Professional Documents
Culture Documents
Distributing
Products
BUSINESS
The combination of
distribution channels
by which a seller gets
its product to end
users
BUSINESS
BUSINESS
BUSINESS
What Is a Distribution
Channel?
Network of
interdependent
companies through
which a product passes
from producer to end
user
BUSINESS
Channels of Distribution
BUSINESS
Distribution of Consumer
Products
Channel 1: Direct Distribution of Consumer
Products
Direct channel occurs when the product travels from
producer to consumer without intermediaries
BUSINESS
BUSINESS
Distribution Strategies
Intensive distribution is a
strategy by which a product
is distributed through as
many channels as possible
Exclusive distribution is a
strategy by which a
manufacturer grants
exclusive rights to distribute
or sell a product to a limited
number of wholesalers or
retailers
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BUSINESS
Distribution Strategies
Selective distribution is a strategy by
which a company uses only wholesalers
and retailers who will give special
attention to specific products
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BUSINESS
What Is Physical
Distribution?
Activities needed to
move a product
efficiently from
manufacturer to
consumer
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Warehousing
BUSINESS
Types of Warehouses
Public and Private Warehouses
Private warehouses are owned by and
provide storage for a single company
Public warehouses are independently
owned and operated
Storage Warehouses and Distribution
Centers
Storage warehouses provide storage for
extended periods
Distribution centers provide short-term
storage of products whose demand is both
constant and high
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BUSINESS
Warehousing Costs
Inventory control tracks
inventory on hand and ensures
that an adequate supply is in
stock at all times
Materials handling involves the
transportation, arrangement and
orderly retrieval of inventoried
goods
Unitization is a strategy that
calls for standardizing the
weight and form of materials
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BUSINESS
Transportation Operations
Major transportation modes:
Trucks
Railroads
Planes
Water carriers
Pipelines
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BUSINESS
Transportation Operations
Factors in choosing transportation
methods:
Cost
Nature of the product
Distance
Speed
Customer wants and needs
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BUSINESS
THATS ALL!
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