《网络营销》课程教学课件（英文）Chapter 12 The Internet for Distribution

E-Marketing4/EJudyStrauss,AdelI.El-Ansary,and RaymondFrostChapter12:TheInternetforDistribution1000007001010100111101000010010111010010C2006PrenticeHalln

©2006 Prentice Hall 12-1 E-Marketing 4/E Judy Strauss, Adel I. El-Ansary, and Raymond Frost Chapter 12: The Internet for Distribution

Chapter 12 ObjectivesAfterreadingChapter12youwill be ableto.. Describe the three majorfunctions ofa distributionchannel.Explainhow the Internet is affecting distributionchannellength.Discusstrendsinsupplychainmanagementandpower relationships among channelplayers.Outlinethemajormodelsusedbyonlinechannelmembers.Highlight how companies can use distribution channelmetrics.70070701001111010000100101110100102006PrenticeHa

©2006 Prentice Hall 12-2 Chapter 12 Objectives • After reading Chapter 12 you will be able to: • Describe the three major functions of a distribution channel. • Explain how the Internet is affecting distribution channel length. • Discuss trends in supply chain management and power relationships among channel players. • Outline the major models used by online channel members. • Highlight how companies can use distribution channel metrics

The Dell Story.Dell is the numberone notebookand desktopPCmakerintheworldDellutilizesadirect-distributionmodeltosellabout$4omillionperdayonlineWholesalersandretailersareeliminatedThrough itsdirect channel,Delldirectlymonitors itscustomers'needs.Dellhandles10,000customercommunicationsperday.100700707010011101000010010111010010C2006PrenticeHal

©2006 Prentice Hall 12-3 • Dell is the number one notebook and desktop PC maker in the world. • Dell utilizes a direct-distribution model to sell about $40 million per day online. • Wholesalers and retailers are eliminated. • Through its direct channel, Dell directly monitors its customers’ needs. • Dell handles 10,000 customer communications per day. The Dell Story

The Dell Story, cont.DelloperatesinboththeB2BandB2CenvironmentsMaintains60.000 customWebstorefrontsformajorcorporate buyersAllowsonline customerstobuildtheirown systemsand uses the information to guide new productdevelopment.Dellhasa tightlycoordinated supplychainthatsells in 104 country marketsHaveyou(orhassomeoneyouknow)benefitedfromDell'smass customization strategy?07007.0101001111010000100101110100102006PrenticeHa

©2006 Prentice Hall 12-4 The Dell Story, cont. • Dell operates in both the B2B and B2C environments. • Maintains 60,000 custom Web storefronts for major corporate buyers. • Allows online customers to build their own systems and uses the information to guide new product development. • Dell has a tightly coordinated supply chain that sells in 104 country markets. • Have you (or has someone you know) benefited from Dell’s mass customization strategy?

Distribution Channel OverviewA distribution channelisagroupofinterdependentfirmsthattransferproductandinformationfromthe suppliertotheconsumer·Producers.Intermediaries·BuyersEachchannelmemberperformssomeofthemarketingfunctions10000001000007000700070C2006PrenticeHal

©2006 Prentice Hall 12-5 Distribution Channel Overview • A distribution channel is a group of interdependent firms that transfer product and information from the supplier to the consumer. • Producers • Intermediaries • Buyers • Each channel member performs some of the marketing functions

Types of intermediariesWholesalersbuyproductsfromthemanufacturerand resellthemtoretailersBrokersfacilitatetransactionsbetweenbuyersandsellersAgentsmayrepresenteitherthebuyerorsellerManufacturers'agentsrepresenttheseller·Purchasing agents represent the buyer.7001070100111001000010010111010010C2006PrenticeHal

©2006 Prentice Hall 12-6 • Wholesalers buy products from the manufacturer and resell them to retailers. • Brokers facilitate transactions between buyers and sellers. • Agents may represent either the buyer or seller. • Manufacturers’ agents represent the seller. • Purchasing agents represent the buyer. Types of intermediaries

Channel Length and FunctionsChannellengthreferstothenumberofintermediaries between the supplier and theconsumer.Direct-distributionchannelshavenointermediariesIndirectchannelshaveoneormoreintermediariesEliminating intermediaries canpotentiallyreduce costs107001:070100111101000010010111010010C2006PrenticeHal

©2006 Prentice Hall 12-7 Channel Length and Functions • Channel length refers to the number of intermediaries between the supplier and the consumer. • Direct-distribution channels have no intermediaries. • Indirect channels have one or more intermediaries. • Eliminating intermediaries can potentially reduce costs

Channel Length and Functions.Disintermediation is the process of eliminatingtraditionalintermediariesCompletedisintermediationhasnotoccurred.TheU.S.distribution system is the mostefficient inthe world.Using intermediariesallows companies to focusonwhat they do best.Manytraditionalintermediarieshavebeenreplacedwith Internetequivalents.·Online storefronts can lower costsof retail space andwarehouses100010001111010000100101110100102006PrenticeHa

©2006 Prentice Hall 12-8 • Disintermediation is the process of eliminating traditional intermediaries. • Complete disintermediation has not occurred. • The U.S. distribution system is the most efficient in the world. • Using intermediaries allows companies to focus on what they do best. • Many traditional intermediaries have been replaced with Internet equivalents. • Online storefronts can lower costs of retail space and warehouses. Channel Length and Functions

Functions of a Distribution ChannelChannelfunctionscanbecharacterizedasfollows:Transactional·Logistical·Facilitating1000007001010100111101000010010111010010C2006PrenticeHall000

©2006 Prentice Hall 12-9 Functions of a Distribution Channel • Channel functions can be characterized as follows: • Transactional • Logistical • Facilitating

Transactional FunctionsTransactionalFunctionsinclude.MakingcontactwithbuyersMarketingcommunicationstrategiesMatchingproductstobuyerneedsNegotiatingprices·Processingtransactions100000000110000000700700C2006PrenticeHall

©2006 Prentice Hall 12-10 • Transactional Functions include: • Making contact with buyers. • Marketing communication strategies. • Matching products to buyer needs. • Negotiating prices. • Processing transactions. Transactional Functions