Do Now Exercise

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Do Now Exercise
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Marketing I

• Mr. Gallucci
• Lesson 43

Obj. Introduce distribution planning and control vs. cost Case Study Assessment
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Distribution Planning

• Distribution Planning
• Physical movement of product
• Transfer of ownership from producer to consumer
• Decisions Multiple Channels? Control vs. Cost,
  Distribution Intensity, and e-commerce.

Obj. Introduce distribution planning and control vs. cost Case Study Assessment
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Multiple Channels

• Satisfying both industrial and consumer markets.
  (industrial customer An entity that buys a
  product with the intent to use it for operating a
  business)
• Using multiple distribution channels to maximize
  availability of product (and profit)

• Obj. Introduce distribution planning and
  control vs. cost Case Study Assessment

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Cost vs. Control

• Control The amount of control a business keeps
  over the distribution of its products
• Cost How much it will cost to distribute the
  product effects profitability
• Control up, Cost up vice versa.

• Obj. Introduce distribution planning and
  control vs. cost Case Study Assessment

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Cost vs. Control

• Sales Force
• Internal (direct) sales force
• Company has control over sales force.
• Associates on payroll, benefits, expenses.
• Agent (external) sales force
• Company loses control over sales force
• Cost significantly less than hiring sales force
• Cost of sale consistent to sales generated

• Obj. Introduce distribution planning and
  control vs. cost Case Study Assessment

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Cost vs. Control

• On whos terms?
• Manufacturer must determine who to do business
  with
• Larger retail stores (Walmart, Home Depot) are
  dictating terms of distribution to manufacturers
• Could drive up price of distribution
• Could drive manufacturer away from giants

• Obj. Introduce distribution planning and
  control vs. cost Case Study Assessment

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Activity

• Obj. Introduce distribution planning and
  control vs. cost Case Study Assessment