Understanding business 8th by mcchugh nickels chapter 15

* * * Distributing Products Quickly and Efficiently Nickels * McHugh McGraw-Hill/Irwin Understanding Business, 8e * * CHAPTER ** 15 McHugh 1-1 15-1 © 2008 The McGraw-Hill Companies, Inc., All Rights * * * Channel of Distribution • Marketing Intermediaries • Wholesaler • Retailer • Agents/Brokers • Role of Intermediaries • Create Efficiency • Value vs Cost 15-2 * * * Distribution Effect on Your Food Dollar (In cents) 15-3 * * * They All Started in 1962 Company 1st Store Goal Wal-Mart Rogers, Ark Slash prices Makeup July 1962 difference in volume Target Roseville, MN Discount retailer with May 1962 strong sense of value Kmart Garden City, MI Bring discount store concept to suburban malls Source: walmart.com, target.com, kmart.com; Business 2.0, June 2003 March 1962 15-4 * * * U.S and International Wal-Mart Stores 2006 US Retail Units Wal-Mart International Source: Wal-MartFacts.com, 2006 15-5 * * * Utilities Created by Intermediaries Form Time Possession Place Information Service 15-6 * * * Wholesale Intermediaries • Merchant Wholesalers • Full-Service • Limited-Function • Rack Jobbers • Cash-and-Carry • Drop Shippers • Agents and Brokers 15-7 * * * Retail Distribution Strategy • Intensive • Selective • Exclusive 15-8 * * * Identify a Retailer In Your Area • Supermarket • Convenience Store Discount Store • • Department • Store Category Killer • Specialty Store • Factory Outlet • Superstores • Catalog • Showroom Warehouse club 15-9 * * * Largest Mall in USA • THE MALL OF AMERICA in Bloomington, Minnesota • Large enough to hold Thirty-two 747’s • Four Gap stores • Aquarium • Full-size amusement park • More than 40 million visitors a year  (more than Disney World, Graceland and the Grand Canyon combined) Source: The Week magazine, April 2004 15-10 * * * The Wheel of Retailing New Outlet Enters Low Price Retail Outlet Starts Low Price Low Low Price Price Limited Limited Service Service Low Price Limited Service Service Limited Out-of-way Out-of-way Location Location Passage Of Time Retail Outlet Higher Higher Higher Prices Prices Higher Higher Status Status Retail Outlet  Adds Adds Service Service Adds Service Raises Raises Prices Prices Better Better Location Location 15-11 * * * Nonstore Distribution • Electronic retailing • Telemarketing • Vending Machines, Kiosks, Carts Direct Selling • • Multilevel Marketing • Direct Marketing 15-12 * * * Top Internet Shopping Sites By Millions of Visitors in October 2005 Source: Investors Business Daily, November 23, 2005 15-13 * * * Top Internet Comparison-Shopping Sites By Millions of Visitors in October, 2005 Source: Investors Business Daily, November 2005 15-14 * * * 10 Ways to Increase Sales on eBay Accept multiple payment options Take good pictures Write detailed, compelling descriptions Work to maintain your eBay feedback rating Provide good customer service Open an eBay Store Let them Buy It Now Choose Multiple listing categories and upgrade features Try shorter auction times 10 Offer satisfaction guarantees, warranties, or returns Source: allbusiness.com, accessed August 9, 2006 15-15 * * * Why People Don’t Shop Online Source: Forrester 15-16 * * * Channel Cooperation • Corporate Distribution • Contractual Distribution • Administered Distribution • Supply Chain Management 15-17 * * * The Supply Chain 15-18 * * * Logistics • Physical Distribution • Inbound • Materials handling • Outbound • Reverse • Information 15-19 * * * Transportation & Storage Modes • Railroad • Motor Vehicles • Water • Pipeline • Air • Intermodal • Warehousing • Storage • Distribution 15-20 ... kmart.com; Business 2.0, June 2003 March 1962 15- 4 * * * U.S and International Wal-Mart Stores 2006 US Retail Units Wal-Mart International Source: Wal-MartFacts.com, 2006 15- 5 * * * Utilities Created by. .. Internet Shopping Sites By Millions of Visitors in October 2005 Source: Investors Business Daily, November 23, 2005 15- 13 * * * Top Internet Comparison-Shopping Sites By Millions of Visitors... satisfaction guarantees, warranties, or returns Source: allbusiness.com, accessed August 9, 2006 15- 15 * * * Why People Don’t Shop Online Source: Forrester 15- 16 * * * Channel Cooperation • Corporate Distribution