Distribution

 1. Wrap up Distribution

 2. Link to Business Plan: Simple Business Plan

https://www.shopify.ca/blog/business-plan-template

3. fivers: https://www.fiverr.com

4. Most successful Shark Tank deals.Work not done...go to comp lab 506

Distribution

Follow-up to McDonalds: Video

Read the article on Distribution and answer the the questions at the end of the article.

A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the final buyer or the end consumer. Distribution channels can include wholesalers, retailers, distributors, and even the Internet.

Indirect Distribution
Indirect distribution involves distributing your product by the use of an intermediary for example a manufacturer selling to a wholesaler and then on to the retailer.
Direct Distribution
Direct distribution involves distributing direct from the manufacturer to the consumer For example Dell Computers providing directly to its target customers. The advantage of direct distribution is that it gives a manufacturer complete control over their product.

Place and Distribution Intermediaries Defined
Manufacturer: Person, group or firm that makes the product.
Wholesaler: The party that buys large quantities of a product from manufacturers and sells it to retailers. Wholesalers sell goods to other businesses, they do not sell directly to consumers.
Retailers: The organisation that sells products directly to consumers and end users. As they are selling to consumers for personal use, the goods are usually sold in small quantities.

Levels of Distribution channels
Zero level channel – Where the distribution happens from company to end customer.
One level channel – Distribution happens with a single agent in between. Example – From manufacturer to E-commerce companies. And from E-commerce to customer.
Two Level channel – Distribution happens with 2 business entities in between. Example – Goods flowing from manufacturer to Distributor >> Distributor to Retailer >> And Retailer to customer.
Three level channel – Distribution happening with 3 business entities in between. Example – Goods flowing from Manufacturer to C&F >> C&F to Distributor >> Distributor to Retailer >> And Retailer to customer.

PLACE – AN INTRODUCTION
Through the use of the right place, a company can increase sales and maintain these over a longer period of time. In turn, this would mean a greater share of the market and increased revenues and profits.
Correct placement is a vital activity that is focused on reaching the right target audience at the right time. It focuses on where the business is located, where the target market is placed, how best to connect these two, how to store goods in the interim and how to eventually transport them.

MAKING CHANNEL DECISIONS
Setting Goals and Direction
The first step to deciding the best distribution channel to use, a company needs to:
Analyze the customer and understand their needs
Discuss and finalize channel objectives
Work out distribution tasks and processes.
Some key questions to ask in finalizing these three areas include:
Where do users seek to purchase the product?
If is a physical store, is it a supermarket or a specialist store? Is it an online store? What is the access available to the right distribution channels?
What are competitors doing? Are they successful? Can best practices be used in making channel decisions?

Selecting Distribution Strategies

Intensive Distribution – This strategy may be used to distribute lower prices products that may be impulse purchases. Items are stocked at a large number of outlets and may include things such as mints, gum or candy as well as basic supplies and necessities.
Selective Distribution – In this strategy, a product may be sold at a selective number or outlets. These may include items such as computers or household appliances that are costly but need to be somewhat widely available to allow a consumer to compare.
Exclusive Distribution – A higher priced item may be sold at a single outlet. This is exclusive distribution. Cars may be an example of this type of strategy.

Assessing Benefits of Distribution Channels
While making channel decisions, a company may need to weigh the benefits of a partner with the associated costs. Some potential benefits to look out for include:
Specialists – Since intermediaries are experts at what they do, they can perform the task better and more cost effectively than a company itself.
Quick Exchange time – Being specialists and using established processes, intermediaries are able to ensure deliveries faster and on time.
Variety for the Consumers – By selling through retailers, consumers are able to choose between a varieties of products without having to visit multiple stores belonging to each individual producer.
Small Quantities – Intermediaries allow the cost of transportation to be divided and this in turn allows consumers to buy small quantities of a product rather than having to make bulk purchases. This is possible when a wholesaler buys in bulk, stores the product in a warehouse and then provides the product to retailers located close by at lower transportation costs.
Sales Creation – Since retailers and wholesalers have their own stakes in the product, they may have their own advertising or promotions efforts that help generate sales.
Payment Options – Retailers may create payment plans and options for customers allowing easier purchases.
Information – The distribution channel can provide valuable information on the product and its acceptability, allowing product development as well as an idea of emerging consumer trends and behaviors.

