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Do Now Exercise

Do Now Exercise. Marketing I. Mr. Gallucci Lesson 43. Distribution Planning. 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.

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Do Now Exercise

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  1. Do Now Exercise

  2. Marketing I Mr. Gallucci Lesson 43

  3. Distribution Planning • Distribution Planning • Physical movement of product • Transfer of ownership from producer to consumer • Decisions: Multiple Channels? Control vs. Cost, Distribution Intensity, and e-commerce.

  4. 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

  5. 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

  6. 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

  7. 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

  8. Activity Obj. Introduce distribution planning and “control vs. cost” – Case Study Assessment

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