Inter net Exercise 1

Implication of using Internet on Distribution Coverage Distribution coverage Channel selection may depend upon the nature of market coverage desired There are three levels of distribution coverage: 1. Mass Coverage Mass coverage is also known as intensive distribution. As the name suggests in this level of distribution coverage the product is distributed to nearly all the locations where that type of product is sold. Mass coverage is suitable for low priced products with huge consumer demand. An example of such a product is Coca Cola. The product is available at all kind of stores, grocery stores, convenience stores, vending machines, hotels and more. The distribution cost for such products is very high however huge sales volume keeps the profits running high for the marketer. 2. Selective Coverage In selective coverage the product distribution is limited to certain selected locations. This is the case with products with a smaller market size. As the market size is small the number of locations needed to support the distribution of the product is also smaller. 3. Exclusive Coverage Exclusive coverage is ideal for products that target relatively smaller markets, for instance highend products have small customer size. These products are more than often purchased by customers who satisfy most of their needs with high quality, expensive products. Efficient and well-trained customer service is essential for satisfying and helping such customers. Due to these characteristics of the product as well as its buyers the marketer sells his products at select stores or exclusive group of resellers. Another kind of product which gets exclusive coverage is the one found only in company owned outlets. These may not be high-end products or very expensive but since they are found only in select outlets they are distributed exclusively. With the advent of internet the effectiveness of these three levels of distribution coverage has been severely challenged. This is so because all products sold on internet are distributed by mass coverage. Therefore these three distribution levels are best options for distribution of products that are physically purchased by a customer. The impact of internet marketing on distribution of a product is high. You can instantly have people Tweeting to millions of people that theyve bought and tried your product and then including a link to where they bought it. This works best if you give them a place to purchase online, but even if you only have an offline store front, it pays to launch a free or low-cost ad campaign online, even if you only implement web 2.0 tactics.

Implication of using Internet on Degree of control desired Degree of control desired Achieved by the seller is proportionate to the directness of channel. The degree of control that you will be able to exercise over the in-market channel will depend largely on your choice of channel and on your financial resources. Heavy advertising, for example, generates consumer demand and automatically draws products through the distribution chain.

Inter net Exercise 2

However, less affluent manufacturers should nevertheless endeavour to influence the intermediary's market coverage, prices, services, etc. A high degree of control over international channels of distribution is particularly difficult because of the often lengthy channels involved. Some companies set up their own distribution systems to solve this problem while others issue franchises or establish exclusive distributorships. Control should be two-tiered: (i) (ii) Control over the whole distribution system Control over individual intermediaries

Implication of using Internet on Total Distribution Cost Total distribution cost A channel of distribution should be viewed as a total system composed of interdependent subsystems and the objective of the system should be to optimize total system performance. The implication of Internet increases the total distribution cost. Implication of using Internet on Channel Flexibility Channel flexibility Ability of the manufacturer to adapt to changing conditions. This flexibility allows direct marketing to provide interactivity and measurability and still be able to take advantage of new technologies. By being able to utilize virtually any media, direct marketing will lead marketers into the 21st century as interactive television, the information highway, and other new technologies become a reality.

The details of the required companys distribution process of their products are as follows:Dell Computers
Dell markets and distributes its products primarily using the direct model of taking orders straight from customers. The advantage of direct distribution is that it gives a manufacturer complete control over their product. Potential customers are stratified into two broad categories: relationship buyers and transaction buyers. Relationship buyers are large organizations that are expected to have ongoing purchases. For relationship buyers, Dell uses sales personnel in the field to understand customer needs, help customers configure their information systems, and promote Dell products and services.

Gateway Computer Gateway computer was founded in the year 1985 and it was the first company to copy Dells successful sales model of direct PC sales. Customer can choose from the various configurations available depending on the need of the customer. There are various desktop computers and laptop computers available with Gateway Computers. The direct sales module was awesome with gateway Computers and as a result of which the Gateway computers became so popular amongst the people. During the time gateway computers came into being, there was a furious change in the computing world. Gateway has a wide range of computers, laptops, netbooks, peripherals and more. In 2007

Inter net Exercise 3

Gateway computers merged with Acer and the sales has increased a lot since then. Gateway sells its products to the third-party companies, consumers, business and government agencies.

Peapod Groceries A customer using Peapod benefits from the convenience of grocery shopping at any hour of the day from the comfort of their home or office. Also, customers benefit from finding new items through express shop which is a feature that lets shoppers write down a list and then provides them with matching products instantly and even allows them to personalize their own grocery lists according to recipe requirements or dietary needs. Another benefit of being a Peapod customer is being able to browse for products in a traditional grocery store aisle format, new arrivals icon which highlights new products, and a specials icon that easily displays weekly specials. An additional advantage of Peapods online grocery shopping will be that the company trains order assemblers so that they know what to look for in a piece of produce before selecting it for the customer. In addition, Peapod prepares their facilities and delivering vans with climate controlled zones, so that the food will be well kept at its adequate temperature and customers have the opportunity to choose when, as in time, theyll want their groceries to be delivered Amazon Amazon being a powerful global brand is recognizable because of two main factors: It is one of the original dotcoms that developed a customer base of over 30 million people in a period of about 10 years, and also known as an initiator for online technologies for e-commerce that made it one of the first online-retailers. It has a diversified product portfolio such as books, CD/DVD; it has also gained additional customers in other product areas that indicate the need for the business to grow through new customer bases. It has also provided the option of a market place where a seller can sell an unwanted item online and a buyer can buy it from that seller, there is usually a difference regarding the competing retailers as it ensures customer loyalty and trust, which makes the bond with the customer stronger and the loyalty is more durable. Purchases that cost more than $25 provide the shipping and on-time delivery free of cost. The customer also holds the option to having a Guaranteed Accelerated Delivery that is the delivery speed for the product to reach the destination. Amazon aims to focus on customer experience through offering a wide array of products at low prices at the most convenient possible way. The company aims to provide the world's biggest selection of merchandise while maintaining an organization that is operated from its customers' point of view.