Assessing Possible Channel Costs
With the benefits in mind, here are some costs that a producer may have to weigh in order to make channel decisions
Lost Revenue – Because intermediaries need to be either paid for their services or allowed to resell at a higher price, the company may lose out on revenue. Pricing needs to stay consistent, so the company will have to reduce its profit margin to give a cut to the intermediary.
Lost Communication Control – Along with revenue, the message being received by the consumer is also in the hands of the intermediary. There is a danger of wrong information being communicated to the customer regarding product features and benefits which can lead to dissatisfaction.
Lost Product Importance – When a product is handed over to an intermediary, how much importance it gets is now out of the company’s hand. The intermediary may have incentives to push another product first at the expense of others.

IMPACT OF MARKETING MIX ON PLACE
No element of the marketing mix works in isolation. Information from each of them acts as input to the others. This is why when shaping a distribution strategy, input needs to be taken from all other elements of the mix and any considerations need to be addressed or incorporated. Product, price and promotion may have the following impacts on the distribution strategy.

Impact of Product Issues
The type of product being manufactured is often the deciding factor in distribution decisions. A delicate or perishable product will need special arrangements while sturdy or durable products will not require such delicate handling.
Impact of Pricing Issues
An assessment of the right price for a product is made by the marketing team. This is the price at which the customer will be willing to make the purchase. This price will often help decide the type of distribution channel. If this price does not allow a high margin, then a company may choose to use less intermediaries in its channel to ensure that everyone gets their cut at a reasonable cost to the manufacturer.
Impact of Promotion Issues
The nature of the product also has an impact on the type of promotions required to sell it. These promotion decisions will in turn directly affect the distribution decisions. Disposable goods or those of everyday use do not require too many special channels. But for a car, there needs to be extensive salesperson and user interaction. For this type of product, a specialist channel may be needed.

Questions: After reading...do you understand distribution?

Define and give an example of distribution in your own words.
What are the benefits of selling direct to consumer?
What are the negatives of selling your product through a retailer?
Why would car manufacturers want to sell their product through selective retailers?
Think of an example of a company that uses a zero level channel, in other words goes from manufacturer directly to the customer.
Explain the different channels of distribution Apple has for its I Phone products.
If you have a low margin on your product, why would it not be a good idea to sell your product through a retailer? 
List the three types of distribution that East Coast Lifestyle uses.

Types of Businesses/New Green Products/Business Ideas for 2020

Final Evaluation: You are to type up a full page Evaluation/Review of Learning. (10 marks)

PART 1: You should go through your notebook/ memory/ this blog and look over the content you learned this term in Marketing/Entrepreneurship. What new knowledge have you gained? What did you learn from working in groups, from the creative challenges and or from presentations. Try to connect some of the core competencies like communication skills, or critical and creative thinking, or personal responsibility.

PART 2: Define 3-4 things you enjoyed/liked or got value out of in the course. Then define 3-4 things you think could be improved upon, or done better. Focus on how the learning takes place not on what we learned. If you were creating the course again what was good, what could be improved upon?

Types of Businesses

A business entity is an organization that uses economic resources or inputs to provide goods or services to customers in exchange for money or other goods and services. Business organizations come in different types and different forms of ownership.

3 TYPES OF BUSINESS

There are three major types of businesses:

1. Service Business 

A service type of business provides intangible products (products with no physical form). Service type firms offer professional skills, expertise, advice, and other similar products.

Examples of service businesses are: salons, repair shops, schools, banks, accounting firms, and law firms.

2. Merchandising Business

This type of business buys products at wholesale price and sells the same at retail price. They are known as "buy and sell" businesses. They make profit by selling the products at prices higher than their purchase costs.

A merchandising business sells a product without changing its form. Examples are: grocery stores, convenience stores, distributors, and other resellers.

3. Manufacturing Business

Unlike a merchandising business, a manufacturing business buys products with the intention of using them as materials in making a new product. Thus, there is a transformation of the products purchased.

A manufacturing business combines raw materials, labor, and factory overhead in its production process. The manufactured goods will then be sold to customers.

Hybrid Business

Hybrid businesses are companies that may be classified in more than one type of business. A restaurant, for example, combines ingredients in making a fine meal (manufacturing), sells a cold bottle of wine (merchandising), and fills customer orders (service).

Nonetheless, these companies may be classified according to their major business interest. In that case, restaurants are more of the service type – they provide dining services.

FORMS OF BUSINESS ORGANIZATION

These are the basic forms of business ownership:

1. Sole Proprietorship

A sole proprietorship is a business owned by only one person. It is easy to set-up and is the least costly among all forms of ownership.

