...CONTENTS 1. MEANING-PHYSICAL DISTRIBUTION 2. A SYSTEM APPROACH (COMPONENTS) 3. COMPONENTS :- TRANSPORTATION i. MEANING ii. FUNCTIONS iii. MODES – MEANING,FEATURES,ADVANTAGES & DISADVANTAGES * ROAD * RAIL * WATER * AIR PHYSICAL DISTRIBUTION MEANING: Physical distribution is the set of activities concerned with efficient movement of finished goods from the end of the production operation to the consumer. Physical distribution takes place within numerous wholesaling and retailing distribution channels, and includes such important decision areas as customer service, inventory control, materials handling, protective packaging, order procession, transportation, warehouse site selection, and warehousing. Physical distribution is part of a larger process called "distribution," which includes wholesale and retail marketing, as well the physical movement of products. Physical distribution activities have recently received increasing attention from business managers, including small business owners. This is due in large part to the fact that these functions often represent almost half of the total marketing costs of a product. In fact, research studies indicate that physical distribution costs nationally amount to approximately 20 percent of the country's total gross national product (GNP). These findings have led many small businesses to expand their cost-cutting efforts beyond their historical focus on production...
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...CHAPTER 12 GLOBAL MARKETING CHANNELS AND PHYSICAL DISTRIBUTION SUMMARY A channel of distribution is the network of agencies and institutions that links producers with users. Physical distribution is the movement of goods through channels. Business –to-consumer marketing uses consumer channels; business-to-business marketing employs industrial channels to deliver products to manufacturers or other types of organizations. Peer-to-peer marketing via the Internet is another channel. Distributors and agents are key intermediaries in both channel types. Channel decisions are difficult to manage globally because of the variation in channel structures from country to country. Marketing channels can create place utility, time utility, form utility, and information utility for buyers. The characteristics of customers, products, middlemen, and environment all affect channel design and strategy. Consumer channels may be relatively direct, utilizing direct mail or door-to-door selling, as well as manufacturer-owned stores. A combination of manufacturers' sales force, agents-brokers, and wholesalers may also be used. Global retailing is a growing trend as successful retailers expand around the world in support of growth objectives. Retail operations takes many different forms, including department stores, specialty retailers, supermarkets, convenience stores, discount stores, warehouse clubs, hypermarkets, supercenters, category killers, and outlet malls. Selection, price...
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...and its ownership closer to the final buyer. Channel conflict: Disagreement among marketing channel members. Vertical marketing system :A distribution channel structure in which producer wholsers , and retailers act as a unified system one channel members owns the others ,has contracts with them or has so much power that they all cooperate Future vertical marketing system divided in to two .They are 1.conventional marketing system 2.vertical marketing system Vertical marketing system: A vertical marketing system comprises of the producer, wholesaler and retailer acting as a unified system. One channel member, the channel captain owns the members and has so much power that they all cooperate. It arose as a result of strong channel member’s attempts to control channel behaviour. There are three types of VMS: CORPORATE, ADMINISTERED AND CONTRACTUAL. CORPORATE VMS: A corporate VMS combines successive stages of production and distribution under single ownership. For example Sears obtains over 50% of the goods it sells from companies that it partly or wholly owns. ADMINISTERED VMS: An administered VMS coordinates successive stages of production and distribution through the size and power of one of the members. The most advanced supply-distributor arrangement for administered VMSs involve distribution programming, which can be defined as building a planed, professionally managed, vertical marketing system that meets the needs of both the manufacture...
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...Q1. Value proposition Walmart’s value proposition is based on offering Everyday Low Price. This is the core of Walmart’s Business Model, and the rest of the key features of Walmart’s Business Model are aligned to keep the everyday low price. This proposition implies that the customers do not need to wait for sales to have the best deal possible. Besides, not only the sells convenience is associated by providing the wide range of products and services to choose from, but also with one-stop is possible to make all the shopping needed, from groceries to pharmacy. Walmart’ customers save time and money Distribution channel To deliver its value proposition Walmart communicates with and reaches its customer segments with its distribution channels which are owned and direct, and brings higher margin. Walmart also is corresponding with its customers mainly through mass media and other ways which have a low cost, such as internet. Customer relationships Walmart establishes a customer relationship is based on self-service and automated and towards co-creation of some products once it is possible. Walmart tends to reach to the mass market toward mass customisation. Walmart’s customers can be divided into three groups: “brand aspirations”, people with low incomes who are obsessed with brand; “price-sensitive effluents” wealthier shoppers who love deals; and finally “value-price shoppers” who like low prices and cannot afford much more Strong buyer-supplier relationship Walmart...
