IB Business and Management Marketing 6

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Information about IB Business and Management Marketing 6
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Published on March 19, 2014

Author: keitepai

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PowerPoint Presentation: IB Business and Management .com IB Business and Management T he IB Diploma Business and Management course delivered IN STYLE , ONLINE . © PowerPoint Presentation: z place 4.6 PowerPoint Presentation: z place ‘place’ decisions are concerned with how products should pass from manufacturer to the final customer . Several different channels of distribution are open for firms to use Channel of distribution: the chain of intermediaries (3 rd parties) a product passes through from producer to final consumer PowerPoint Presentation: z Channels of distribution Coke ® doesn’t sell ( can’t sell ) to the general public – directly to the end user. Coke ® ’s customers are supermarkets & other retailers That’s on average , per person, In 1996 ( ↑ sales year-on-year) 250 cans or small bottles of Coke ® The chain of distribution/channels of distribution (manufacturers → wholesalers → retailers) may use intermediaries (third parties who each add a profit margin) Distribution channels = levels PowerPoint Presentation: z Choice of distribution channel Consumers need easy access to a firm’s products to allow them to see & try before they buy & to make purchasing easy. Manufacturers need outlets for their products that give as wide a market coverage as possible, but with the desired image of the product appropriately promoted Retailers – firms who sell the final product to customers will demand a mark-up to cover costs & make a profit (so cold affect pricing strategy) PowerPoint Presentation: z Direct selling to consumer manufacturer consumer PowerPoint Presentation: Single intermediary channel z manufacturer consumer retailer PowerPoint Presentation: Two intermediaries channel manufacturer consumer wholesaler z retailer PowerPoint Presentation: z Zero-level channel No intermediaries -direct mail -e commerce Services too: customers book own flights, hotel rooms producer consumer PowerPoint Presentation: z one-level channel One intermediary used to sell products to consumers - Estate agents producer distributors consumer producer agents consumer producer retailers consumer PowerPoint Presentation: z two-level channel Two intermediaries used to get products to consumers producer wholesalers consumer retailers PowerPoint Presentation: z Distribution strategy The distribution channel needs to support all components of the marketing mix? Should the product be sold direct to consumers? Should the product be sold through retailers? How many intermediaries? Where should the product be made available? Should electronic methods of distribution be used? How much will it cost to keep the stock of products on store shelves & in channel warehouses? How much control does the business want to have over its marketing mix? PowerPoint Presentation: z Choosing the distribution channel Factors influencing choice: Industrial products tend to be sold more directly with fewer intermediaries than consumer goods Geographical dispersion of the target market – if the target market is large & widely dispersed then intermediaries are more likely to be used The level of service expected by consumers; e.g. after sales servicing of a car limits internet selling Technical complexity of the product; e.g. business computers are sold directly as they require a great deal of knowledge by sales staff Unit value of the product – it may be worth employing sales staff to sell directly to customers if the unit cost is high (e.g. luxury yachts) Number of potential customers: Few; e.g. Boeing would use direct sales Mass market; e.g. nike would need intermediaries question: 4.6.1, p. 578 question: 4.6.2, p. 579 question: 4.6.3, p. 581 question: 4.6.4, p. 582 PowerPoint Presentation: z Supply chain management logistics HL PowerPoint Presentation: z Managing & controlling the sequence of activities from the production of a product to it being delivered to the end consumer Outsourcing distribution & transportation more cost effective Supply chains must be efficient & cost effective to be used question: 4.6.5, p. 584 Supply chain management logistics HL

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