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Slide 1

Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson

Slide 2

PROBLEM:
1. Industrial sales to auto assemblers OK 2. Retail sales of replacement tires doing poorly
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson

Slide 3

COMPETITION:
1. Bridgestone / Firestone from Japan 2. Michelin from France / Germany
3. Both companies will sell at low low price to increase North American market share
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson

Slide 4

SOLUTION re: PLACE


1. Sell replacement tires where people buy them - SEARS
2. Sell higher quality tire through dealerships so dealers can still bring in high end customers 3. Convert some stores to no-frills quick-serve
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson

Slide 5

Chpt 11 is about the distribution channels how do you get the product, physically, from where it is made, to where people are going to buy it Chpt 12 is about storing, transporting etc.

Chpt 13 is about different types of retailing and wholesaling firms


Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson

Slide 6

Marketing / Distribution Channels create - Time - Place - Possession/ownership utility Delivered at the right time - time utility Delivered to the right place - place utility With appropriate legal requirements possession / ownership utility

Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created Page 287 and Copyright by Prof. Tim Richardson

Slide 7

Product Classes - Place


The different Product Classes have different PLACE situations Place decisions can be aided by knowing about the product classes

Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson

Slide 8

Product Classes - Place


Convenience Products - have to be in convenient places - small stores, vending machines Shopping Products - have to be where shoppers go, malls, superstores etc. Specialty Products - have to available where people want to buy them - ie. Movie
theatres have to be located where many people go, and where you can park easily
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson

Slide 9

Place and PLC


PLACE must be considered in terms of the Product Life Cycle In the beginning Growth Stage - it might be good to have your product sold in a certain location, but in the maturity or decline stage, you may have to change locations to make it better for customers who are no longer so strongly interested in buying
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson

Slide 10

Place and PLC


PLACE must be considered in terms of the Product Life Cycle Changing PLACEs, as you move through the PLC, is very hard to do because it is expensive and usually involves Real Estate Place decisions are usually harder to change than other marketing mix Page 366 decisions
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson

Slide 11

Discrepancies
Page 369

Discrepancy of Quantity Discrepancy of Assortment

Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson

Slide 12

Discrepancies
Page 369

Discrepancy of Quantity the mfg. Makes much more than individual consumers want to buy each time middlemen, wholesalers and retailers break this amount down into smaller amounts for individual consumers to buy
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson

Slide 13

Discrepancies
Page 369

Discrepancy of Quantity the difference between the quantity of products it is economical for an individual producer to make and the quantity normally wanted by individual consumers or users...

Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson

Slide 14

Discrepancies
Page 369

Discrepancy of Assortment the difference between ALL the product lines a mfg. Makes, and what the wholesaler wants to sell, and what the consumer will buy middlemen, break this amount down into different selections which the wholesalers want
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson

Slide 15

Discrepancies
middlemen, break this amount down into different selections which the wholesalers want EG. KRAFT makes many many different types of salad dressing A no-frills store just wants to sell 7 types cause its customers dont buy the fancy kinds
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson

Slide 16

Page 3 7 0

Accumulation - combining products from several different producers. make it more convenient for companies to buy and handle

When farmers collect food, and sell them to buyers who gather large amounts for shipping to processors
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson

Slide 17

The Accumulating Process

Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson

Slide 18

Page 3 7 0

Breaking Bulk - take all the product and physically move it into small containers so it can be shipped to wholesalers. divide larger quantities into smaller quantities

Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson

Slide 19

Sorting

Page 3 7 1

Separating products into grades and qualities desired by different target markets. Eg. Food products, small onions, large onions,

or white eggs, brown eggs


or
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson

Slide 20

Sorting

Page 3 7 1

Taking heterogeneus commodities and sorting them into homogenous categories Eg. All apples into red apples and green apples

Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson

Slide 21

Sorting The process that helps producers, who produce different amounts, and different types, organize their products into categories/assortments to make it easier for the consumer to buy. WTGR
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson

Slide 22

Assorting

Page 3 7 1

putting together a variety of products to give a target market what it wants ie. In this video store, mostly Asian films ie. In this record store, mostly hip hop ie. In this jewelry store, mostly chains
Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson

Slide 23

Assorting

Page 3 7 1

Some stores cannot take the full range of a companys product line - they do not have the shelf space or floor space - so they carefully select the brands of several mfgs to sell.

Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson

Slide 24

PAGE 373

A person, or company, that helps direct the activities of a whole channel, and tries to avoid, or solve conflicts

However, some older products dont have such a position.

Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson

Slide 25

PAGE 373

Can be,,, A strong wholesaler a market oriented producer a large retailer


Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson

Slide 26

Note: explanation on bottom of page 374 and top of page 375

PAGE 375

Sometimes Middlemen have a clear picture of what the customer wants, and who the producers are, so they arrange for producers to be in contact with the retailers, so more product can flow in the channel. The Middlemen makes more money by making nore commission on stuff sold.

Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson

Slide 27

The whole channel focusses on the same target market at the end of the channel sometimes a large firm will buy up the smaller companies in the channel to have more control over the distribution (Corporate Channel Systems - page 376)

Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson

Slide 28

Reverse Channels
The paths goods follow from consumer to manufacturer or to marketing intermediaries.
Common in the recycling industries.

Eg.
- Empty glass bottles - used batteries

- used tires
- used printer cartridges - Canon

Page 384

Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson

Slide 29

Reverse Channels
- used cartridges - Canon

Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson

Slide 30

Reverse Channels
Also used for product recalls or for broken products that need to be fixed under Warranty - especially cars, tires and some expensive electronic consumer items.

Important to maintain consumer satisfaction and confidence.

Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created and Copyright by Prof. Tim Richardson