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Marketing Fundamentals

Marketing Fundamentals

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Published by Omar Shawky

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Published by: Omar Shawky on Sep 12, 2011
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Marketing 101: The Fundamentals

Slide 100 of 153

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Placing decisions…

Placing your product is the third of the four P’s.
It encompasses channels of distribution that serve
as a transporter for getting your product to your
customers.
Decisions you will need to make in placing your
product include market coverage, channel member
selection, logistics, and location.

Marketing 101: The Fundamentals

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Market coverage…

You must first determine which markets you are
going to reach and with what objectives.
Be sure to include items such as the desired level
of service and functions to be performed by
channel members.
Constraints to developing your objectives may
come from several sources.

–Customers, products, intermediaries, company policies,
competitors, and the environment.

Marketing 101: The Fundamentals

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Channel member selection…

Marketing channels direct the flow of products
from producers to consumers.
They may go directly from producer to buyer.

Producer

Consumer

Wholesaler

Producer

Consumer

Retailer

Or the may have several steps between production
to consumers.

Marketing 101: The Fundamentals

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Part of the process…

What part of the distribution process does your
business handle, if any?

–Warehousing
–Order processing
–Inventory management
–Packaging
–Materials handling
–Receiving
–Transportation and shipping

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Retailers in the distribution channel…

As you move down the marketing channel from
manufacturing, to wholesaling and so on, it may
become unclear what your distribution channel
will look like.
Often, retailers believe that they do not have a
distribution channel.

The fact is a retailer’s location is their distribution

channel.

Marketing 101: The Fundamentals

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Number of channel members…

You must decide how many intermediaries will be in the
marketing channel.
Several middlemen will be needed for intensive
distribution - stocking your product in as many outlets as
possible.
Limited dealers will be granted the rights to distribute your
product with exclusive distribution.
Selective distribution stands in the middle. It requires
more than one intermediary, but fewer than the intensive
distribution.

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Supply chain management…

An important function of the marketing channel is
the joint effort of all members to create a supply
chain.
Supply chain management refers to the long-term
partnerships among channel members to reduce
inefficiencies, costs, and redundancies in the
market channel.
If managed correctly, a competitive advantage can
be established.

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Logistics of your channel…

When planning your distribution channel you
should be able to answer the following questions.

–What will the ordering process look like?
–Where will inventory be located?
–How much inventory should be kept on hand?
–How should goods be shipped?

Marketing 101: The Fundamentals

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Shipping options…

There are several ways to handle shipping.
FOB Factory Pricing: The costs of transporting the
product from seller to buyer are borne by the buyer.
Freight Absorption Pricing: Paying some of the
transportation costs in order to bring the price in line with
competitors.
Uniform Delivered Pricing: A standard price charged
regardless of location.
Zone Pricing: Charging different prices for different
regions of geography.

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Location of your business…

An important decision that you need to make is
where will your business be located.
Make sure the location you select fulfills the needs
of your business; location needs, space needs,
accessibility needs, etc.
Also check to see what traffic counts the facility
experiences. (check with your state Department of
Transportation)
Choosing a Successful Location for Your Business

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The cost of your location…

What will it cost to lease or buy the needed
facility?
Make sure that you can afford the location that
you choose.
Also find out the term and duration of the lease of
the desired location.
For more information, go to: Finding and Renting
Space for Your Business

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Channel regulations…

There are a multitude of federal, state, and local
laws governing channel management.
Through such laws as the Sherman Antitrust Act
and the Federal Trade Commission Act, the
government is trying to make sure that free trade
and competition are protected.

Marketing 101: The Fundamentals

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