4. Physical Distribution The tasks involved in planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit (Kotler and Armstrong, 2001)
7. OUR AIM!!! OUR PRODUCT/SERVICE TO BECOME AVAILABLE TO OUR TARGET CUSTOMERS IN THE TIME , QUANTITY , QUALITY , COST, FORM, AND LOCATION THAT THEY WANT Easier said than done!
11. Structure of Marketing Channels Producer User User User Distr. Distr. Agent Industrial Goods Marketing Channels Producer Producer Provider Agent User
12. Distribution channels for services Service provider Channel Intermediaries Consumer or industrial customer Service provider Consumer or industrial customer
13. Characteristics of Services Intangibility - Lack of tangible assets which can be seen, touched, or smelled prior to purchase. Perishability - Inability of a service to be inventoried or stored. Inseparability - Simultaneous production and consumption of a service. Variability - Unwanted or random levels of service quality customers receive when they patronize a service firm.
21. Market Coverage INTENSIVE Penetration Mass Market Low Involvement Low Price SELECTIVE Penetr./Skimming Differentiated Av. Involvement Average Price EXCLUSIVE Skimming Niche High Involvement High Price
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25. What about web sites and services? Navigation, Design, Information, Security, Feedback, Range Interaction Points, Actual Premises
Obviously there is a considerable difference in the quantity and cost of materials involved, but at least some of the price differential is due to the fact that the double-glazing firm employs salespeople who call on one customer at a time, and the windows are all tailor-made as one-off orders; the economies of scale involved in the tuna example ensure that price remains low, even when the cans are shipped across the world.
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