place utility

the availability of a product or service in a location that is convenient to a potential customer

time utility
the availability of a product or service when desired by a customer
form utility
the availability of the product processed, prepared, in proper condition, and/or ready to use
information utility
the availability of answers to questions and general communication about useful product
features and benefits
key policy decisions that management must make
choosing a channel strategy
What is the importance of Coca-Cola's global marketing strategy?
create place utility to be "within an arm's reach of desire"
What is the starting point in selecting most effective channel arrangement?
clear focus of the company's marketing effort on a target market and an assessment of the
way(s) in which distribution can contribute to the firm's overall value proposition
distribution channels
systems that link manufacturers to customers
B2C marketing
consumer channels are designed to put products in the hands of people for their own use
B2B marketing
involves industrial channels that deliver products to manufacturers or other organizations that
then use them as inputs in the product process or in day-to-day operations
distributor
wholesale intermediary that typically carries product lines or brands on a selective basis
agent
intermediary who negotiates exchange transactions between two or more parties but does not
take title to the goods being purchased or sold
perishable goods are what type of channel?
form utility (must be sold in satisfactory condition)
manufacturer
can reach customers with its own sales; sell directly to wholesalers without using a sales
force and wholesalers can supply customers
peer-to-peer marketing
individuals consumers market products to other individuals
direct involvement
the company establishes its own sales force or operates its own retail stores
indirect involvement
utilize independent agents, distributors, and retailers
cherry picking
practice of accepting orders only from manufacturers with established demand for certain
products and brands
global retailing
any retailing activity that crosses national boundaries
department stores
literally have several departments under one roof, each representing a distinct merchandise
line and staffed with a limited number of sales people
specialty retailers
offer less variety; more narrowly focused and offer a relatively narrow merchandise mix
aimed at a particular target market
supermarkets
departmentalized, single-story retail establishments that offer a variety of food and nonfood
items, mostly on self-service basis
convenience stores
merchandise mix is limited to high-turnover convenience and impulse produce
discount retailers
the most general characteristics that they have in common is the emphasis on low prices
full-line discounters
offer a wide range of merchandise in a limited-service format
warehouse club
segment of discount retailing; shoppers "join" the club to take advantage of low prices on a
limited range of products, many of which are displayed in their shipping cartons in a "no-
frills" atmosphere
dollar stores
sell a select assortment of products at a single low price
hypermarkets
hybrid retailing format combining the discounter, supermarket, and warehouse club
approaches under a single roof
(ex: SuperTarget/SuperWalmart)
supercenters
offer a wide range of aggressively priced grocery items plus general merchandise in a space
that occupies about half the size of a hypermarket
(ex: Walmart)
superstores (category-killers)
specialize in selling vast assortment of a particular category in high volumes at low prices
(ex: IKEA)
shopping malls
grouping stores in one place
outlet stores/malls
retail operations that allow companies with well-known consumer brands to dispose of excess
inventory, out-of-state merchandise, or factory seconds
organic growth
occurs when a company uses its own resources to open a store on a greenfield site or to
acquire one or more existing retail facilities from another company
franchising
appropriate entry strategy when barriers to entry are low yet the market is culturally distance
in terms of consumer behavior or retailing structures
chain acquisition
market-entry strategy that entails purchasing a company with multiple retail locations in a
foreign country
supply chain
includes all the firms that perform support activities such as generating raw materials or
fabricating components
order processing
the order is actually entered into the company's information system
distribution center
efficiently receive goods from suppliers and then fill orders for individual stores or customers
mode
transportation decisions; implies a choice
rail
extremely cost-effective means for moving large quantities of merchandise long distances
inland water transportation
extremely low-cost mode generally used to move agricultural commodities, petroleum,
fertilizers, etc.
ocean transportation
deep-water ports around the world can receive a variety of types of oceangoing vessels; most
effective way to ship large quantities of merchandise
containerization
practice of landing oceangoing freight into steel boxes; flexibility in the product that can be
shipped via container
intermodal transportation
involves a combination of land and water shipping from producer to consumer
logistics management
integration of activities necessary to ensure the efficient flow of raw materials and finished
goods from producers to customers
channel of distribution
network of agencies and institutions that links producers with users
physical distribution
movement of goods through transportation
What are the six transportation modes?
air, truck, water, rail, pipeline, Internet