Principles of marketing: Lecture 31 provide students with knowledge about: simple marketing system; channel members add value; distribution channel functions; evaluation of channel alternatives; channel management decisions;... Please refer to this lesson for details!
MGT301 Principles of Marketing Lecture31 Summary of Lecture30 Retailing and Wholesaling Today’s Topics Review 3rd P (Place) Place….Distribution Channel….Marketing Channel Simple Marketing System Communication Product/Service Producer/Seller Money Feedback Consumer Right Place Right Cost Right Product Right Time Right Condition Manufacturer Customer Manufacturer Customer Manufacturer Customer Manufacturer Customer Manufacturer 20 Contacts Manufacturer Customer Manufacturer Manufacturer Wholesaling Intermediary Manufacturer Customer Customer Customer Manufacturer Contacts Amount Amount of of Service Service Self-Service, Self-Service, Limited-Service Limited-Service and and Full-Service Full-Service Retailer Retailer Product Product Line Line Length Length and and Breadth Breadth of of the the Product Product Assortment Assortment Relative Relative Prices Prices Pricing Pricing Structure Structure that that is is Used Used by by the the Retailer Retailer Retail Organizations Independent, Corporate, or Contractual Ownership Organization Nonstore Retailing Mail MailOrder Order ••Catalogs Catalogs from fromclothing clothingto tocomputers computers ••Direct DirectMail Mail brochure brochureoffering offeringaaproduct product or orservice serviceat atone onepoint pointin intime time Direct DirectSelling Selling ••Door-to-Door Door-to-DoorSales Sales declining decliningin inU.S U.S ••Parties Parties&&Networks Networks presentations presentations ••Telemarketing Telemarketing over overthe thephone phone Automatic AutomaticVending Vending ••Best Bestsuited suitedto toinexpensive inexpensivemerchandise merchandise and andfood foodand andbeverages beverages Direct DirectResponse ResponseTelevision Television ••Home HomeShopping ShoppingNetworks Networks TV TVchannels channels that thatsell sellproducts products What is Wholesaling? All the activities involved in selling goods and services to those buying for resale or business use Wholesaler those firms engaged primarily in wholesaling activity Customer Expectations for Wholesaling Easy Easy Inquiry Inquiry and and Order Order Error-Free Error-Free Invoicing Invoicing Accuracy Reliable Delivery On-time On-time Delivery Delivery Post-Sales Post-Sales Support Support Easy EasyClaims Claims Handling Handling Suppliers’ Suppliers’ Logistics LogisticsSystems Systems Warehouse and MaterialsHandling Receive goods into warehouse Functions of Materials Handling Identify, sort, and label goods Dispatch the goods to temporary storage Recall, select, or pick the goods for shipment Types of Wholesalers Merchant Merchant Wholesaler Wholesaler Independently IndependentlyOwned Owned Business Businessthat thatTakes Takes Title Titleto tothe the Merchandise Merchandise ititHandles Handles Brokers/ Brokers/ Agents Agents They They Don’t Don’t Take TakeTitle Titleto to the theGoods, Goods,and andThey They Perform Perform Only OnlyaaFew Few Functions Functions Manufacturers’ Manufacturers’ Sales Sales Branches Branches and and Offices Offices Wholesaling Wholesalingby bySellers Sellers or orBuyers BuyersThemselves Themselves Rather Rather Than ThanThrough Through Independent Independent Wholesalers Wholesalers Right Place Right Cost Right Product Right Time Right Condition Compete on value (not just price.) Save customers time and energy Make shopping fun Enough for Place. . Summary Next… MGT301 Principles of Marketing Lecture31 ... Wholesaler Business User Evaluation? ?of? ?Channel Alternatives Economic Criteria – Potential sales, costs and profits? ?of? ?channels Control Criteria Amount? ?of? ?control company has over sales efforts... Save customers time and energy Make shopping fun Enough for Place. . Summary Next… MGT301 Principles? ?of? ?Marketing Lecture? ?31 ... Information technology has created opportunities for major gains in distribution efficiency. Classification? ?of? ?Retailing Retailing and Wholesaling Amount Amount of of Service Service Self-Service, Self-Service, Limited-Service Limited-Service