logging in or signing up marketing manish.singh076 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 3 Category: Entertainment License: All Rights Reserved Like it (0) Dislike it (0) Added: January 31, 2012 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript ETITBMarketing : Dr A Willis 1 ETITBMarketing Week 3 Place / Distribution Slide 2: Dr A Willis 2 Objectives Explain the role of marketing channels and the functions these channels perform. Identify the major channel alternatives open to a company. Explain how businesses select, motivate and evaluate channel members. Isolate the key issues managers face when setting up marketing channel systems. Explain how marketing channels are changing and the implications of these trends to marketers. Place. : Dr A Willis 3 Place. Place is also known as channel, distribution, or intermediary. It is the mechanism through which goods and/or services are moved from the manufacturer/ service provider to the user or consumer. Physical Distribution : Dr A Willis 4 Physical Distribution The tasks involved in planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit (Kotler and Armstrong, 2001) Defining marketing channels : Dr A Willis 5 Defining marketing channels A marketing channel is a structure that links a group of individuals or organisations through which products/services are made available to the consumer or industrial user. The structure of channels can vary depending on the type of market, the needs of the end consumer, and the type of product. Slide 6: Dr A Willis 6 WHERE? HOW? ACCESS NOT JUST BUT THE WHOLE EXPERIENCE!!! OUR AIM!!! : Dr A Willis 7 OUR AIM!!! OUR PRODUCT/SERVICE TO BECOME AVAILABLE TO OUR TARGET CUSTOMERS IN THE TIME, QUANTITY, QUALITY, COST, FORM, AND LOCATION THAT THEY WANT Easier said than done! Slide 8: Dr A Willis 8 Slide 9: Dr A Willis 9 Structure of Marketing Channels : Dr A Willis 10 Structure of Marketing Channels Producer Consumer Consumer Consumer Retailer Retailer Whole. Consumer Goods Marketing Channels Producer Producer Provider Consumer Provider Agent Consumer Structure of Marketing Channels : Dr A Willis 11 Structure of Marketing Channels Producer User User User Distr. Distr. Agent Industrial Goods Marketing Channels Producer Producer Provider Agent User Distribution channels for services : Dr A Willis 12 Distribution channels for services Characteristics of Services : Dr A Willis 13 Characteristics of Services Intangibility - Lack of tangible assets which can be seen, touched, or smelled prior to purchase. Perishability - Inability of a service to be inventoried or stored. Inseparability - Simultaneous production and consumption of a service. Variability - Unwanted or random levels of service quality customers receive when they patronize a service firm. Inseparability : Dr A Willis 14 Inseparability The customer becomes part of the service The employee becomes part of the service The customer and the employee interact with the service delivery system Some Thoughts on Place : Dr A Willis 15 Some Thoughts on Place Premises: Actual or Virtual Atmosphere Convenience Accessibility Service Variety Distribution/Logistics Flow from A to B Point of Transaction Intermediaries : Dr A Willis 16 Intermediaries Play an important role in increasing efficiency and reducing costs. There are several different types of intermediary who come together to create different kinds of distribution channels between manufacturer and consumer. Each intermediary adds a margin to the price of the goods handled. Different functions are performed by the different intermediaries. Not all intermediaries necessarily take legal title or physical possession of the goods. Intermediaries : Dr A Willis 17 Intermediaries Retailers Wholesalers Distributors and Dealers Franchisees Agents and Brokers In Retailing of Services In Wholesaling of everything! Why Intermediaries? : Dr A Willis 18 Why Intermediaries? Transactional Value Risk Marketing Administration Logistical Value Assortment Storage Sorting Bulk Breaking Transportation Facilitating Value Financing Training Information After sales So why…? : Dr A Willis 19 So why…? Factors Affecting Channel Strategy : Dr A Willis 20 Factors Affecting Channel Strategy Internal Analysis Objectives Resources Capabilities Product External Analysis Market characteristics Consumer behaviour Changing environment Market Coverage : Dr A Willis 21 Market Coverage INTENSIVE Penetration Mass Market Low Involvement Low Price SELECTIVE Penetr./Skimming Differentiated Av. Involvement Average Price EXCLUSIVE Skimming Niche High Involvement High Price Channel Management : Dr A Willis 22 Channel