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Toyota Innova Chevrolet Tavera Mahindra Xylo White

Tata Indigo Maruti Swift Dezire

Honda City Toyota Corolla Toyota Camry Honda Accord

Tempo Traveler Deluxe Coach

Muv/Suv

Economy Vehicles

Luxury Vehicles

Buses/Coaches

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

Marketing / Distribution Channels create- Time- Place- Possession/ownership utility

Delivered at the right time - time utilityDelivered to the right place - place utilityWith appropriate legal requirements -

possession / ownership utility

Page 287

Product Classes - Place

The different Product Classes have different PLACE situations

Place decisions can be aided by knowing about the product classes

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

Place and PLCPLACE must be considered in terms of the

Product Life CycleIn 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

Place and PLCPLACE must be considered in terms of the

Product Life CycleChanging 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 decisions

Page 366

Discrepancies

Discrepancy of QuantityDiscrepancy of Assortment

Page 369

Discrepancies

Discrepancy of Quantitythe mfg. Makes much more than individual

consumers want to buy each timemiddlemen, wholesalers and retailers break this

amount down into smaller amounts for individual consumers to buy

Page 369

Discrepancies

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...

Page 369

Discrepancies

Discrepancy of Assortmentthe 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

Page 369

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 don’t buy the fancy kinds

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

Page 3 7 0

The Accumulating Process

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…”

Page 3 7 0

Separating products into grades and qualities desired by different target markets.

Eg. Food products, small onions, large onions,

or white eggs, brown eggs

or …

Sorting Page 3 7 1

Taking heterogeneus commodities and sorting them into homogenous categories

Eg. All apples into red apples and green apples

Sorting Page 3 7 1

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

Sorting

“… 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

Assorting Page 3 7 1

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

Assorting Page 3 7 1

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 don’t have such a position.

PAGE 373

Can be,,,

• A strong wholesaler

• a market oriented producer

• a large retailer

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.

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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)

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

Reverse Channels

Page 384

- used cartridges - Canon

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.

Reverse Channels

Important to maintain consumer satisfaction and confidence.