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Chapter 13

GETTING PRODUCTS GETTING PRODUCTS TO CUSTOMERSTO CUSTOMERS

13-1 Marketing through Distribution

13-2 Assembling Distribution Channels

13-3 Wholesaling Manages the Middle

13-4 Retailing Reaches Consumers

13-5 Physical Distribution

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Focus Questions:What is the unique product

or service that UPS is offering to prospective customers in the ad?

Do you believe the simplicity of the advertisement is effective? Why or why not?

©U

PS

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MARKETING THROUGH DISTRIBUTION

GOALSGOALSExplain why the distribution function is

so important to effective marketing.Illustrate how a well-planned

distribution system supports the marketing plan.

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The Importance ofDistribution Activities

Distribution as an economic conceptDistribution as a marketing mix element

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Development ofa Distribution System

Disappointing resultsDecision time

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ASSEMBLINGDISTRIBUTION CHANNELS

GOALSGOALSIdentify the differences between

producers and consumers that are addressed by distribution channels.

Describe the differences between direct and indirect channels of distribution.

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The Need for Distribution Channels

Adjusting differences between producers and consumersDifferences in quantityDifferences in assortmentDifferences in locationDifferences in timing of production and consumption

Providing marketing functionsIncreasing marketing efficiency

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Planning and ManagingChannels of Distribution

Channel participantsChannel membersDirect channelIndirect channel

Developing and managing a channel system

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Multiple Channels of Distribution

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WHOLESALINGMANAGES THE MIDDLE

GOALSGOALSDescribe the benefits that wholesalers

provide to other members of a channel of distribution and to final consumers.

Explain how the role of wholesalers is changing in an economy where many of their traditional retail customers prefer to deal directly with manufacturers.

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Who Needs Wholesaling?

Benefits of wholesalingWholesaling activitiesWholesale clubs

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The Changing Role of Wholesalers

Access to marketsSpecialized services

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RETAILINGREACHES CONSUMERS

GOALSGOALSDefine retailing and describe ways to

distinguish various types of retailers.Describe ways that retailing is changing

in response to changes in consumer preferences and the business environment.

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Types of Retailers

Product mix Product mix Limited-line retailersMixed merchandise

retailersSuperstoresService retailers

LocationLocationConvenience storesShopping centersStand-alone storesNon-store retailing

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How Is Retailing Changing?

Changing types of retailersThe expanding InternetThe growth of franchisingIncreased use of technologyThe shopping experienceThe global marketplace

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PHYSICAL DISTRIBUTION

GOALSGOALSDescribe the various means by which products

are transported within a channel of distribution.Explain the common options for storing and

handling products while they are moving through the distribution channel.

Examine the importance of order processing and inventory control to the overall effectiveness of a physical distribution plan.

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Choosing Transportation Methods

RailroadsTrucksShips and boatsAirplanesPipelinesCombining methods

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Storage and Product Handling

WarehousesDistribution centersPackaging

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Information Processing

Order processingInventory control