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1、当代商业概论 Fundamentals of Business,Lecture 5: Distribution and Business Plan Writing,What to cover today：,Distribution and market coverage Channels of distribution Intermediaries Physical distribution and transportation Developing a business plan Exercises,1. Distribution and market coverage,Distributi
2、on 分销 is: - the channels or pathways by which a firms products are made accessible to its customers Market coverage 市场覆盖 is: - the degree of product distribution among outlets to cover the market,Market coverage can be classified as:,Intensive distribution: across most or all possible outlets to ens
3、ure easy access by consumers, products that do not take up much space and do not require expertise, e.g. cigarettes, chewing gum, soft drink Selective distribution: through selected outlets, and some outlets are intentionally avoided, to create prestige or guarantee specialized service e.g. Victoria
4、s Secrets: via upscale department stores only Exclusive distribution: through only one or few outlets, an extreme form of S distribution, e.g. luxury watches, high-quality jewelry: one particular specialty store The higher the price, the more selective the market coverage.,Marketing research and mar
5、ket coverage,Marketing research can help a firm determine the optimal type of coverage by identifying where consumers desire to purchase products or services.,a DVD producer: grocery stores, retail stores, video stores, supermarket; amount of money customers are willing to pay at each type of store
6、Ralph Lauren: company-owned stores in trendy neighborhoods and resorts, “store within a store” in department stores such as Marcys,2. Channels of distribution,Channels of distribution 分销渠道 is: - the specific method a firm uses to sell and deliver its products or services to customers Direct Channel:
7、 involves no intermediaries One-level Channel: involves retailers Two-level Channel: involves wholesalers and retailers,2.1 Comparison of three distribution channels,“The direct model eliminates the need to support an extensive network of wholesale and retail dealers, thereby avoiding dealer markups
8、 加价; avoids the higher inventory costs associated with the wholesale/retail channel and the competition for retail shelf space. In addition, the direct model allows the Company to maintain, monitor, and update a customer database that can be used to shape the future product offerings. this direct ap
9、proach allows the Company to rapidly and efficiently deliver relevant technology to its customers.” - Dell annual report Question: what are the advantages of the direct channel as foregrounded here?,Case study: Direct channel of Dell,Direct channel,the producer deals directly with customers e.g. Amw
10、ay, insurance companies, DHC, 凡客诚品, Lands End, Dell Possible promotion mix: rely more on personal selling, PR, direct mail, and the Internet (increasing popularity) Advantage: full control over the marketing mix (esp. price less coverage/access,One-level channel,one marketing intermediary (the retai
11、ler) is involved between the producer and the customer e.g. Time Warner: its film company movie theaters, its record company music shops Possible promotion mix: rely more on media ads and sales promotion,Two-level channel,two marketing intermediaries (the wholesaler & the retailer) are involved betw
12、een the producer and the customer e.g. Anheuser-Buschs Budweiser beer: the producer 900 beer wholesalers countless retail outlets such as grocery stores, convenience stores, supermarkets, vending machines Possible promotion mix: rely more on media ads and sales promotion,2.2 Factors affecting the ch
13、oice of distribution channels,Market coverage Product characteristics: standardized products (apples, napkins) are more likely to involve intermediaries than complex products (computers, cars, customerized furniture), because the latter require more expertise, specialized service, and greater commun
14、ication between the buyer and the seller Ease of transportation: the more transportable a product is, the more likely it is to involve intermediaries, e.g. built-in swimming pools vs. aboveground pools Use of multiple channels,3. Intermediaries,- institutions or individuals that participate in the p
