当代商业概论fundamentalsofusiness.pptVIP

当代商业概论 Fundamentals of Business Lecture 5: Distribution and Business Plan Writing What to cover today： Distribution and market coverage Channels of distribution Intermediaries Physical distribution and transportation Developing a business plan Exercises 1. Distribution and market coverage Distribution 分销 is: -- the channels or pathways by which a firm’s products are made accessible to its customers Market coverage 市场覆盖 is: -- the degree of product distribution among outlets to cover the market Market coverage can be classified as: Intensive distribution: across most or all possible outlets to ensure easy access by consumers, products that do not take up much space and do not require expertise, e.g. cigarettes, chewing gum, soft drink Selective distribution: through selected outlets, and some outlets are intentionally avoided, to create prestige or guarantee specialized service e.g. Victoria’s Secrets: via upscale department stores only Exclusive distribution: through only one or few outlets, an extreme form of S distribution, e.g. luxury watches, high-quality jewelry: one particular specialty store The higher the price, the more selective the market coverage. Marketing research and market coverage Marketing research can help a firm determine the optimal type of coverage by identifying where consumers desire to purchase products or services. 2. Channels of distribution Channels of distribution 分销渠道 is: -- the specific method a firm uses to sell and deliver its products or services to customers Direct Channel: involves no intermediaries One-level Channel: involves retailers Two-level Channel: involves wholesalers and retailers 2.1 Comparison of three distribution channels “The direct model eliminates the need to support an extensive network of wholesale and retail dealers, thereby avoiding dealer markups 加价; avoids the higher inventory costs associated with the wholesale/retail channel and the competition for retail shelf space. … In addition, th