Business 100

1
Business 100

• Introduction to Business
• Dr. Kathy Broneck

2
Review

• Marketing a Product
• Branding
• Product Development
• Pricing a Product

3
Preview

• Retailing
• Distribution
• Consumer Shopping Habits
• Supply Chain Management

4
Channel of Distribution

• Marketing Intermediaries
• Wholesaler
• Retailer
• Agents/Brokers
• Role of Intermediaries
• Create Efficiency
• Value vs. Cost

5
Utility for Consumers

• Form
• Time
• Place
• Information
• Possession
• Service

6
Wholesale Intermediaries

• Merchant Wholesalers
• Full-Service
• Limited-Function
• Rack Jobbers
• Cash-and-Carry
• Drop Shippers
• Business to Business (B2B)

7
They All Started in 1962
Source Business 2.0, June 2003, p. 38.
8
Identify a Retailer in Your Area

• Supermarket
• Convenience Store
• Discount Store
• Department Store
• Category Killer

• Specialty Store
• Factory Outlet
• Superstores
• Catalog Showroom

9
Is It Becoming aWal-Mart World?
There are 3,400 stores in the U.S.
Source Wal-Mart Annual Report 2003
10
The Wheel of Retailing
2. Retail Outlet
3. Retail Outlet

• Higher Prices
• Higher Status

• Adds Service
• Raises Prices
• Better Location

Passage of Time
4. New Outlet Enters
1. Retail Outlet Starts

• Low Price
• Limited Service

• Low Price
• Limited Service
• Out-of-way Location

11
Retail Store Distribution

• Intensive

• Selective

• Exclusive

12
Non-Store Distribution

• E-tailing
• Telemarketing
• Vending Machines, Kiosks, Carts
• Direct Selling
• Multilevel Marketing
• Direct Marketing

13
Why People Dont Shop Online

• It isnt secure
• It will jeopardize my privacy
• Usually must pay shipping charges
• Not enough selection
• Cant touch/try things first

• No satisfaction guarantee
• Returns are a hassle
• Wont arrive on time
• Hard to find things online
• Enjoy getting out of house to shop

Source blink, www.earthlink.net/blink
14
Necessary Website Features
Source Dreaming of a Green Christmas,
Newsweek, November 11, 2002, p. E24
15
Channel Cooperation

• Corporate Distribution
• Contractual Distribution
• Administered Distribution
• Supply Chain Management

16
The Supply Chain
17
Logistics

• Physical Distribution
• Inbound
• Materials
• Outbound
• Reverse
• Information

18
Transportation Storage Modes

• Railroad
• Motor Vehicles
• Water
• Pipeline

• Air
• Intermodal
• Warehousing
• Storage
• Distribution