Int Ro To Ma Rke Tin G: Based On Basic Marketing, Shapiro, 8th CDN Ed. PPT Slides Created

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Based on Basic Marketing, Shapiro, 8th Cdn Ed. ppt slides created
and Copyright by Prof. Tim Richardson
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PROBLEM:
1. Industrial sales to auto assemblers OK
2. Retail sales of replacement tires doing
poorly
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COMPETITION:
1. Bridgestone / Firestone from Japan
2. Michelin from France / Germany
3. Both companies will sell at low low price to
increase North American market share
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SOLUTION re: PLACE

1. Sell replacement tires where people buy
them - SEARS
2. Sell higher quality tire through dealerships so
dealers can still bring in high end customers
3. Convert some stores to no-frills quick-serve
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Chpt 11 is about the distribution channels -

how do you get the product, physically, from
where it is made, to where people are going
to buy it
Chpt 12 is about storing, transporting etc.
Chpt 13 is about different types of retailing
and wholesaling firms
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- Time
- Place
- Possession/ownership utility
• Delivered at the right time - time utility

• Delivered to the right place - place utility
• With appropriate legal requirements -
possession / ownership utility
Based on Basic Marketing, Shapiro, 8th Cdn Ed. Page 287 ppt slides created
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Product Classes - Place
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• The different Product Classes have

different PLACE situations
• Place decisions can be aided by
knowing about the product classes
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Product Classes - Place
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• Convenience Products - have to be in

convenient places - small stores, vending
machines
• Shopping Products - have to be where
shoppers go, malls, superstores etc.
• Specialty Products - have to available
where people want to buy them - ie. Movie
theatres have to be located where many people go, and
where you can park easily
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Place and PLC
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• PLACE must be considered in terms of

the Product Life Cycle
• In the beginning Growth Stage - it might
be good to have your product sold in a
certain location, but in the maturity or
decline stage, you may have to change
locations to make it better for customers
who are no longer so strongly interested
in buying
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Place and PLC
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• PLACE must be considered in terms
of the Product Life Cycle
• Changing PLACEs, as you move through
the PLC, is very hard to do because it is
expensive and usually involves Real
Estate
• Place decisions are usually harder to
change than other marketing mix
decisions Page 366
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Discrepancies
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Page 369
• Discrepancy of Quantity
• Discrepancy of Assortment
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Discrepancies
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Page 369
• the mfg. Makes much more than
individual consumers want to buy each
time
• middlemen, wholesalers and retailers
break this amount down into smaller
amounts for individual consumers to buy
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Discrepancies
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Page 369
• … the difference between the quantity
of products it is economical for an
individual producer to make and the
quantity normally wanted by individual
consumers or users...
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Discrepancies
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Page 369
• Discrepancy of Assortment
• the difference between ALL the product lines a
mfg. Makes, and what the wholesaler wants to
sell, and what the consumer will buy
• middlemen, break this amount down into
different selections which the wholesalers want
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Discrepancies
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• middlemen, break this amount down into

different selections which the wholesalers want
• EG. KRAFT makes many many different types
of salad dressing
• A no-frills store just wants to sell 7 types cause
its customers don’t buy the fancy kinds
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Accumulation - combining products
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from several different producers. “…

make it more convenient for
companies to buy and handle…”
When farmers collect food, and sell

them to buyers who gather large
amounts for shipping to processors
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The Accumulating
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Breaking Bulk - take all the product

and physically move it into small
containers so it can be shipped to
wholesalers. “… divide larger
quantities into smaller quantities…”
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Sorting Page 3 7 1
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Separating products into grades and

qualities desired by different target
markets.
Eg. Food products, small onions, large
onions,
or white eggs, brown eggs
or …
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Sorting Page 3 7 1
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Taking heterogeneus commodities and

sorting them into homogenous categories
Eg. All apples into red apples and green
apples
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The process that helps producers,
• who produce different amounts,
• and different types,
• organize their products
• into categories/assortments
• to make it easier for the consumer
to buy. WTGR
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Assorting Page 3 7 1
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“… putting together a variety of

products to give a target market what it
wants…”
ie. In this video store, mostly Asian films
ie. In this record store, mostly hip hop
ie. In this jewelry store, mostly chains
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Assorting Page 3 7 1
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Some stores cannot take the full range of

a company’s product line - they do not
have the shelf space or floor space - so
they carefully select the brands of several
mfgs to sell.
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PAGE 373
“A person, or company, that helps

direct the activities of a whole channel,
and tries to avoid, or solve conflicts…”
However, some older products don’t have such a position.
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PAGE 373
Can be,,,
• A strong wholesaler
• a market oriented producer
• a large retailer
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PAGE 375
Note: explanation on bottom of page 374
Sometimes Middlemen have a clear

picture of what the customer wants,
and who the producers are, so they
arrange for producers to be in contact
and top of page 375
with the retailers, so more product can

flow in the channel. The Middlemen
makes more money by making nore
commission on stuff sold.
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• The whole channel focusses on the same

target market at the end of the channel
• sometimes a large firm will buy up the
smaller companies in the channel to have
more control over the distribution
(Corporate Channel Systems - page 376)
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The paths goods follow from consumer to
manufacturer or to marketing intermediaries.
Common in the recycling industries.
Eg.
- Empty glass bottles
- used batteries
- used tires Page 384
- used printer cartridges - Canon
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- used cartridges - Canon
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Reverse Channels
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Also used for product recalls or for broken products
that need to be fixed under Warranty - especially cars,
tires and some expensive electronic consumer items.
Important to maintain
consumer satisfaction and
confidence.

Int Ro To Ma Rke Tin G: Based On Basic Marketing, Shapiro, 8th CDN Ed. PPT Slides Created

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Slide 1

SOLUTION re: PLACE

Chpt 11 is about the distribution channels -

• Delivered at the right time - time utility

• The different Product Classes have

• Convenience Products - have to be in

• PLACE must be considered in terms of

• middlemen, break this amount down into

from several different producers. “…

When farmers collect food, and sell

Breaking Bulk - take all the product

Separating products into grades and

Taking heterogeneus commodities and

“… putting together a variety of

Some stores cannot take the full range of

“A person, or company, that helps

However, some older products don’t have such a position.

Sometimes Middlemen have a clear

with the retailers, so more product can

• The whole channel focusses on the same

- used printer cartridges - Canon

- used cartridges - Canon

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