14 - 21
Managing
Physical Distribution
In-House Operations
© Prentice Hall, 2007
Outbound Transportation
Excellence in Business, 3e
Chapter 14 - 22
In-House Operations
• Forecasting
• Order processing
• Inventory control
• Warehousing
• Materials handling
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 14 - 23
Outbound Transportation
Mode
Cost
Flexibility
Capacity
Reliability
Speed
Rail
Average
Lower
Higher
Higher
Average
Truck
Average
Average
Lower
Higher
Average
Water
Lower
Average
Higher
Average
Lower
Air
Higher
Higher
Lower
Average
Higher
Pipeline
Average
Lower
Average
Higher
Lower
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 14 - 24
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