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Chapter Sixteen

PRIDE HUGHES KAPOOR INTRODUCTION TO BUSINESS ELEVENTH EDITION. Chapter Sixteen. Wholesaling, Retailing, and Physical Distribution. 16 | 1. Learning Objectives. Identify the various channels of distribution that are used for consumer and industrial products

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Chapter Sixteen

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  1. PRIDE HUGHES KAPOOR INTRODUCTION TO BUSINESS ELEVENTH EDITION Chapter Sixteen Wholesaling, Retailing, and Physical Distribution 16 | 1

  2. Learning Objectives • Identify the various channels of distribution that are used for consumer and industrial products • Explain the concept of market coverage • Understand how supply-chain management facilitates partnering among channel members • Describe what a vertical marketing system is and identify the types of vertical marketing systems • Discuss the need for wholesalers and describe the services they provide to retailers and manufacturers 16| 2

  3. Learning Objectives (cont’d) • Identify and describe the major types of wholesalers • Distinguish among the major types of retailers • Identify the categories of shopping centers and the factors that determine how shopping centers are classified • Explain the five most important physical distribution activities 16 | 3

  4. Channels of Distribution • Define • Channel of Distribution (Marketing Channel) • Middleman (Marketing Intermediary) • Merchant Middleman • Functional Middleman • Retailer • Wholesaler Middleman 16 | 4

  5. Channels for Consumer Products • Be prepared to discuss the Distribution Channels for Consumer Products • Producer to Consumer (Direct Channel) • Producer to Retailer to Consumer • Producer to Wholesaler to Retailer to Consumer • Producer to Agent to Wholesaler to Retailer to Consumer • When might a manufacturer use multiple channels? • What are appropriate products for each marketing channel? 16 | 5

  6. Channels for Business Products • Be prepared to discuss the Distribution Channels for Business Products • Producer to Business User • Producer to Agent Middleman to Business User 16 | 6

  7. Level of Market Coverage • Know the three levels ofIntensity of Market Coverage • Intensive Distribution • Selective Distribution • Exclusive Distribution • Be able to give an example of a product that would be best suited to each level of intensity 16 | 7

  8. Partnering Through Supply- Chain Management • Define Supply-Chain Management • What is Category Management? • How has Technologyenhanced the implementation of supply-chain management? 16 | 8

  9. Vertical Marketing Systems • What is Vertical Channel Integration? • Be prepared to discuss Vertical Marketing System (VMS) in its various forms • Administered • Contractual • Corporate 16 | 9

  10. Marketing Intermediaries: Wholesalers • Discuss Justifications for Marketing Intermediaries • How does an intermediary improve efficiency? • What services do Wholesalersprovide to retailers? • What services do Wholesalersprovide to manufacturers? 16 | 10

  11. Types of Wholesalers • Define the different types of wholesalers • Merchant Wholesalers • Full-Service Wholesalers • General Merchandise Wholesaler • Limited-Line Wholesaler • Specialty-Line Wholesaler • Limited-Service Wholesalers • Commission Merchant • Agent • Brokers • Manufacturer’s Sales Branch • Manufacturer’s Sales Office 16 | 11

  12. Marketing Intermediaries: Retailers • Define Retailers • Why are retailers important? • Know the different Classes of In-Store Retailers 16 | 12

  13. Kinds of Nonstore Retailing • Define • Nonstore Retailing • Direct Selling • Direct Marketing • Catalog Marketing • Direct-Response Marketing • Telemarketing • Television Home Shopping • Online Retailing • Automatic Vending 16 | 13

  14. Planned Shopping Centers • What is a Planned Shopping Center? • Be familiar with the different types of planned shopping centers • Lifestyle Shopping Center • Neighborhood Shopping Center • Community Shopping Center • Regional Shopping Center 16 | 14

  15. Physical Distribution • Define Physical Distribution • Define and be able to discuss • Inventory Management • Holding Costs • Stock-Out Costs • Order Processing • Warehousing • What are the activities that occur in warehouses? • What are the types of warehouses? • Materials Handling 16 | 15

  16. Transportation • Define • Transportation • Carrier • Common Carriers • Contract Carriers • Private Carriers • Freight Forwarders 16 | 16

  17. Modes of Transportation • Know the different modes of transportation • Railroads • Trucks • Airplanes • Waterways • Pipelines • What are the advantages and disadvantages of each? • Think of an example of a product that would be best suited to each type of transportation 16 | 17

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