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Distribution/PlaceDecision,DistributionDecisions,Distributionisaboutgettingtheproductstothecustomer.Someexamplesofdistributiondecisionsinclude:DistributionchannelsMarketcoverage(intensive,selective,orexclusivedistribution)SpecificchannelmembersInventorymanagementWarehousingDistributioncentersOrderprocessingTransportation,Distribution-activitiesthatmakeproductsavailabletocustomerswhenandwheretheyneedthem.Achannelofdistributionormarketingchannelisagroupofindividualsandorganizationsthatdirectstheflowofproductsfromproducerstocustomers.,ChannelDesignDecisions,DistributionChannel,LengthofdistributionchannelNumberofindividualentitiescomprisingthechannelofdistributionbetweentheproducerandtheconsumer.WidthofdistributionchannelNumberofdifferententitiesavailableforprovidingthesamedistributionfunction(asadistributor,wholesaler,orretailer)atdifferentstagesinadistributionchannel.,Thefigureshowsthechannelsofdistribution.Youwillnoticethatgoodsreachtheconsumerbyoneofanumberofroutes.,Manufacturers,consumers,Wholesalers,retailers,Manufacturersownshopsortiedshops,Lengthofdistribution,M-C(零级渠道)-directmarketingchannelMRC(一级渠道)MWRC(二级渠道)MWJRC(三级渠道),indirectmarketingchannel,Amarketingchannelthathasnointermediarylevels.,Channelcontainingoneormoreintermediarylevels.,M-CServicesoftenusedirectchannelssincetheserviceprovider,inmostcases,mustbetheretoprovidetheservice.Simplestmethod,notnecessarilythemosteffective,eg.Avon,Amway.,M-R-CLargeretailers(eg.Wal-Mart),nodiscrepancyinquantitysuppliedanddemanded.Popularinconsumermarketforclothing,automobiles.Costoftransportationandinventoryarehigh.,M-W-R-CUsedbysmallmanufacturersoffood,drugs,hardware,andotherproducts.Smallerretailers,widelydistributedproducts,convenienceproducts.,M-W-J-R-CAnumberofsmallproducersprovidesconvenienceproducts.eg.Inthemeatpackingindustry,jobbersbuyfromwholesalersandselltosmallerretailerswhogenerallyarenotservedbylargewholesalers.,Widthofdistribution,widechannelwithintermediary,narrowchannelwithintermediary,IntensiveDistribution(密集型分销)SelectiveDistribution(选择性分销)ExclusiveDistribution(专营性分销),Widthofdistribution,IntensiveDistribution:Aformofmarketcoverageinwhichaproductisdistributedthroughallavailablewholesalersorretailerswhostockandselltheproductinagivenmarketarea.,Widthofdistribution,SelectiveDistribution:Asmallnumberofretailoutletsarechosentodistributetheproduct.Selectivedistributioniscommonwithproductssuchascomputers,televisionshouseholdappliances.,Widthofdistribution,ExclusiveDistribution:Involveslimitingdistributiontoasingleoutlet.Theproductisusuallyhighlypriced,andrequirestheintermediarytoplacemuchdetailinitssell.,Distribution,RetailingProductlinesRelativepricesRetailorganizationsWholesaling,Retailing,Retailingiscarriedonbybusinesseswhichsellgoodstothefinalconsumerandmostretilingisdonebyshops.Therearemanydifferenttypesofshopsandretailoutlets.,Retailing,1.IndependentRetailer/ConvenienceStoreTheseareusuallyownedbysmallbusinesses,oftensoletraders.Sincetheyaresmalltheycannotbuytheirgoodsinbulkandthereforecannotobtainthemcheaply.Consequently,pricesareoftenhigherinsmallshopsthaninlargesupermarkets.Thesmallshopisoftenconvenientlyplaced.Anditisoftenopenformuchlongerhours.Thepatternformostpeopleistodothebulkoftheirshoppinginsupermarketsandobtainsmalleroroverlookeditemsintheshop.,Retailing,Facingstiffcompetition,smallshopsstillsurviveandtheydosoforthefollowingreason:theyprovideaconvenientservicetheshopisaroundresidentialarea.theyoftenhavemuchmoreconvenienthoursofopening.smallshopsbecausetheyknowtheircustomers,willoftengivecreditandwillputgoods“ontheslate”.,Retailing,2.Departmental/DepartmentStoresAdepartmentstorehasbeendescribedasanumberofshopsunderoneroof,andinfacteachdepartmentspecializesinaparticularrangeofgoods.thebigadvantagethatadepartmentalstorehasisthatitcanoffertheshoppertheopportunitytodoallhis/hershoppingunderoneroof.andeveninmanycaseshavelunchduringshopping.Departmentalstoresofferavarietyofcreditfacilities,forexamplethroughtheuseofaccountcards.,Retailing,3.SupermarketsandHypermarketsSupermarketsareusuallyinthecontrolofmultiples,althoughitispossibleforanindependentretailertoopenasupermarket.Thedistinguishingfeatureofasupermarketisitssize,notthetypeofownership.Asupermarkethasfloorspaceofatleast186squaremeters.Thehypermarketsareverylargeshopswithover2500squaremetersoffloorspace.HypermarketsstartedinFrance.,Retailing,Thegrowthofsupermarketsinthepasttenyearsorsohasbeenduetoanumberoffactors:1.Theyusuallystockawiderangeofgoodssothatoncein,theshoppercanobtainallrequirements.2.Thegoodsareondisplayandareselectedbythecustomer,thereforeresultinginlesslaborbeingrequiredwithacorrespondingsavingincostsandthereforeprices.,Retailing,3.Pricesareoftenalsolowbecausegoodscanbeboughtinbulkatadiscount.4.Supermarketsstockonlygoodswithaquickturnover(goodswhichsellwell).Supermarketsconcentrateonstockingtheminimumbutneverrunningout.Thisisadelicatebalanceandrequirestheuseofwellthoughtoutstockkeepingmethods(zerostorage).Thispolicy.However,savescostsandensuresthatthegoodsarealwaysfresh.,Retailing,4.ShoppingMall(“摩尔”“销品贸”,意为超大型购物中心)Ashoppingmallisabuildingorsetofbuildingsthatcontainstoresandhaveinterconnectingwalkwaysthatmakeiteasyforpeopletowalkfromstoretostore.Thewalkwaysmayormaynotbeenclosed.IntheUnitedKingdomandAustraliathesearecalledshoppingcentersorshoppingarcades.Shoppingmallisanewlycomplexbusiness-style,updateofhypermarket,whichiscombinationbyshopping,entertainment,diningandtouretc.,thefeatureisthelargesizeinfloor,virescence,parkinglotswithmorecallings,morestoresandmultipleservices.,Retailing,5.Off-priceRetailersSellachangingandunstablecollectionofhigher-qualitymerchandise,oftenleftovergoods,overruns,andirregularsobtainedatreducedpricesformmanufacturersorotherretailers.Theybuyatless-than-regularwholesalepricesandchargeconsumerslessthanreatil.,Retailing,6.DiscountStoresSellsstandardmerchandiseatlowerpricesbyacceptinglowermarginsandsellinghighervolume.,Retailing,7.VoluntaryRetailChainsAnindependentretailercannotobtainthebenefitofbulkbuyingandoftenhastobuysmallquantitiesathighpricesfromthewholesaler.Inordertotrytoreducepricesmanyindependentretailershaveorganizedthemselvesintogroups.Ordersforgoodsareplacedthroughthegroupandhigherdiscountscanbeobtained.,Retailing,8.MultipleShops(GB)/ChainStores(US)Itsmultipleshop.Asthenamesuggests,theseareshopsoperatedbylargecompanieswithnumerousbranches.Therearetwotypesofmultiples:specialtyshopswhichspecialistinthesaleofafairlynarrowrangeofgoods.(专卖店)themultiplevarietychainstorewhichsellsavarietyofgoods.