Distribution and Pricing:: University of Cambodia

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University of Cambodia

BUS101, Sunday Morning


Lectured by: LEM PICHPISEY

DISTRIBUTION
AND PRICING:
RIGHT PRODUCT, RIGHT PERSON,
RIGHT PLACE, RIGHT PRICE

Group 5: Srin Vuochsim


Tim Sreypov
Chhoun Sreytouch
Contents:
I. Distribution
II. Wholesalers
III. Retailers
IV. Physical Distribution
V. Pricing Objectives and Strategies
VI. Pricing in Practice
I. Distribution: Getting Your
Product to Your Customer

 What is DISTRIBUTION?

Distribution Strategies
getting the right product
to the right person
at the right place
at the right time.
I. Distribution: Getting Your
Product to Your Customer (cont.)

Distribution Strategies

Channels of Physical
distribution distribution
the path that a the actual
product takes from movement of
the producer to the products along
consumer. that pathway.
I. Distribution: Getting Your
Product to Your Customer (cont.)

Channels of Distribution

➢ Direct Channel: A distribution


process that links the producer and
the customer with no intermediaries.

➢ Channel Intermediaries: Distribution


organizations that facilitate the
movement of products from the
producer to the consumer.
I. Distribution: Getting Your
Product to Your Customer (cont.)

The Role of Distributors:


 reduce the associated costs
for goods to flow from
producers to consumers
 add value, or utility (form,
time, place, ownership,
information & service)
II. Wholesalers: Sorting Out
the Options

 Who are Wholesalers?


Wholesalers are the distributors that
buy products from producers and
sell them to other businesses or
nonfinal users

independent wholesaling businesses

Merchant wholesalers agents/brokers


II. Wholesalers: Sorting Out
the Options (cont.)

Merchant Wholesalers: distributors who


take legal possession, or title, of the
goods they distribute.

 Full-service merchant wholesalers


 Limited-service merchant wholesalers
• Drop Shippers
• Cash and Carry Wholesalers
• Truck Jobbers
II. Wholesalers: Sorting Out
the Options (cont.)

Agents/brokers: Independent
distributors who do not take title of
the goods they distribute.
III. Retailers: The Consumer
Connection

 Who is retailer?
referred to the last stop of the distribution path
who directly sells goods and services to final
consumer.

 Retailers are divided into 2 categories:


1. Store Retailers

2. Nonstore Retailers
1. Store Retailers

 refer to retailers that distribute the products or services


that usually take place in shop or store.

 Three distribution strategies: Intensive, Selective, and


Exclusive
❑ Intensive: involves placing the products in many stores/ having
many stores in many locations as possible.
❑ Selective Distribution: placing your products only with preferred
retailers (or establishing your stores only in limited locations).

❑ Exclusive Distriubution: means having the products only in one


retail outlet in a given area.

/ known and
trusted car
dealership
2. Nonstore Retailers

 Opposite from store retailers, the key players are:

❑ Online retailing

❑ Direct-response retailing

❑ Direct Selling

❑ Vending
IV. Physical Distribution
 is concerned with the physical movement of the goods
from the producer to the consumer.
V. Pricing objectives and strategies:
A High-stakes game

 Buildingprofitability
 Boosting volume
 Matching the competition
 Creating prestige
V. Pricing in practice: a real-world
approach: A Real-world Approach
 Breakeven analysis
 Fixed margin pricing
 Consumer pricing perceptions: the strategic
wild card.
Thank You for Watching!

Please Reach Out to Us If
You Have Any Questions.

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