[H] Place

1. [H]Place • 參考資料： • Judy Strauss, Adel I. El-Ansary, and Raymond Frost, E-Marketing, Prentice Hall, 2006. • Chap 12: The Internet for Distribution.

2. Environment, Strategy, and Performance (ESP Model) Legal - Ethical Technology Internet E Competition Other factors Markets SWOT E- Business S Strategy/ E-Marketing Strategy Implementation Marketing Mix Model P Performance Metrics

3. Link E-Business with E-Marketing Strategy • E-marketing strategic planning occurs in two highly interrelated tiers: Targeting Differentiation Tier 1 tasks Segmentation Positioning E-Marketing Strategy Offer Tier 2 tasks Value Communication Distribution

4. Overview • The Dell Story • Distribution Channel Overview • Types of Intermediaries (中間商): Wholesalers, Retailers, Brokers, Agents • Distribution Channel Length: Disintermediation (去中間商化), New intermediaries • Functions of a Distribution Channel: Transactional, Logistical, Facilitating Functions • Distribution System

5. 1. The Dell Story • Dell (http://www.dell.com/)

6. The Dell Story • Dell • The number one PC maker. • Sells about $ 40 million a day online, representing nearly half of its sales. (1) Business Model: Direct-distribution model • Eliminates wholesalers and retailers. • Complete control over inventory levels and distribution costs. • Direct monitor its customers’ needs.

7. The Dell Story (2) Mass customization • Allow customers to build their own computer systems for speedy delivery. • Dell offers an extensive menu of product components and lets the market decide their relative importance. • It analyzes what customers order and uses the information to guide new-product development.

8. The Dell Story (3) A tightly coordinated supply chain • Suppliers work closely with Dell engineers to keep R&D costs low and keep products flowing to customers as ordered. (4) Outstanding customer service • Huge customer database • supports its marketing communication and customer service efforts. • When a customer calls or e-mails, Dell responds quickly with an appropriate solution.

9. 2. Distribution Channel Overview • Group of interdependent firms that work together to transfer product and information from supplier to consumer + composed of: • Manufacturers of the product or service. • Intermediaries: the firms that match buyers and sellers and mediate the transactions among them. • Perform some of marketing functions more effectively & efficiently than other channel participants. • Consumers: consume or use the product or service.

10. Distribution Channel Overview • Four Elements of a Company’s Channel Structure: • Types of channel intermediaries. • Length of the channel. • Functions performed by members of the channel. • Physical and informational systems that link the channel members and provide for coordination and management of their collective effort to deliver the product or service.

11. 直接通路 自動販賣機、直銷、直效行銷(郵購、 型錄、電話、電視購物、網路購物)… 生產廠商 最終顧客 間接通路 7-11等便利商店 生產廠商 零售商 最終顧客 批發市場 生產廠商 批發商 零售商 最終顧客 進口 商品 生產廠商 代理商 批發商 零售商 最終顧客 2.1 Types of Intermediaries

12. Types of Intermediaries (1) Wholesalers (批發商) • Buy products from the manufacturer + resell them to retailers. • 交易金額與交易數量遠大於零售商，不像零售商需要注重店面佈置、氣氛及店址 (2) Retailers (零售商) • Buy products from wholesalers + sell them to consumers.

13. Types of Intermediaries (3) Brokers (經紀商) • Facilitate transactions between buyers and sellers without representing either party = market makers. • E.g.: 房屋仲介 (4) Agents (代理商) • Represent the buyer or seller + facilitate transactions between buyers and sellers but do not take title to the goods (無產品所有權). • Manufacturer’s agents: represent the seller. • Purchasing agents: represent the buyer.

14. 2.2 Distribution Channel Length • Number of intermediaries between supplier and buyer. • Direct distribution channel (直接通路) • No intermediaries, • The manufacturer deals directly with the consumer, • E.g. Dell Computer sells directly to customers. • Indirect channel (間接通路) • Incorporate one or more intermediaries, • Suppliers, a manufacturer, wholesalers, retailers, end consumers, • Intermediaries help to perform important functions.

15. Distribution Channel Length • Internet as a Distribution Channel • For digital products (e.g. software) • Entire distribution channel may be Internet based: the supplier can delivers it over the Internet to the buyer’s computer. • Non-digital products (e.g. flowers/ wine) • May be purchased online but must be delivered via truck. • The exact location of that shipment can be tracked using a Web-based interface (e.g. FedEx). • Disintermediation vs. New intermediaries.

16. (1) Disintermediation • Eliminating traditional intermediaries. • Taken to its extreme, internet allows the supplier to transfer goods and services directly to the consumer. • Initially, Internet was predicted to eliminate intermediaries. • Because it can potentially reduce costs. • The reasoning failed to recognize important facts: • Using intermediaries allows companies to focus on what they do best. • Traditional intermediaries have been replaced with Internet equivalents.

17. (2) New Intermediaries • The Internet has added new intermediaries. • E.g. Yahoo! Broadcast aggregates multimedia content • = Yahoo! and Yahoo! Broadcast • audio bookstore, radio broadcaster, and TV broadcaster. • E.g. Shopping mall, search engine, 104人力銀行… • Other intermediary: shopping agents, buyer cooperatives...

18. CNET Shopper Helps Users Find Computer-Related Products

19. 2.3 Functions of a Distribution Channel (1) Transactional Functions (交易功能) • Making contact with buyers. • Matching product to buyer needs. • Negotiating price. • Using marketing communication strategies to make buyers aware of products. • Processing transactions. • Electronic channels lower the cost to process transactions dramatically. • E.g. shopping basket or shopping cart.

20. Functions of a Distribution Channel (2) Logistical Functions (物流功能) • Are often outsource to third-party specialists (e.g. UPS, FedEx). • Physical distribution activities • transportation or inventory storage. • Most products sold online are still distributed through conventional channels.

21. Functions of a Distribution Channel (2) Logistical Functions (Cont.) • Product aggregation (產品聚集) • Suppliers operate more efficiently when they produce a high volume of a narrow range of products, But consumers prefer to purchase small quantities of a wide range of products. • Channel intermediaries perform the essential function of aggregating product from multiple suppliers so that the consumer can have more choices in one location.

22. Functions of a Distribution Channel (3) Facilitating Functions (促進功能) • Marketing Research. • Financing (財物融資). • Intermediaries want to make it easy for customers to pay in order to close the sale. • E.g. 汽車及房屋貸款。 • Online consumer purchases are financed through: • credit cards • special financing plans (小額付款, 電子貨幣, 電子錢包…)

23. 2.4 Distribution System • 實體配送流程 製成品 製成品 倉儲部門 存貨水準 要求運送 製造部門 顧客 零件和物料 確定，寄帳單 水準 管理供應 要求製造 訂單處理部門 下訂單 要求零件和物料 外部供應商 資訊流動 原料和製成品流動（運輸）

24. Distribution System • Distribution System • Consider the supply chain (includes upstream and downstream activities), the manufacturer, and the distribution channel as an integrated system. • = the value chain = integrated logistics. • Supply chain management (SCM, 供應鏈管理): • 供應鏈規劃：需求預測、製造排程、配銷規劃。 • 供應鏈執行：訂單履行、運輸、庫存、配銷等流程的管理。