Marketing Skittles

1074 Words Sep 10th, 2013 5 Pages
Place Assignment: Skittles

MKTG 211

March 29, 2013

Marketing channels are very important to both the manufacturer and the consumer. These channels are the way the manufacture releases their product to the consumer for purchasing. Manufactures can choose either a direct channel which is the means of selling customers or accepting orders from them. A sales force calls on customers and prospects to present information on products and persuade them to place orders. Retailer channel is the channel that manufacturers sell their goods directly to large retailers such as Amazon which then sell onto the final consumers. wholesaler channel typically buys and stores large quantities of several producers’ goods and then
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Costs include inventory an depreciation of the goods. There are several techniques that can help a business control; inventory such as the Economic Order Quantity (EOQ) model. Making it more cost efficient to control physical and financial inventory on products. WAREHOUSING: Is another component of the physical distribution system. Although mars has their own distribution warehouses there are many decision involved with deciding on the redistribution of products. It must be quick keeping them on the move as much as possible. Many distribution warehouses physically store goods for fewer than 24 hours before shipping them on to customers. The introduction of computer automation at warehouse level is allowing information on the product to be recorded, stored and shipped in shorter more efficient times and at a much lower rate of error.TRANSPORTATION: This is the final component of the physical distribution system. Transportation costs are largely based on the rates charged by carriers. There are two basic types of transportation rates: class and commodity. The class rate, which is the higher of the two rates, is the standard rate for every commodity moving between any two destinations. The commodity rate is sometimes called a special rate, since it is given by carriers to shippers as a reward for either regular use or large-quantity shipments. (enotes) Which ever transportation choice is made it must be
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