Management Selecting Channel Members (years in business, other lines carried, growth and profit record, cooperativeness and reputation) Motivating Channel Members (positive and negative motivators) Evaluating Channel Members (Kotler and Armstrong, 2001) Retail Strategy : Dr A Willis 23 Retail Strategy Location-Location-Location!!! Product/Service Range Retail Competitive Positioning Store Image and Atmosphere Merchandising Strategy Technology Retailer’s Own Brands Competition : Dr A Willis 24 Superdrug Lloyds Pharmacy Safeway Debenhams Holland and Barrett Lunch Stop! Competition What about web sites and services? : Dr A Willis 25 What about web sites and services? Navigation, Design, Information, Security, Feedback, Range Interaction Points, Actual Premises Slide 26: Dr A Willis 26 Value added services : Dr A Willis 27 Value added services Example - Selling a CD : Dr A Willis 28 Example - Selling a CD Place is simply where your fans buy your CD. You can also call it distribution. There are many ways to distribute your CD. Retail Probably the most difficult is retail (selling your CD in music stores). This is difficult for independent musicians or bands because you usually need to have a relationship with a distributor. Online Isn't the Web wonderful? You can easily and cheaply set up a web page with your information, sample audio files, show dates, and how to order your CD. In Person Whenever you perform, you should sell your CDs. You can mention that you are selling CDs and where to buy them while you are performing. It is easier if you have a friend to help you. This person can collect the money, hand out the CDs, etc. so you don't have to worry about it during a show. In Home There is nothing wrong with telephone orders! Exercise: : Dr A Willis 29 Exercise: Consider a can of tuna. How many different dealers has it passed through? Now consider double-glazing. How many distributors are involved here? What accounts for the difference in price between a 24p can of tuna and a £6,000 double-glazing installation? Slide 30: Dr A Willis 30 The can of tuna will have gone from fisherman to cannery, to exporter, to importer, to food broker, to wholesaler (perhaps also an agent), to retailer and to consumer. The double-glazing will have gone from producer to consumer direct. You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
marketing manish.singh076 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 3 Category: Entertainment License: All Rights Reserved Like it (0) Dislike it (0) Added: January 31, 2012 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript ETITBMarketing : Dr A Willis 1 ETITBMarketing Week 3 Place / Distribution Slide 2: Dr A Willis 2 Objectives Explain the role of marketing channels and the functions these channels perform. Identify the major channel alternatives open to a company. Explain how businesses select, motivate and evaluate channel members. Isolate the key issues managers face when setting up marketing channel systems. Explain how marketing channels are changing and the implications of these trends to marketers. Place. : Dr A Willis 3 Place. Place is also known as channel, distribution, or intermediary. It is the mechanism through which goods and/or services are moved from the manufacturer/ service provider to the user or consumer. Physical Distribution : Dr A Willis 4 Physical Distribution The tasks involved in planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit (Kotler and Armstrong, 2001) Defining marketing channels : Dr A Willis 5 Defining marketing channels A marketing channel is a structure that links a group of individuals or organisations through which products/services are made available to the consumer or industrial user. The structure of channels can vary depending on the type of market, the needs of the end consumer, and the type of product. Slide 6: Dr A Willis 6 WHERE? HOW? ACCESS NOT JUST BUT THE WHOLE EXPERIENCE!!! OUR AIM!!! : Dr A Willis 7 OUR AIM!!! OUR PRODUCT/SERVICE TO BECOME AVAILABLE TO OUR TARGET CUSTOMERS IN THE TIME, QUANTITY, QUALITY, COST, FORM, AND LOCATION THAT THEY WANT Easier said than done! Slide 8: Dr A Willis 8 Slide 9: Dr A Willis 9 Structure of Marketing Channels : Dr A Willis 10 Structure of Marketing Channels Producer Consumer Consumer Consumer Retailer Retailer Whole. Consumer Goods Marketing Channels Producer Producer Provider Consumer Provider Agent Consumer Structure of Marketing Channels : Dr A Willis 11 Structure of Marketing Channels Producer User User User Distr. Distr. Agent Industrial Goods Marketing Channels Producer Producer Provider Agent User Distribution channels for