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...2/20/12 Business Concept By: S. Arbaaz Mehdi BUSN 495 Norbert Golembiewski Business: Unitus Entertainment Type of Business: Event Management Company Who is the customer? Our customers are anyone and everyone who is a fan of music, who would love to listen and see the performances of live music artists. In addition; they are also individuals, private firms, and corporate companies that need service in dynamic media presentations and unforgettable events. We offer a unique opportunity to bring various artists of different music genres who perform together leaving the audience with a lasting impression. What is the value proposition? When you work with Unitus Entertainment, you work with quality people who have the experience and imagination to bring energy, life, and entertainment. Our approach is straightforward to leave the audience with a lasting impression. We create a grand event by great ideas that drive results, cost effective budget, business transparencies, legal proceedings, and outstanding client services. What is product/service being offered? Music Entertainment Events: * Fair and festivals * Concerts * Parties (club, beach, hotel) * Corporate Entertainment On Site/Others: * Venue Selection and Procurement * Theme Design * Lighting and Sound * Photography and Video Production * Booking Artist * Promotion and Marketing * Site/Venue Inspection & Selection * Full Service Travel Arrangements (Air, Ground...
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...THE ROLE OF PHYSICAL DISTRIBUTION A Graduate Seminar Paper Submitted to the Department of Marketing Faculty of business administration University of Nigeria Enugu Campus In partial fulfillment of the requirements for the degree Master of Business Administration (MBA) Graduate seminar (MKT 803) By Onah Godfrey C. PG/MBA/12/62555 AUGUST 2014 APPROVAL PAGE This review by: GODFREY. C. ONAH Titled: Ensuring efficient marketing of petroleum product; the role of physical distribution Has been approved for meeting the research requirement for the award of Degree of master of Business Administration (MBA) in Marketing Prof. Ogwo E. Ogwo Date Approved SupervisorProf. Ugwuonah | Date Approved Head, Department of Marketing | INTRODUCTION The marketing of petroleum products in Nigeria has been inefficient and has faced a lot of problems over the years. Therefore this paper examines the role of physical distribution and how it can help to ensure greater efficiency in the marketing of petroleum products. We shall be reviewing the problems of inefficiency in the marketing of petroleum products in Nigeria, the essence or thrust of physical distribution in marketing, and how physical distribution can help ensure...
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...adventures will also be included. There will be an inner separation that is well-padded on all sides that will be ideal for laptop toting. There will also be an extractable water-proof cover that will pull out from bottom and cover the entire back to protect against unexpected rainfall. All of these features and benefits will be wear the Thermos name that, through its 106 years in business (thermos.com, 2010), represents reliability and sustainability in itself. Augmented: The packs will come in a variety of colours and sizes including a line of children’s packs that will have various kid-popular cartoon images on the front. There will be a 30-day satisfaction guarantee as well as a 1-year limited warranty – the limits being loss and physical damage to name a few. There will also be a recycling guarantee that offers a discount towards purchase of a new pack if customers return old pack to Thermos for recycling. Features and Benefits Summary Segment Needs Product Feature Benefit Product to carry homemade lunch to work/leisure activities Backpack with built-in cooler-like lunch box. Green Urbanite can...