15、rocess of moving products from the producer to the customer Merchants: become owners of products and then resell them; can be further classified as: Wholesalers 批发商: buy products from the producer in large quantities and resell them to retailers Retailers 零售商: sell products to end consumers Agents 代
16、理商 permanent (agents) vs. deal-by-deal (brokers),3.1 Wholesalers,Full-service wholesalers Limited-function wholesalers Rack jobbers 货架批发商 Cash and carry wholesalers 付款提货批发商 Drop shippers 订货批发商,3.2 Retailers,Store retailing Department stores Discount stores Supermarkets Hypermarkets General stores Sp
17、ecialty stores,Nonstore retailing Virtual stores Vending machines Mail-order houses Direct selling Carts and kiosks MLM,3.3 Agents & brokers,Commonly used by small businesses with unknown brands that may not receive orders from wholesalers or retail outlets, or by foreign companies to explore the ma
18、rket and “test the water” e.g. an entrepreneur creates a new paint product may use an agent to convince a representative (also called a buyer) of Home Depot, who will decide whether Home Depot should carry this products in its retail stores. An agent can be critical to the success of such a firm.,Fo
19、r all your home improvement needs: appliances, bathroom decorating ideas, kitchen remodeling, patio furniture, power tools, bbq grills, carpeting. back,3.4 Value added by intermediaries,Time utility 时间便利 Place utility 地点便利 Ownership utility 所有权便利 Form utility 商品整理便利 Information utility 信息便利 Service
20、utility 服务便利,4. Physical distribution and transportation,Modes of transportation: Rail: mainly for wholesalers Truck: mainly for retailers Pipeline: for liquid & gas Water: for bulk cargos, esp. international trade Air: for light, costly goods,Case study: Streamline the logistic process in Toyota,Th
21、e selection of proper transportation is merely the first step in developing a proper system for delivering products efficiently. Toyota used to let its finished cars sit in its Kentucky factory, until it had a large batch to send by rail to various dealerships around the country. Now it immediately
22、sends its finished vehicles by rail to a sorting dock, where they are sorted and then delivered to various cities nearby. Consequently the cars no longer sit at the factory, and the distribution time has been reduced by 2 day. In reality, no formulas are available to determine the ideal transportati
23、on system. Most firms compare the estimated time and expenses of each possible method, and then select the most time-/cost-efficient one.,5. Developing a business plan,- a detailed description of the proposed business, including a description of the product or service, the types of customers it woul
24、d target, the competition, and the facilities needed for production - a checklist for entrepreneurs to ensure that them have considered all the key functions of the business - a formal document to provide to potential investors,Structure of a typical business plan,Description and ownership of propos
25、ed business Assessment of the business environment (marketing research) Economic environment Industry environment Global environment Management plan Organizational structure,Production process Human resources Marketing plan Target market Product characteristics Pricing Distribution Promotion Financi
26、al plan Funds needed Feasibility Summary Appendices,Online resources for creating a business,Yahoo!s Small Business site http:/ American Express http:/ Small Business Administration http:/www.sbaonline.sba.gov Quicken Small Business http:/ resources for business/marketing plan writing,Business Plan
27、Guide http:/ Developing a business plan http:/ 卡姿兰品牌营销策划方案 http:/ 克丽缇娜品牌重庆上市推广方案 http:/ 莱坤男性化妆品营销策划书 http:/ 名人掌上电脑智能王网络营销计划书 http:/ Translation (1) 市场覆盖 (2) 分销渠道 (3) 物流 (4) 代理商 (5) 货架批发商 (6) 订货批发商 (7) 营业额 (8) 利润 (9) 运营成本 (10) 货仓 (11) 售货亭 (12) 邮购公司 (13) 直接销售 (14) 多层直销 2. Cloze test and sentence rearr
28、angement (p.38),3. Supplementary reading Avon is Calling in Every Way It Can Global Integrated Logistics Developing the Business Plan College Health Club: Developing a Business Plan,Group presentation: Marketing plan 营销计划书,Task 1: oral presentation: MS PowerPoint, 12 mins (10 mins briefing + 2 mins Q&A) 6 groups, English/Chinese Task 2: written assignment: MS Word, no less than 2000 words, English,