The owner faces unlimited liability; meaning, the creditors of the business may go after the personal assets of the owner if the business cannot pay them.

The sole proprietorship form is usually adopted by small business entities.

2. Partnership

A partnership is a business owned by two or more persons who contribute resources into the entity. The partners divide the profits of the business among themselves.

In general partnerships, all partners have unlimited liability. In limited partnerships, creditors cannot go after the personal assets of the limited partners.

3. Corporation

A corporation is a business organization that has a separate legal personality from its owners. Ownership in a stock corporation is represented by shares of stock.

The owners (stockholders) enjoy limited liability but have limited involvement in the company's operations. The board of directors, an elected group from the stockholders, controls the activities of the corporation.

In addition to those basic forms of business ownership, these are some other types of organizations that are common today:

Limited Liability Company

Limited liability companies (LLCs) in the USA, are hybrid forms of business that have characteristics of both a corporation and a partnership. An LLC is not incorporated; hence, it is not considered a corporation.

Nonetheless, the owners enjoy limited liability like in a corporation. An LLC may elect to be taxed as a sole proprietorship, a partnership, or a corporation.

Cooperative

A cooperative is a business organization owned by a group of individuals and is operated for their mutual benefit. The persons making up the group are called members. Cooperatives may be incorporated or unincorporated.

Some examples of cooperatives are: water and electricity (utility) cooperatives, cooperative banking, credit unions, and housing cooperatives.

Nestle: poor corporate citizen:Selling Bottled Water

Can Read the these articles and be prepared to discuss as a class. 

No clean water for 6 Nations 

Nestle's You Tube Corporate 

TAPPED: The Film on You Tube

Ecojustice: an update

 Greenwashing

Sustainable business, or a green business, is an enterprise that has minimal negative impact, or potentially a positive effect, on the global or local environment, community, society, or economy—a business that strives to meet the triple bottom line. Often, sustainable businesses have progressive environmental and human rights policies. In general, business is described as green if it matches the following four criteria:^[1]

1. It incorporates principles of sustainability into each of its business decisions.
2. It supplies environmentally friendly products or services that replaces demand for nongreen products and/or services.
3. It is greener than traditional competition.
4. It has made an enduring commitment to environmental principles in its business operations.

You are to watch both videos as a class. After watching, ( and potentially rewatching on your own) I would like you to respond to the videos. Maybe do a little extra research on your own.

A response can be any of the following: Length:1 page typed in length

• What did you think about the info? Does the info make you concerned, angry, surprised etc.?
• Do you have any further information to add to what you watched?
• Do you agree, disagree with the info presented?
• Does the video make you think about some aspect of the bigger picture? your own buying patterns? What opinions do you have about what you heard/viewed?
• How do you feel about company's who are using greenwashing as a promotional technique?
• What does the video say to you as a consumer? Do the films raise any questions for you?

You are not to answer these questions outright, but rather gather your thoughts and respond intelligently to one of the videos. This assignment t should be typed and will be due at the end of the class on Wed.

I will be grading this assignment on the following:

• Ability to present intelligent thoughts in a way that shows you have thought about the content of the video
• In your writing you will speak to the concept of sustainability in business

Ethics in Business: Wed. Nov 4

 We will finish the movie The Founder and you will have time to work on questions.

LINK to ETHICS in Business for discussion: Ethics

The four types of Corporate Social Responsibility are: environmental sustainability, direct philanthropic giving, ethical business practices and economic responsibility.Discussion in class: What would you do if your business received a bad review?

Discuss in group three ethical considerations for any business, but especially your own business.
As a business owner what things can you do to ensure ethical behavior in your business?

New inventions to help save the planet in the future.

The Founder Film Tues Nov. 3

The Founder Film Sheet 10 marks FULL ANSWER

If not in class, watch on Netflix at home.

1. How do the McDonald Brothers exemplify true entrepreneurial spirit?

2. What were some of the problems the McDonald brothers had when they first started out? How did they problem solve?

3. How did the brother educate their customer when launching the “speedy system.” 

4. Explain what a franchise is and how it works. List another common franchise.

5. List some of the problems with franchising.

6. List the positive and negative qualities of Ray Croc?

7. What are some of the problems with growth in any business?

8. With reference to the film, discuss the concept of ethics in business. 

9. List 3 things you learned about business from this film.