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Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson
Slide 2
PROBLEM:
1. Industrial sales to auto assemblers OK 2. Retail sales of replacement tires doing poorly
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson
Slide 3
COMPETITION:
1. Bridgestone / Firestone from Japan 2. Michelin from France / Germany
3. Both companies will sell at low low price to increase North American market share
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson
Slide 4
Slide 5
Chpt 11 is about the distribution channels how do you get the product, physically, from where it is made, to where people are going to buy it Chpt 12 is about storing, transporting etc.
Slide 6
Marketing / Distribution Channels create - Time - Place - Possession/ownership utility Delivered at the right time - time utility Delivered to the right place - place utility With appropriate legal requirements possession / ownership utility
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created Page 287 and Copyright by Prof. Tim Richardson
Slide 7
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson
Slide 8
Slide 9
Slide 10
Slide 11
Discrepancies
Page 369
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson
Slide 12
Discrepancies
Page 369
Discrepancy of Quantity the mfg. Makes much more than individual consumers want to buy each time middlemen, wholesalers and retailers break this amount down into smaller amounts for individual consumers to buy
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson
Slide 13
Discrepancies
Page 369
Discrepancy of Quantity the difference between the quantity of products it is economical for an individual producer to make and the quantity normally wanted by individual consumers or users...
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson
Slide 14
Discrepancies
Page 369
Discrepancy of Assortment the difference between ALL the product lines a mfg. Makes, and what the wholesaler wants to sell, and what the consumer will buy middlemen, break this amount down into different selections which the wholesalers want
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson
Slide 15
Discrepancies
middlemen, break this amount down into different selections which the wholesalers want EG. KRAFT makes many many different types of salad dressing A no-frills store just wants to sell 7 types cause its customers dont buy the fancy kinds
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson
Slide 16
Page 3 7 0
Accumulation - combining products from several different producers. make it more convenient for companies to buy and handle
When farmers collect food, and sell them to buyers who gather large amounts for shipping to processors
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson
Slide 17
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson
Slide 18
Page 3 7 0
Breaking Bulk - take all the product and physically move it into small containers so it can be shipped to wholesalers. divide larger quantities into smaller quantities
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson
Slide 19
Sorting
Page 3 7 1
Separating products into grades and qualities desired by different target markets. Eg. Food products, small onions, large onions,
Slide 20
Sorting
Page 3 7 1
Taking heterogeneus commodities and sorting them into homogenous categories Eg. All apples into red apples and green apples
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson
Slide 21
Sorting The process that helps producers, who produce different amounts, and different types, organize their products into categories/assortments to make it easier for the consumer to buy. WTGR
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson
Slide 22
Assorting
Page 3 7 1
putting together a variety of products to give a target market what it wants ie. In this video store, mostly Asian films ie. In this record store, mostly hip hop ie. In this jewelry store, mostly chains
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson
Slide 23
Assorting
Page 3 7 1
Some stores cannot take the full range of a companys product line - they do not have the shelf space or floor space - so they carefully select the brands of several mfgs to sell.
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson
Slide 24
PAGE 373
A person, or company, that helps direct the activities of a whole channel, and tries to avoid, or solve conflicts
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson
Slide 25
PAGE 373
Slide 26
PAGE 375
Sometimes Middlemen have a clear picture of what the customer wants, and who the producers are, so they arrange for producers to be in contact with the retailers, so more product can flow in the channel. The Middlemen makes more money by making nore commission on stuff sold.
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson
Slide 27
The whole channel focusses on the same target market at the end of the channel sometimes a large firm will buy up the smaller companies in the channel to have more control over the distribution (Corporate Channel Systems - page 376)
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson
Slide 28
Reverse Channels
The paths goods follow from consumer to manufacturer or to marketing intermediaries.
Common in the recycling industries.
Eg.
- Empty glass bottles - used batteries
- used tires
- used printer cartridges - Canon
Page 384
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson
Slide 29
Reverse Channels
- used cartridges - Canon
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson
Slide 30
Reverse Channels
Also used for product recalls or for broken products that need to be fixed under Warranty - especially cars, tires and some expensive electronic consumer items.
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson