* * Distribution Effect on Your Food Dollar In cents... Makeup difference in volume Target Roseville, MN May 1962 Discount retailer with strong sense of value Kmart Garden City, MI Bring
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1-1
McGraw-Hill/Irwin
Nickels McHugh McHugh
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Distributing Products Quickly and
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• Marketing Intermediaries
• Wholesaler
• Retailer
• Agents/Brokers
• Role of Intermediaries
• Create Efficiency
• Value vs Cost
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Distribution Effect on Your Food Dollar (In cents)
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Wal-Mart Rogers, Ark.
July 1962
Slash prices Makeup difference in volume
Target Roseville, MN
May 1962
Discount retailer with strong sense of value
Kmart Garden City, MI Bring discount store
concept to suburban
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U.S and International Wal-Mart Stores 2006
US Retail Units
Wal-Mart International
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Utilities Created by
Intermediaries
Place
Possession
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• Merchant Wholesalers
• Full-Service
• Limited-Function
• Rack Jobbers
• Cash-and-Carry
• Drop Shippers
• Agents and Brokers
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• Intensive
• Selective
• Exclusive
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Identify a Retailer
In Your Area
• Supermarket
• Convenience
Store
• Discount Store
• Department
Store
• Category Killer
• Specialty Store
• Factory Outlet
• Superstores
• Catalog Showroom
• Warehouse club
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• THE MALL OF AMERICA in Bloomington, Minnesota
• Large enough to hold Thirty-two 747’s
• Four Gap stores
• Aquarium
• Full-size amusement park
• More than 40 million visitors a year
combined)
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Passage
Of Time
2 Retail Outlet
1 Retail Outlet
Starts
3 Retail
Outlet
4 New Outlet
Enters
Adds Service
Raises Prices
Better Location
Location
Low Price
Limited Service
Out-of-way Location
Location
Higher
Prices
Higher
Status
Prices
Status
Low Price
Limited
Service
Service
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• Electronic retailing
• Telemarketing
• Vending Machines, Kiosks, Carts
• Direct Selling
• Multilevel Marketing
• Direct Marketing
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Top Internet Shopping Sites
Source: Investors Business Daily, November 23, 2005
By Millions of Visitors
in October 2005
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Top Internet Comparison-Shopping Sites
By Millions of Visitors
in October, 2005
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10 Ways to Increase
Sales on eBay
features.
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Why People Don’t
Shop Online
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Distribution
Distribution
Distribution
Management
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• Physical Distribution
• Inbound
• Materials handling
• Outbound
• Reverse
• Information
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Transportation &
Storage Modes
• Railroad
• Motor
Vehicles
• Water
• Pipeline
• Intermodal
• Warehousing