Distributing Products Efficiently and Competitively Supply Chain Management

1. 1

2. 2

3. 3

4. Topic of the Presentation is …
4

5. Marketing Intermediaries
 Marketing
intermediaries,
also known as
middlemen or
distribution
intermediaries, are
an important part
of the product
distribution
channel.
 Agents,
Wholesalers,
Distributors and
Retailers.
5

6. A channel of distribution consists of a whole set
of marketing intermediaries.
 Agent/brokers
 Wholesaler
 Retailer
6

7. Intermediaries perform marketing tasks faster and
cheaper than most manufactures could provide them.
Factors –
Eliminated
Faster and cheaper
Values they provide
Marketing intermediaries make markets more efficient by
reducing transactions and contacts.
7

8. Utilities is the want-satisfaction ability that is goods and services
when the products are made more useful to consumers.
Six utilities are here –
 Form
It consist raw materials and changing
their form so they that become
useful products.
 Time
Adding value to products by making
them available when they are needed.
8

9.  Place
Adding value to products by having
them where people want them.
 Possession
transfer ownership from
one party to another
 Information
Information between marketing
participants
Service
Providing fast, friendly services
9

10. Wholesale Intermediaries
 Customers are use own
 Resale.
 Consumers are more familiar
10

11. Merchant Wholesalers
Independently owned firms that take title to the goods they
handle.
1. Full service wholesalers
E.g. transportation, storage, risk bearing, market
information,
2. Limited function wholesalers
11

12. Retail Intermediaries
A retail intermediaries is a regulated firm that received and transmits
orders in certain financial products and provides advice in relation
to those products
Five major ways---
1. Price
2. Service
3. Location
4. Selection &
5. Entertainment.
12

13. Retail Distribution Strategy
A major decision marketers must make is selecting the right
retailers to sell their products.
There are three categories of retail distribution—
1. Intensive distribution
E.g. candy, gum, and popular magazines.
2. Selective distribution
E.g. furniture, and clothing.
3. Exclusive distribution
E. g. sky diving products.
13

14. Nonstore Retailing
• .
Nonstore Retailing
Retailing is the things of nothing
retailing received more attention
recently then e-tailing. A small
business can be used nonstore
retailing to open up newchannels
of distribution of their
products.
14

15. Selling goods and services to ultimate consumers over
the Internet.
15

16. Telemarketing
The sale of goods and services via the telephone. Those
companies send their products to get only telephone call &
those numbers are toll-free.
16

17. Vending machines, kiosks and carts
This types of dispense convenience goods when consumers deposit
sufficient money in this machines .
The benefits of those types machines many location available like-
Airports office buildings, schools, service station and
other areas.
17

18. Direct Selling & Multilevel Marketing
Selling goods and services to customers in their homes or
workplace.
E.g. encyclopedias
Multilevel marketing uses salespeople who work as independent
contractors. They earn commission on there own sales.
18

19. Direct Marketing
Any activity that directly links manufacturers or intermediaries with
ultimate customers.
E.g. direct sales by Dell computers Gateway, 2000.
19

20. Building Cooperation in Channel Systems
One way is to somehow link the firms together in a formal
relationship.
 Corporate Distribution Systems
 Contractual Distribution System
 Administered Distribution Systems
 Supply Chains
20

21. Contractual Distribution System
A contractual distribution system is one any members are bound to
cooperate through contractual agreements.
Three forms of contractual systems -
i. Franchise systems
ii. Wholesalers sponsored
iii. Retail cooperatives
21

22. Supply Chains
In distribution the supply chain is longer than a channel because it
includes suppliers to manufacturers, whereas the channel of
distribution being with manufacturers.
22

23. Supply Chain Management
Supply Chain Management---
23

24. Supply Chain Management
 The new Challenges in supply Chain Management
24

25. The Right Distribution Mode and Storage
Units
 Intermodal Shipping
 The Storage Function
 Material Handling
25

26. 26

27. 27