REVIEWER – WEALTH CREATION

Made by: Libres, Alexandra For: Hojilla, Ralf

CHANNELS OF DISTRIBUTION

Channels of Distribution

distribution determining the locations and

methods that will be used to
make products available to
customers
channels of the routes that products and
distribution services take from the time
they are produced to the time Distribution Channel Design
they are consumed
TESLA
Types of Distribution Channels sells its electric vehicles directly to customers
through its website and company-owned
DIRECT showrooms
Manufacturer to consumer COCA-COLA
Services (Professional & Delivery) manufactures beverages and sells them to
INDIRECT retailers such as supermarkets, convenience
Uses people or businesses that stores, and vending machine operators, who
intermediaries move products between the then sell the drinks to consumers
manufacturer and the STAR BUCKS
consumer Raw Starbucks sources its coffee
S Intensive used commonly to distribute Material beans directly from farmers in
Distribution low priced or impulsive Suppliers: coffee-growing regions through
purchase products like its Farmer Support Centers.
chocolates, soft drinks Processors Beans are processed and
Exclusive involves limiting distribution roasted in Starbucks' own
Distribution to a single outlet facilities or contracted roasters.
Selective small number of retail Distributors Starbucks uses its own
Distribution outlets are chosen to distribution network and
distribute the products ex: logistics systems to deliver
computers, appliances etc products to its retail locations.
Retailers Starbucks coffee shops serve
Manufacturer to Consumer Direct customers directly through
their global network of stores.
Distribution End Customers purchase and
Consumers consume products at Starbucks
Sales ■ the Internet stores or through their online
channels ■ direct mail and mobile ordering systems.
may include: ■ television shopping
channels Distribution of Goods & Services
most cost-effective
limited sales opportunities Distribution Distribution channels will
Of Goods and vary based on the industry
Manufacturer to Retailer to Consumer Services needs.
Retail ○ offer the product at a
sales force sells goods to retailers Businesses convenient location during
retailers sell goods to consumers convenient times
more sales opportunities ○ use advertising to reach
customers
Manufacturer to Retailer to Consumer Service ○production and
Businesses consumption of the service
manufacturer sells large quantities to a happens at the same time
wholesaler ○ the service needs to be
lower production costs can lead to lower prices provided to the customer
more sales opportunities when the customer needs it
Manufacturing ○usually sell products to
Businesses other businesses.
○The other businesses sell to
the final consumer
 Physical Distribution Packaging

○transportation ○ storage ○ handling ○ The purpose of packaging is to protect the

packaging product from the time between production
and consumption.
Transportation
Receiving Goods to Sell
The best and most cost efficient
transportation method should be determined All types of businesses must receive goods
from suppliers
Product Storage and Handling

Benefits of efficient helps balance

storage include: supply and
demand of
products
Other considerations of adds to the cost
storage include: of products
increases the
risk of theft or
damage

PROMOTION
Pay-per-click Google, Bing, and other search engines
(PPC) allow you to create and run ad s that
advertising show beside or above the regular
search results for specific keywords.
These ads operate on a (PPC) pay-per-
click system, meaning that you pay
every time someone clicks on your ad.
(20K – 50K per month)
Social media Social media platforms like Facebook,
advertising Twitter, LinkedIn, and Instagram
allow you to create free accounts and
engage with customers.
Search engine process of improving the pages on your
optimization website so that they rank higher in
(SEO) search engine results for relevant
Promotion Strategies terms. The better optimized your site,
the more interested visitors and
promotional mix ○ advertising ○ potential customers you’ll attract.
publicity ○ Email marketing Although it’s one of the oldest forms of
personal selling Internet marketing, email still has one
○ sales of the highest ROIs of any online
promotion channel. However, the amount you
invest in it depends on the platform
Advertising you choose, as well as who creates the
content for your emails.
Content If your company’s website has a
a paid form of communication sent out by a marketing regularly updated blog . , you’re
business about a product or service already engaging in content marketing
to a certain extent. This strategy
Online Advertising simply refers to the creation and
promotion of original content , with the
increased as Internet usage has grow goal of informing readers and reaching
new potential customers.

Types of Online Advertising:

Banner Ad a graphic image or animation displayed within a rectangular box across the top or down the
side of a web page.
Floating Ad An ad which moves across the screen or floats above the page content
Wallpaper Ad An ad which changes the background of the page viewed.
Trick Banner a banner as that looks like a dialog box with buttons, often appearing like an error message or
Ad a alert.
Pop-Up Ad a new window that opens in front of the current one, displaying an advertisement.
Pop-Under Ad similar to a pop-up ad except that it loads behind the current window and does not appear
until the user closes one or more active windows.
 Television Advertising

commercials last less than a minute

infomercials last a half hour or more
DISADVANTAGES
it is very expensive
the audience is too broad to be effective for
most businesses

Radio Advertising

listener demographics are more specific than

television
pay for production costs
DISADVANTAGES
the message is purely audio
listeners may “surf the airways” during
commercials

Newspaper Advertising

Historically, newspapers were the single

largest form of advertising in the U.S.
DISADVANTAGES
Many people in the audience may not be
interested in your business.
Your ad faces a lot of competition from many
other ads in the newspaper.

Magazine Advertising

Magazines are an excellent way to aim

products and services at specific markets.
Local magazines that target a limited
geographic area are often the best choice for
small businesses.
DISADVANTAGES
National distribution can make some
magazines an inappropriate way to advertise
a local business.