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Introduction to business: distribution and pricing

1247d0fbb1983f2e8070809bb7acd6ef?s=47 Ted Major
March 24, 2016

Introduction to business: distribution and pricing



Ted Major

March 24, 2016

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  1. Distributing and pricing cc licensed ( BY NC SD )

    flickr photo by williamcho: http://flic.kr/p/6RNhKR
  2. Quiz • Closed book/closed notes • Put away phones until

    quiz is over • You may collaborate with your team • You are responsible for the answers on your quiz • You do not have to choose the same answers as your team
  3. marketing channels • wholesalers • retailers • direct

  4. Why not buy directly from manufacturer? CC licensed (BY-SA) wikipedia

    photo by Ryan Hildebrand https://commons.wikimedia.org/wiki/ File:2017_Lincoln_MKZ.jpg
  5. What value do intermediaries add? • match buyers & sellers

    (fewer transactions) • provide market information • promotion & sales support • gather assortment of goods • transport & store goods • assume risks • provide financing
  6. distribution strategy •exclusive • selective • intensive Service/cost

  7. Supply chain management • Challenges? –Too much inventory? –Too little?

    • Electronic data interchange (EDI) • Vendor-managed inventory (VMI) • Bullwhip effect
  8. flickr photo by Swift Benjaminhttps://flic.kr/p/9Tf88T shared under a CC (BY)

    license Near beer game http://forio.com/simulate/mbean/near-beer-game/run/
  9. pricing strategy cc licensed ( BY NC ND ) flickr

    photo by Roadsidepictures: http://flic.kr/p/4hVtfA
  10. flickr photo by <p&p> https://flic.kr/p/dgaFig shared under a CC (BY-NC-ND)

  11. flickr photo by improbcat https://flic.kr/p/5idoUS shared under a Creative Commons

    (BY-NC) license
  12. flickr photo by pyntofmyld https://flic.kr/p/7Y2S4L shared under a CC (BY)

  13. flickr photo by Concavo Wheels https://flic.kr/p/jwdgBg shared under a CC

    (BY) license
  14. flickr photo by Dave Pinterhttps://flic.kr/p/5KVmo4 shared under a CC (BY-NC-ND)

  15. Pricing strategies • Objectives? –achieve profit –build traffic –build market

    share –increase sales –create image
  16. Pricing approaches • Penetration • EDLP • High/low • Loss-leader

    • Prestige • Skimming • Cost-based • Target costing • Demand-based • Odd
  17. Breakeven analysis = ( − ) Fixed cost: $5000 rent/mo

    $5000 payroll Price: $4 Variable cost: $1