The role played by the below mentioned companies in the new breed of channel intermediaries Why should a producer not indulge in selling his product directly to the consumer? Once the product reaches the hands of the intermediaries he loses control over them, so why does he take this risk? The reason is that the intermediaries manage the distribution costs efficiently. They are experienced and have potential contacts which add to their productiveness. Their scale of operation is large as compared to the manufacturer alone which means the scale of sales reached would be higher. While

Inter net Exercise 4

there are various organizations which operate their own distribution channel or do not take any help from channel members, there are others who are in need of some level of channel partnership. For instance Dell computers do not need retail stores for selling their product as they customers can buy directly through the internet. But still some amount of channel partnership is needed with parcel post shippers like FedEx and UPS for product distribution. If Dell were to accomplish this part of distribution too all by itself then it would have exhausted all its company resources to build a large shipping service to satisfy its huge customer base. Thus Dell and its customers are taking advantage of benefits provided by its shippers (a) Federal Express(Fedex) FedEx offers order processing and fulfillment services, streamlined distribution by guaranteeing 48-hour delivery globally, and just-in-time delivery for manufacturers. It's a suite of services that forms the backbone for Web-based companies like Dell. FedEx handles 59 million pounds of airfreight a month and has 624 airplanes, 42,500 vehicles, 145,000 employees and millions of square feet in its sorting centers. It sends 58 million electronic transmissions every day. The company relies on its information network as much as its air force and its ground troops. FedEx features include tracing shipments in transit and telling the shipper what's in each box. FedEx has launched FedEx Ship, its electronic network that allows businesses to print mailing labels and arrange for pickup of orders. FedEx has a service to help companies set up Web pages, including online catalogs, on FedEx's Internet server. The system allows clients to process orders and arrange for shipment, with FedEx as the default shipper.

(b) United Postal Service(UPS) While private sector companies may be more agile and innovative in internet technology, the USPS has the key advantage of already being a trusted intermediary in the US, it states.The public would see the Postal Service as providing an agenda-free, neutral platform offering a service at the lowest possible price and for the greater good, the report suggests. (c) YRC Shipping Capabilities Seamless transportation throughout Canada, Mexico, and the United States, including Alaska, Hawaii, Guam, U.S. Virgin Islands and Puerto Rico Reliable two-day, three-day and coast-to-coast service, connecting key markets. Expedited and guaranteed deliveries by ground or air with YRC Freight Time-CriticalTM service. Guaranteed delivery windows. We can accommodate any time windowwithin a specific hour, on a specific day or across multiple days. Dedicated protective services for a single shipment or an entire trailer. Special project and logistics management with Custom Projects.

Inter net Exercise 5

Transportation for volume shipments, tradeshow exhibits, cold-sensitive products, and product returns.

Industry Leadership Only transportation provider to guarantee delivery of tradeshow exhibits at no additional charge. Only transportation provider that offers dedicated protection and a guarantee for standard transit shipments with Sealed Divider Service. Only LTL transportation provider with representatives on site at all main border-crossing points in North America to expedite Customs clearance. One of the first transportation providers to be certified for the C-TPAT, PIP and FAST programs for supply chain security. First nationwide LTL transportation provider to receive ISO certification of its entire network and management systems for shipping goods from pickup to delivery. Certification in the internationally recognized ISO 9001:2008 standards assures that quality controls for system integrity and security are in place.

Information Technology Internet-based services provide in-transit shipment visibility and supply-chain management. Secure, web-based applications, electronic data interchange (EDI) and other technologies for you to use to manage your transportation processes. First transportation provider to combine cellular and satellite technologies to gather and send real-time data along local pickup and delivery routes. This two-way messaging and vehicle-tracking system for pickup and delivery operations improves responsiveness to your needs for pickup service and shipment information.

(d) Volusion Volusion helps you understand in 4 topics, what ecommerce is all about and what you can expect from it in the future. This video covers "the definition of ecommerce", "the short but impressive history", "the current state" and "the bright future of ecommerce". References:http://en.wikipedia.org/wiki/ http://content.dell.com/us/en/corp/about-dell.aspx?c=us&l=en&s=corp http://faculty.fuqua.duke.edu/~khshang/Working%20Papers/Marketing_on_the_Internet.pdf http://in.gateway.com/gw/en/IN/content/home