Business and Society test#4

Business and Society test#4 - Business and Society test # 4...

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Business and Society test # 4 CHAPTER 13: DISTRIBUTING PRODUCTS Distribution: Direct Value Producer consumers Advantages of direct channels: o Lower price to customer o Producer has full control o Producer obtains first-hand feedback o Online ordering Disadvantages of direct channels: o Producer plays several roles o Higher promotional expenses o Producer needs more employees o Producer may need to sell on credit Distribution: One-Level channel retailers Nike Brand Tennis Shoes Foot locker, Sears, JC Penney. Distribution: One Level channel Wholesalers Producer Wholesaler A, B, C Business Customers Distribution: Two- level Channel, Two intermediaries participate. Producer Wholesaler Retailer consumer /retailer consumer Optimal Channel of Distribution : Dependent upon… Ease of transporting Degree of standardization Ability to fulfill Internet orders
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Intensive Distribution: Put products into as many retail outlets as possible Convenience goods utilize this kind of distribution Selective Distribution: Use on a preferred group of retailers in an area Helps assures producers of quality sales and service. Exclusive Distribution: Use of only one or a few retail outlets in a given geographic area Retailer has exclusive rights to sell product More likely to carry more inventory and give better service Can create or maintain the prestige of the product Transportation Methods Truck low to high costs fast speed high dependability medium flexibility Air highest cost fastest speed low dependability low flexibility Train Medium cost slow speed medium dependability high flexibility Water Lowest cost Slowest speed lowest dependability highest flexibility Pipeline low cost medium speed highest dependability lowest flexibility Characteristics of Retailers: Number of outlets Quality of service Products offered Store versus non-store How Wholesalers serve manufacturers: Warehousing
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Sales expertise Delivery to retailers
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Business and Society test#4 - Business and Society test # 4...

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