services : Dr A Willis 12 Distribution channels for services Characteristics of Services : Dr A Willis 13 Characteristics of Services Intangibility - Lack of tangible assets which can be seen, touched, or smelled prior to purchase. Perishability - Inability of a service to be inventoried or stored. Inseparability - Simultaneous production and consumption of a service. Variability - Unwanted or random levels of service quality customers receive when they patronize a service firm. Inseparability : Dr A Willis 14 Inseparability The customer becomes part of the service The employee becomes part of the service The customer and the employee interact with the service delivery system Some Thoughts on Place : Dr A Willis 15 Some Thoughts on Place Premises: Actual or Virtual Atmosphere Convenience Accessibility Service Variety Distribution/Logistics Flow from A to B Point of Transaction Intermediaries : Dr A Willis 16 Intermediaries Play an important role in increasing efficiency and reducing costs. There are several different types of intermediary who come together to create different kinds of distribution channels between manufacturer and consumer. Each intermediary adds a margin to the price of the goods handled. Different functions are performed by the different intermediaries. Not all intermediaries necessarily take legal title or physical possession of the goods. Intermediaries : Dr A Willis 17 Intermediaries Retailers Wholesalers Distributors and Dealers Franchisees Agents and Brokers In Retailing of Services In Wholesaling of everything! Why Intermediaries? : Dr A Willis 18 Why Intermediaries? Transactional Value Risk Marketing Administration Logistical Value Assortment Storage Sorting Bulk Breaking Transportation Facilitating Value Financing Training Information After sales So why…? : Dr A Willis 19 So why…? Factors Affecting Channel Strategy : Dr A Willis 20 Factors Affecting Channel Strategy Internal Analysis Objectives Resources Capabilities Product External Analysis Market characteristics Consumer behaviour Changing environment Market Coverage : Dr A Willis 21 Market Coverage INTENSIVE Penetration Mass Market Low Involvement Low Price SELECTIVE Penetr./Skimming Differentiated Av. Involvement Average Price EXCLUSIVE Skimming Niche High Involvement High Price Channel Management : Dr A Willis 22 Channel Management Selecting Channel Members (years in business, other lines carried, growth and profit record, cooperativeness and reputation) Motivating Channel Members (positive and negative motivators) Evaluating Channel Members (Kotler and Armstrong, 2001) Retail Strategy : Dr A Willis 23 Retail Strategy Location-Location-Location!!! Product/Service Range Retail Competitive Positioning Store Image and Atmosphere Merchandising Strategy Technology Retailer’s Own Brands Competition : Dr A Willis 24 Superdrug Lloyds Pharmacy Safeway Debenhams Holland and Barrett Lunch Stop! Competition What about web sites and services? : Dr A Willis 25 What about web sites and services? Navigation, Design, Information, Security, Feedback, Range Interaction Points, Actual Premises Slide 26: Dr A Willis 26 Value added services : Dr A Willis 27 Value added services Example - Selling a CD : Dr A Willis 28 Example - Selling a CD Place is simply where your fans buy your CD. You can also call it distribution. There are many ways to distribute your CD. Retail Probably the most difficult is retail (selling your CD in music stores). This is difficult for independent musicians or bands because you usually need to have a relationship with a distributor. Online Isn't the Web wonderful? You can easily and cheaply set up a web page with your information, sample audio files, show dates, and how to order your CD. In Person Whenever you perform, you should sell your CDs. You can mention that you are selling CDs and where to buy them while you are performing. It is easier if you have a friend to help you. This person can collect the money, hand out the CDs, etc. so you don't have to worry about it during a show. In Home There is nothing wrong with telephone orders! Exercise: : Dr A Willis 29 Exercise: Consider a can of tuna. How many different dealers has it passed through? Now consider double-glazing. How many distributors are involved here? What accounts for the difference in price between a 24p can of tuna and a £6,000 double-glazing installation? Slide 30: Dr A Willis 30 The can of tuna will have gone from fisherman to cannery, to exporter, to importer, to food broker, to wholesaler (perhaps also an agent), to retailer and to consumer. The double-glazing will have gone from producer to consumer direct.