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?2000 Prentice Hall Objectives Retailing Wholesaling Market Logistics Types of NonStore Retailing Direct Selling Direct Marketing Buying Services NonStore Retailing Accounts for More Than 12% of All Consumer Purchases, and is trending up. Automatic Vending Low Price Low Status Low Margin Mid Price Mid Status Mid Margin High Price High Status High Margin Wheel of Retailing Why are Wholesalers Used? Wholesaler Functions Management Services Advice Selling and Promoting Market Information Buying and Assortment Building Risk Bearing Bulk Breaking Transporting Financing Warehousing Goals of the Logistics System Provide a Targeted Level of Customer Service at the Least Cost. Maximize Profits, Not Sales. Higher Distribution Costs/ Higher Customer Service Levels Lower Distribution Costs/ Lower Customer Service Levels Inventory When to order How much to order Just-in-time Costs Minimize Costs of Attaining Logistics Objectives Warehousing Storage Distribution Order Processing Submitted Processed Shipped Logistics Functions Transportation Water, Truck, Rail, Pipeline Air Logistics Systems Rail Nation’s largest carrier, cost-effective for shipping bulk products, piggyback Truck Flexible in routing time schedules, efficient for short-hauls of high value goods Water Low cost for shipping bulky, low-value goods, slowest form Pipeline Ship petroleum, natural gas, and chemicals from sources to markets Air High cost, ideal when speed is needed or to ship high-value, low-bulk items Transportation Modes 1. Speed. 2. Dependability. 3. Capability. 4. Availability. Checklist for Choosing Transportation Modes Advertising Personal Selling Any Paid Form of Nonpersonal Presentation by an Identified Sponsor. Sales Promotion Short-term Incentives to Encourage Trial or Purchase. Public Relations Direct Marketing Direct Communications With Individuals to Obtain an Immediate Response. Protect and/or Promote Company’s Image/products. Personal Presentatio
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