(综合连锁商店),零售商的主要类型:,Wholesaling,Retailersdonotstocklargequantitiesofanyonetypeofgoodsandthismeansthatheobtainsfewofhisgoodsdirectfromthemanufacturer.Thewholesaleroccupiesaplacebetweenmanufacturerandretailerandisthereforesometimesknownasa“middleman”.,Wholesaling,Retailerdealswithwholesalersinanumberofdifferentways:Insomecases,heplaceshisorderswithwholesalersrepresentativeswhovisithisshopfromtimetotime.Forothergoodshewillvisitwholesalerswarehouses.Selectwhathefeelswillsellwellandthenplaceorders.Wholesalersalwaysaskretailerstodocash-and-carrybusiness.Astheterm“cash-and-carry”suggestshepaysforthegoodsandtakesthemawayonthesameday.,Wholesaling,TypesofwholesalerMerchantwholesalerbuyproductsandresellthem.Functionalwholesalerdonottaketitle,theyexpediteexchangesamongproducersandresellers,compensatedbyfeesand/orcommission.,Wholesaling,ThewholesalersservicetotheManufacturersandRetailers.Withoutwholesalers,retailershavetoordergoodsfromlargenumbersofmanufacturersandthiswouldsurelybeverytime-consumingbothfortheretailersandthemanufacturer.Bychannelingordersthroughawholesalertheretailerneedstocontactonlyonesourceformostofhisgoods.,Wholesaling,Followingfigureshowsthereductioninthenumberofcontactswhichresultsfromthepresenceofawholesaler.,M,M,R,R,R,R,M,M,W,R,R,R,R,Wholesaling,Advantagesofwholesalerspresentation:1.Bysellingalotofgoodstoonesourcethemanufacturecansave:transportcostadministrationcostssimplifypaperwork.(Eachorderinvolvepaperworkandthisofcoursewillbesavediffewerordersarenecessary),Wholesaling,2.Aspointedoutearlier,thewholesalerstoreshisgoodsinwarehouses.Thereareexpensiveintermsofrentandlaborandthesecostsaresavedbythemanufacturer.3.Thewholesalercantakesomeoftherisksfromthemanufacturer.Goodsaresometimesproducedwhichgoquicklyoutoffashion.Oftenitisthewholesalerwhotakesthisrisk,sometimesbeingleftwithstockwhichhasgoneoutofdemand.,Wholesaling,4.Wholesalersalsohelpmanufacturersandretailerswithcashproblems.Manufacturersoftenwanttheirmoneyquicklyback,sothattheycanbuymaterialsfornewbatchesofgoods.Iftheysolddirectlytosmallretailerstheymighthavetowaitbecausethesmallretailersoftenrequiressomecreditperhapsonemonth.Wholesalersmayassistmanufacturersbypayingquicklyforlargesuppliesbutthengivingcredittoretailersasshowninthefollowingfigure.,Wholesaling,goodsimmediatepaymentpaymentbycreditgoods,Manufacturer,Wholesaler,Retailers,Retailers,Retailers,Wholesaling,5.Thewholesalercanbuygoodsfrommanufacturersthroughouttheyeareventhoughtdemandis“seasonal”.ForexampleChristmascard.RetailerssellsChristmascardfortheChristmasperiod,butmanufacturersproducethesealltheyearroundandsupplythemtowholesalerswhohavethetaskofstoringthemforsaleattheappropriatetime.Thewholesalerthenplaysanimportantpartinsmoothingoutsupplyanddemandfluctuation.Sometimesthesituationisreversed:supplyisseasonalbutdemandisregularthroughouttheyear.Suchasfruit,muchofthefruitgrownisharvestedatacertaintimeoftheyearandthenstocked.Largequantitiesareproducedandthewholesalerwilltaketheselargequantities,sellingthemtoretailersatregularintervals.,Wholesaling,suppliessupplieswholesalerwholesaleratallyeararoundwithcertaintimesofgoodsseasonallyyearwithgoodsdemandedseasonallyproducedsuppliesretailersuppliesretailerseasonallyproducedatcertaintimesgoodsatalltimesoftheyearoftheyear,Manufacturer,Wholesaler,Retailers,
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