當代商業概論FundamentalsofBusiness

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1、當代商業概論當代商業概論 Fundamentals of BusinessLecture 5:Distribution and Business Plan WritingWhat to cover today：1.Distribution and market coverage2.Channels of distribution 3.Intermediaries 4.Physical distribution and transportation 5.Developing a business plan Exercises Distribution 分銷分銷 is:-the channels

2、or pathways by which a firms products are made accessible to its customersMarket coverage 市場覆蓋市場覆蓋 is:-the degree of product distribution among outlets to cover the marketMarket coverage can be classified as:Intensive distribution:across most or all possible outlets to ensure easy access by consumer

3、s,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.Victorias Secrets:via upscale department sto

4、res onlyExclusive distribution:through only one or few outlets,an extreme form of S distribution,e.g.luxury watches,high-quality jewelry:one particular specialty storenThe higher the price,the more selective the market coverage.Marketing research and market coverage nMarketing research can help a fi

5、rm determine the optimal type of coverage by identifying where consumers desire to purchase products or services.na DVD producer:grocery stores,retail stores,video stores,supermarket;amount of money customers are willing to pay at each type of storenRalph Lauren:company-owned stores in trendy neighb

6、orhoods and resorts,“store within a store”in department stores such as Marcys Channels of distribution 分銷渠道分銷渠道 is:-the specific method a firm uses to sell and deliver its products or services to customersnDirect Channel:involves no intermediariesnOne-level Channel:involves retailersnTwo-level Chann

7、el: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 加價加價;avoids the higher inventory costs associated with the wholesale/retail channe

8、l 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 approach allows the Company to rapidly and efficiently deliver relevant technology to its

9、 customers.”-Dell annual report Question:what are the advantages of the direct channel as foregrounded here?Case study:Direct channel of DellDirect channel nthe producer deals directly with customersne.g.Amway,insurance companies,DHC,凡客誠品,Lands End,Dell nPossible promotion mix:rely more on personal

10、selling,PR,direct mail,and the Internet(increasing popularity)nAdvantage:full control over the marketing mix(esp.price&promotion);higher profit(no markup,the full difference between the cost and the price goes to the producer);firsthand feedbacknDisadvantage:more sales&delivery employees;more promot

11、ion expanses;less coverage/accessOne-level channel none marketing intermediary(the retailer)is involved between the producer and the customerne.g.Time Warner:its film company movie theaters,its record company music shopsnPossible promotion mix:rely more on media ads and sales promotionTwo-level chan

12、nelntwo marketing intermediaries(the wholesaler&the retailer)are involved between the producer and the customerne.g.Anheuser-Buschs Budweiser beer:the producer 900 beer wholesalers countless retail outlets such as grocery stores,convenience stores,supermarkets,vending machinesnPossible promotion mix

13、:rely more on media ads and sales promotion2.2 Factors affecting the choice of distribution channelsnMarket coveragenProduct characteristics:standardized products(apples,napkins)are more likely to involve intermediaries than complex products(computers,cars,customerized furniture),because the latter

14、require more expertise,specialized service,and greater communication between the buyer and the seller nEase of transportation:the more transportable a product is,the more likely it is to involve intermediaries,e.g.built-in swimming pools vs.aboveground poolsnUse of multiple channels -institutions or

15、 individuals that participate in the process of moving products from the producer to the customer pMerchants:become owners of products and then resell them;can be further classified as:nWholesalers 批發商批發商:buy products from the producer in large quantities and resell them to retailers nRetailers 零售商零

16、售商:sell products to end consumers pAgents 代理商代理商&brokers 經紀人經紀人:match sellers and buyers(wholesalers,retailers,or both)of products without becoming owners;permanent(agents)vs.deal-by-deal(brokers)3.1 Wholesalers o Full-service wholesalers o Limited-function wholesalers nRack jobbers 貨架批發商貨架批發商nCash

17、and carry wholesalers 付款提貨批付款提貨批發商發商nDrop shippers 訂貨批發商訂貨批發商3.2 Retailers o Store retailing nDepartment storesnDiscount storesnSupermarketsnHypermarkets nGeneral storesnSpecialty stores o Nonstore retailing nVirtual storesnVending machines nMail-order houses nDirect selling nCarts and kiosks nMLM3.

18、3 Agents&brokers o 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 market and“test the water”o e.g.an entrepreneur creates a new paint product may use an agent to convince a representative(als

19、o 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.For all your home improvement needs:appliances,bathroom decorating ideas,kitchen remodeling,patio furniture,power tools,bbq grills,

20、carpeting.back3.4 Value added by intermediaries o Time utility 時間便利o Place utility 地點便利o Ownership utility 所有權便利o Form utility 商品整理便利o Information utility 信息便利o Service utility 服務便利Modes of transportation:nRail:mainly for wholesalersnTruck:mainly for retailers nPipeline:for liquid&gas nWater:for bul

21、k cargos,esp.international tradenAir:for light,costly goodsCase study:Streamline the logistic process in Toyota The 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 f

22、actory,until it had a large batch to send by rail to various dealerships around the country.Now it immediately 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 distributi

23、on time has been reduced by 2 day.In reality,no formulas are available to determine the ideal transportation system.Most firms compare the estimated time and expenses of each possible method,and then select the most time-/cost-efficient one.-a detailed description of the proposed business,including

24、a description of the product or service,the types of customers it would 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 investorsStructure

25、 of a typical business plan 1.Description and ownership of proposed business 2.Assessment of the business environment(marketing research)Economic environment Industry environmentGlobal environment3.Management plan Organizational structureProduction process Human resources4.Marketing planTarget marke

26、tProduct characteristicsPricing Distribution Promotion5.Financial plan Funds needed Feasibility 6.Summary Appendices Online resources for creating a businessnYahoo!s Small Business site http:/nAmerican Express http:/ Business Administration http:/www.sbaonline.sba.govnQuicken Small Business http:/ r

27、esources for business/marketing plan writing nBusiness Plan Guide http:/ nDeveloping a business plan http:/ n卡姿蘭品牌營銷策劃方案卡姿蘭品牌營銷策劃方案 http:/ n克麗緹娜品牌重慶上市推廣方案克麗緹娜品牌重慶上市推廣方案nhttp:/ n萊坤男性化妝品營銷策劃書萊坤男性化妝品營銷策劃書nhttp:/ n名人掌上電腦智能王網絡營銷計劃書名人掌上電腦智能王網絡營銷計劃書 http:/ (2)分銷渠道(3)物流 (4)代理商(5)貨架批發商 (6)訂貨批發商(7)營業額 (8)利潤(9

28、)運營成本 (10)貨倉(11)售貨亭 (12)郵購公司(13)直接銷售 (14)多層直銷2.Cloze test and sentence rearrangement(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 PlanGroup presentation:Marketing plan 營銷計劃書營銷計劃書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