Do Now Exercise
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Transcript of Do Now Exercise
Do Now Exercise
Marketing I
Mr. GallucciLesson 43
Obj. Introduce distribution planning and “control vs. cost” – Case Study Assessment
Distribution Planning
Obj. Introduce distribution planning and “control vs. cost” – Case Study Assessment
•Distribution Planning•Physical movement of product
•Transfer of ownership from producer to consumer
•Decisions: Multiple Channels? Control vs. Cost, Distribution Intensity, and e-commerce.
Multiple Channels
Satisfying both industrial and consumer markets. (industrial customer: An entity that buys a product with the intent to use it for operating a business)
Using multiple distribution channels to maximize availability of product (and profit)Obj. Introduce distribution planning and
“control vs. cost” – Case Study Assessment
Cost vs. Control
Control: The amount of control a business keeps over the distribution of it’s products
Cost: How much it will cost to distribute the product… effects profitability
Control up, Cost up… vice versa.
Obj. Introduce distribution planning and “control vs. cost” – Case Study Assessment
Cost vs. Control Sales Force
Internal (direct) sales force Company has control over sales force. Associates on payroll, benefits, expenses.
Agent (external) sales force Company loses control over sales force Cost significantly less than hiring sales force
Cost of sale consistent to sales generated
Obj. Introduce distribution planning and “control vs. cost” – Case Study Assessment
Cost vs. Control
On who’s terms? Manufacturer must determine who to do business with
Larger retail stores (Walmart, Home Depot) are dictating terms of distribution to manufacturers
Could drive up price of distribution Could drive manufacturer away from “giants”
Obj. Introduce distribution planning and “control vs. cost” – Case Study Assessment
Activity
Obj. Introduce distribution planning and “control vs. cost” – Case Study Assessment