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...SAMPLE growth process toolkit Distribution Channel Optimization Accelerating Growth through Unbiased and Ongoing Partner Evaluation, Selection, and Management SAMPLE INTRODUCTION Growth through Distribution Channel Optimization A recent study determined that high-performance businesses (i.e., the 10 percent that outpace competitors regardless of economic conditions) “excel in the development of meaningful customer insights and practical ways to put those insights into action.” 1 They understand what their customers want, and they know how to deliver solutions that customers will buy. An unwritten, but nonetheless significant, extension of this idea is that they not only know what customers will buy, but where and how they want to buy. In short, no company is successful for its insights alone. Success ultimately depends upon the effectiveness and reach of its go-to-market strategy. Distribution channel optimization is therefore a critical ingredient to sustaining growth through a rigorous customer focus. ∗ D D F F At their most basic level, distribution partners enable suppliers to deliver goods or services to end users, and distributors’ reach significantly influences the extent to which suppliers can engage with customers. On a more meaningful level, distribution partners provide customer service in areas where suppliers cannot or do not (e.g., financing, insurance, training, maintenance, repairs). Taken together, the two deliver an enhanced customer experience...
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...Marketing channels towards customers, including wholesales and retailers, * Supply chain: make-and-sell view, which suggest productive inputs as starting point * Demand chain: Sense-and-respond view But sometimes it takes a step-by-step, linear view of purchase-production-consumption activities Value Delivery network: A network composed of company, suppliers, distributors, and ultimately customers who partner with each other to improve the performance of the entire system in delivering customer value The Nature and Importance of Marketing Channels Marketing Channel (Distribution channel): A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user * Affect every other marketing decision * Use imaginative distribution systems * Involve long-term commitment to other firms How Channel Members Add Value * Give up some control over how and to whom to sell products * But they create greater efficiency in making goods available to target markets by better contacts, experience, specialization and scale of operation * Intermediaries reduce the amount of work by both producers and consumers * Transform assortments of products made by producers into assortments wanted by consumers * Match supply and demand Information | Gather and distribute information about consumers, producers and other actors and forces in...
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...Marketing Channel Management – Important Issues Marketing Management Revision Article Series Most manufacturers of products use marketing intermediaries to sell their products to the consumers. The marketing intermediaries make up a marketing channel (distribution channel or a trade channel). The marketing channel overcomes the time, place, and possession gaps that separate gods and services from those who need or want them. Marketing Intermediaries and Their Functions Most manufacturers of products use marketing intermediaries to sell their products to the consumers. The marketing intermediaries make up a marketing channel (distribution channel or a trade channel). Stern and El-Ansary define: “Marketing channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption.” The marketing channel overcomes the time, place, and possession gaps that separate gods and services from those who need or want them. Some of the functions that channel members perform are: Information Promotion Negotiation Ordering Financing Risk taking Physical possession Payment Title Channel Levels A zero level channel is direct marketing between producer and consumer. In one level channel a retailer is between producer and consumer. Two level channels have wholesaler and retailer. Still longer channels also exist in some industries. Channel design decisions involve analyzing customers’...
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...Operations Management, Marketing Management Submitted to: Prof. Christopher Malanum Submitted by: Acuna, Charzel R. Alcoran, Rachelle Anne K. Aquino, Patricia Mae Ann E. AUGUST 2015 Part 1: Channels of Distributions Channels of Distribution Few producers sell their goods directly to final users. Instead, most use intermediaries to bring their products to market. According to Philip Kotler, distribution channel is a set of interdependent organizations that help make a product or service available for use or consumptions by consumer or business user. Here are some definitions from different websites: Goods and services often pass to consumers through multiple channels. While increasing the number of ways in which a consumer can find a good has the potential to increase sales, it also creates a complex system that can make distribution management difficult. In addition, the longer the distribution channel the less profit a product manufacturer might get from the sale. (Distribution Channel Definition| Investopedia http://www.investopedia.com/terms/d/distribution-channel.asp#ixzz3jhyoJ8Pg) The path through which goods and services travel from the vendor to the consumer or payments for those products travel from the consumer to the vendor. A distribution channel can be as short as a direct transaction from the vendor to the consumer, or may include several interconnected intermediaries along the way such as wholesalers, distributers, agents and retailers. Each intermediary receives the...
