Answer: loss of control to product quality and safety; loss of control of technology; social responsibility; environmental sustainability; time it takes to ship to the us
Answer: process can be performed more efficiently and more cost-effectively.
Answer: Some firms will outsource production to companies abroad.
Answer: Direct selling is where there is direct sales contact with the final user. Channels using Marketing Intermediaries is when several different channels are used to deliver the product. Many times they are more efficient, less expensive, and less time-consuming than direct channels. Dual Distribution is the movement of products through more than one channel to deliver the product. Reverse Channels are designed to provide a way to return the product to the producer..
a) Intensive distribution
A marketing strategy under which a company sells through as many outlets as possible, so that the consumers encounter the product virtually everywhere they go: supermarkets, drug stores, gas stations, and the like. Soft drinks are generally made available through intensive distribution.
b) Selective distribution
Selective distribution is a useful tool at the disposal of the supplier since it can refuse to sell to those dealers that do not comply with the set criteria. This system is therefore interesting since it allows the supplier of products to organise its distribution according to its wishes and strategy.
c) Exclusive
agreement, a manufacturer appoints a preferred distributor to have the sole rights to sell its products in a defined territory. The manufacturer looks for the increased product demand created by a motivated, aggressive seller of its products.
a) Customer service (Organisational Structure)
The person in charge of the physical distribution should co-ordinate all Activities into an effective system to provide the desired customer service in the most efficient manner. Examples of organizational consideration are: (i) How can the five elements of physical distribution best be coordinated so that a team effort results? How can compartmentalization thinking be avoided? (ii) If a central head is established to direct all physical distribution activities, to whom should he report—The Head of the Marketing or The Chief Executive Officer?
b) Transportation
It is an essential element of physical distribution. It involves integrating the advantages of each transportation method by adopting containers and physical handling producers to permit transfers among different types of carriers.
For example, to place containers in railway flat cars and then load the containers on motor vehicles is called "piggy back" and if the containers are off loaded to water carriers, it is called "flash back." Exchange of containers between air and truck carriers are referred to as "Air truck" or "birdy back".
The marketing manager has to decide to (i) what mode or combination of modes of transportation (rail, truck, pipeline, water ways or air) should be used to transport products to warehouses and from there to customers? (ii) Should the transportation cost be reduced and the desired levels of customer service still maintained.
c) Inventory control
Inventory refers to the stock of products a firm has on hand and ready for sale to customers. Inventories are kept to meet market demands promptly. Inventory is the link interconnecting the customer's orders and the company's production activity.
Infact the entire physical distribution management rotates around the inventory management. Inventory management is the heart of the game of physical distribution.
Marketing managers undertake an inventory planning to develop adequate assortments of products for the target market and also try to control the costs involved in obtaining and maintaining inventory.
Marketing managers generally take three decisions while conducting inventory management, viz, (i) how can the track be kept, on a day-to- day basis of location, amount and the condition of the inventory? (ii) How can inventory information best be channelled to production managers or buyers for resale to help them schedule their activities? (iii) What inventory information can other departments in the organisation use to help them perform their functions efficiently?
d) Protective packaging and materials handling
It involves moving products in and out of a stock. It consists of routine tasks that can be performed through mechanisation and standardisation. Efficiency is increased through use of electronic data processing to control conveyor systems, order picking and other traffic flaws.
The modern mechanised handling services and protective packaging have improved the level of customer service and at the same time lowered physical distribution costs. Material handling and packaging services have also speeded up the order processing and movement of consignments.
e) Order processing
Order-processing and inventory control are related to each other. Order processing is considered as the key to customer service and satisfaction. It includes receiving, recording, filling, and assembling of products for dispatch. The amount of time required from the dates of receipt of an order up to the date of dispatch of goods must be reasonable and as short as possible.
It comprises in undertaking the processes that are needed to make certain orders processed quickly, accurately, and efficiently. The marketing manager has to decide about these along with such issues as what is the most efficient way to bill customers; how cans the paper work may be minimized? And how can the physical function of assembling orders more efficiently?
f) Communications
It is a process of passing information and understanding from one person to another. This includes the information system which should link producers, intermediaries, and customers. Computers, memory systems, display equipment and other communication technology facilitate the flow of information among other members in the channel.
A manager to be successful must develop an effective system of communication. So that he may issue instructions, receive the reactions of the subordinates, and guide and motivate them.
Answer: Entire network of entities, directly or indirectly interlinked and interdependent in serving the same consumer or customer. It comprises of vendors that supply raw material, producers who convert the material into products, warehouses that store, distribution centers that deliver to the retailers, and retailers who bring the product to the ultimate user. Supply chains underlie value-chains because, without them, no producer has the ability to give customers what they want, when and where they want, at the price they want.
Horizontal Conflicts
A horizontal conflict refers to a disagreement among two or more channel members at the same level. For example, suppose a toy manufacturer has deals with two wholesalers, each contracted to sell products to retailers in different regions. If one wholesaler decides to branch its operations into the other wholesaler's region, a conflict will result. If the toy manufacturer doesn't help solve the problem, its business dealings with both the wholesalers -- and the downstream retailers, as well -- might be in jeopardy.
Vertical Conflicts
Vertical conflicts involve a disagreement between two channel members on consecutive levels. For example, if the toy manufacturer discovers its products are arriving at retail stores later than scheduled, a conflict might develop between the manufacturer and the wholesaler responsible for shipping to retailers. At the same time, the retail stores might be in conflict with the wholesaler due to its inability to ship products on time.
Answer: Horizontal and vertical marketing conflicts involve disagreements among businesses in a marketing channel. A marketing channel is how a product moves from its manufacturer to the consumer. Channels have different stages, or levels. Typically, the first level of a channel is a factory. The second level is the wholesaler who buys a large number of products to sell to retail stores, which occupy the third and final level. When members of a channel disagree about methods or goals, conflicts ensue.
Answer: Channel marketing is primarily a strategy employed by large firms that offer many products across a wide sales territory.