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Marketing II / Session 6

Place Marketing II/ Session 6

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Слайд 1Marketing II / Session 6

23.04.2015
Martin Samek
martin.samek@lbs.ac.at

Marketing II / Session 623.04.2015Martin Samekmartin.samek@lbs.ac.at

Слайд 2Place
Marketing II/ Session 6

Place Marketing II/ Session 6

Слайд 3Place - Distribution
Marketing II / Session 6
Sellers prefer to

produce large quantities
of a limited number of goods

Buyers prefer smaller quantities
of a wider variety of goods

Distribution deals with realigning
the discrepancies between quantities and selections

Breaking bulk: making goods available in smaller
batches






Place - Distribution Marketing II / Session 6Sellers prefer to produce large quantities  of a limited

Слайд 4Distribution Channels
Marketing II / Session 6






A network of inter-connected firms

that provide sellers a means of infusing the marketplace with

their goods, and buyers a means of purchasing those goods, as efficiently and profitably as possible.

Actors in the chain:
Manufacturing firms
Distributors or wholesalers
Retailers
Consumers

Distribution ChannelsMarketing II / Session 6	A network of inter-connected firms that provide sellers a means of infusing

Слайд 5Activities in Distribution Chains
Marketing II / Session 6






Customer oriented: ordering,

handling, shipping, etc.

Product-oriented: storage & display, etc.

Marketing-centric: promotion, etc.

Financial-oriented

Logistics

Activities in Distribution ChainsMarketing II / Session 6	Customer oriented: ordering, handling, shipping, etc.Product-oriented: storage & display, etc.Marketing-centric:

Слайд 6Transportation Logistics
Marketing II / Session 6






“time is money”










Transportation LogisticsMarketing II / Session 6	“time is money”

Слайд 7Manufacturer to Consumer
Marketing II / Session 6






Manufacturer to ConsumerMarketing II / Session 6

Слайд 8Manufacturer through Channel
Marketing II / Session 6






Manufacturer through ChannelMarketing II / Session 6

Слайд 9Forms of Distribution Channels
Marketing II / Session 6






Forms of Distribution ChannelsMarketing II / Session 6

Слайд 10Channels and Supply Chain
Marketing II / Session 6






Suppliers:

upstream actors
Supply

chain management

Channel members:

downstream actors
that help a company reach

consumers
Channels and Supply ChainMarketing II / Session 6	Suppliers: upstream actorsSupply chain managementChannel members: downstream actors that help

Слайд 11Intensity of Distribution (1)
Marketing II / Session 6






Intensive: widely distributed


Drugstores, supermarkets, discount stores,
convenience stores, etc.

Usually for simple,

inexpensive, easily
transported products like Snack food, shampoo,
newspapers, etc.

Pull strategy: promote directly to
end consumers to pull through channel


Intensity of Distribution (1)Marketing II / Session 6	Intensive: widely distributed Drugstores, supermarkets, discount stores, convenience stores, etc.

Слайд 12Intensity of Distribution (2)
Marketing II / Session 6






Selective: less widely

distributed
complex and/or expensive products that require

assistance - Cars, computers, appliances, etc.

Push strategy: promote to distribution partners
to push goods to consumer

Exclusive: extreme case of selectivity

Manufacturers have the most control
May become monopolistic



Intensity of Distribution (2)Marketing II / Session 6	Selective: less widely distributed  complex and/or expensive products that

Слайд 13Pull vs. Push strategy
Marketing II / Session 6






Incentives offered to

consumers
to pull products through the channel

Advertise to consumers
Distribute widely
Offer

price and/or quantity discounts
Offer inexpensive trials or free samples
Offer coupons and/or rebates
Offer financing
Offer loyalty programs/points

Incentives offered to distribution partners to push products
through the channel

Advertise to partners (and
consumers)
Distribute more selectively
Employ a sales force
Offer incentives to sales
force
Offer price and/or quantity
discounts
Offer financing
Offer allowances for
marketing activities

Manufacturer

Wholesaler

Retailer

Consumers

Pull

Push

Pull vs. Push strategyMarketing II / Session 6	Incentives offered to consumers to pull products through the channelAdvertise

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