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...Channels of Distribution In the uncertain fluctuating market of today, it is essential for a company to hold on and face those uncertainties in order to survive. Consumers can be an aid for a company's survival, thereby it is essential for consumers to get the goods of a company whenever and however they need them. Here is where distribution channels come in and give hand. "Channels of distribution are the different paths that goods passed through in moving from the producer to the consumer", (Meyer et al, 1988). With the help of distribution channels, companies are able to overcome the time, place and possession gaps that separate goods and services from the consumers. As said by Aaker (1984), access to an effective and efficient marketing channel is often a key success factor. However, in this competitive era, an understanding of the alternative distribution channels and the trends in their relative importance can be of strategic importance for any company. For example, the growth and importance can be of a self service retail gasoline stations and the comparison growth in the importance of convenience stores such as the 7/11 chain in gasoline retailing has strategic significance to petroleum companies and distributors as well as to firms in food retailing (example adapted from Aaker, 1984). Additionally, because of competition, gaining distribution in some industries can be extremely difficult and costly. Nowadays, even large, established firms have trouble obtaining...
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...Changing Channels: The Impact of the Internet on Distribution Strategy Leyland Pitt, Pierre Berthon, and Jean-Paul Berthon I n simple markets of old, producers of goods or services dealt directly with the consumers of those offerings. In some modern businessto-business markets, suppliers also interact on a face-to-face basis with their customers. In most contemporary markets, however, mass production and consumption have lured intermediaries into the junction between buyer and seller. These intermediaries have either taken title to the goods or services during the flow from producer to customer, or in some way facilitated this by specializing in one or more of the functions that must be performed for such movement to occur. These flows of title and functions, and the intermediaries w h o have facilitated them, have generally come to be known as distribution channels. For most marketing decision makers, dealing with the channel for a product or service ranks as one of the key marketing quandaries. In many cases, despite what the textbooks suggest, there is frequently no real decision as to "who" should constitute the channel; rather, the question is how best to deal with the incumbent channel. Marketing channel decisions are critical also because they intimately affect all other marketing and overall strategic decisions, Distribution channels generally involve relatively long-term commitments, but if managed effectively over time, they create a key external resource. Small...
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...Blockbuster Case Study How will new competition from Redbox and digital content providers force Blockbuster to alter its strategy? At their physical retail locations, Blockbuster sells movie theatre type food items to enjoy while watching your movie rental. Blockbuster has recently weighed in with kiosks in locations to compete with Redbox. One of the advantages is promoting these new kiosks is promoting the availability of new releases as compared to Redbox or Netflix in addition to the available choices. I believe Blockbuster’s strategy should be one that capitalizes upon availability and choices. I also believe Blockbuster’s strategy should encompass or revising their distribution channels. Retail stores pose higher overhead and therefore cut into the pricing strategy. As technology advances, moviegoers are now looking for access to movies and entertainment that is instant and convenient. Blockbuster has answered this demand with their Total Access online program. What value-added components could Blockbuster offer to the movie studios that might entice them to more closely align with Blockbuster as a distribution channel? The value-added components would be to collaborate with channels such as cable or satellite providers such as Dish Network. The opportunities this present are channels such as pay per view that are offered by satellite and cable companies. The Total Access can then be acclimated online on the cable and satellite companies, which...
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...How will new competition from Redbox and digital content providers force Blockbuster to alter its strategy? At their physical retail locations, Blockbuster sells movie theatre type food items to enjoy while watching your movie rental. Blockbuster has recently weighed in with kiosks in locations to compete with Redbox. One of the advantages is promoting these new kiosks is promoting the availability of new releases as compared to Redbox or Netflix in addition to the available choices. I believe Blockbuster’s strategy should be one that capitalizes upon availability and choices. I also believe Blockbuster’s strategy should encompass or revising their distribution channels. Retail stores pose higher overhead and therefore cut into the pricing strategy. As technology advances, moviegoers are now looking for access to movies and entertainment that is instant and convenient. Blockbuster has answered this demand with their Total Access online program. What value-added components could Blockbuster offer to the movie studios that might entice them to more closely align with Blockbuster as a distribution channel? The value-added components would be to collaborate with channels such as cable or satellite providers such as Dish Network. The opportunities this present are channels such as pay per view that are offered by satellite and cable companies. The Total Access can then be acclimated online on the cable and satellite companies, which provides virtual guarantee for movie...
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