Discussion Topic-
xavierp
Chapter12SupplyChainsPowerPoint.pptx
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LO1
Explain what is meant by a marketing channel of distribution and why intermediaries are needed.
Distinguish among traditional marketing channels, electronic marketing channels, and different types of vertical marketing systems.
LO2
LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 12, YOU SHOULD BE ABLE TO:
12-2
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2
LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 12, YOU SHOULD BE ABLE TO:
LO3
Describe factors that marketing executives consider when selecting and managing a marketing channel.
Explain what supply chain and logistics management are and how they relate to marketing strategy.
LO4
12-3
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3
CALLAWAY GOLF: DESIGNING AND DELIVERING THE GOODS FOR GREAT GOLF
12-4
Calloway Golf
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FIGURE 12-1 The variety of terms used for marketing intermediaries that vary in specificity and use in consumer and business markets
12-5
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NATURE AND IMPORTANCE OF MARKETING CHANNELS THE VALUE CREATED BY INTERMEDIARIES
LO1
Functions Performed by Intermediaries
Transactional Function
Logistical Function
Facilitating Function
Utilities Received by Consumers
12-6
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6
FIGURE 12-2 Marketing channel intermediaries perform three functions, each consisting of different activities
12-7
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CHANNEL STRUCTURE & ORGANIZATION MARKETING CHANNELS FOR CONSUMER PRODUCTS AND SERVICES
LO2
Direct Channel
Indirect Channel
Retailers
WholesalersRetailers
AgentsWholesalersRetailers
12-8
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FIGURE 12-3 Common marketing channels for consumer products and services by the kind and number of intermediaries
12-9
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9
CHANNEL STRUCTURE & ORGANIZATION MARKETING CHANNELS FOR BUSINESS PRODUCTS AND SERVICES
LO2
Direct Channel
Indirect Channel
Industrial Distributor
Agents
AgentsIndustrial Distributors
12-10
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10
FIGURE 12-4 Common marketing channels for business products and services by the kind and number of intermediaries
12-11
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11
CHANNEL STRUCTURE & ORGANIZATION INTERNET & DIRECT MARKETING CHANNELS; MULTICHANNEL MARKETING
LO2
Internet Marketing Channels
Direct Marketing Channels
12-12
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FIGURE 12-5 Consumer Internet marketing channels are similar to those for consumer products and services
12-13
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13
CHANNEL STRUCTURE & ORGANIZATION DUAL DISTRIBUTION & STRATEGIC CHANNEL ALLIANCES
LO2
Strategic Channel Alliances
Honey Nut Cheerios Ad
12-14
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14
MARKETING MATTERS Nestlé and General Mills— Cereal Partners Worldwide
LO2
12-15
Cereal Partners
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15
FIGURE 12-6 Three types of vertical marketing systems: corporate, contractual (most popular), and administered
12-16
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16
CHANNEL STRUCTURE & ORGANIZATION VERICAL MARKETING SYSTEMS
LO2
Corporate Systems
Wholesaler-Sponsored Voluntary Chains
Contractual Systems
Retailer-Sponsored Cooperatives
Forward Integration
Backward Integration
12-17
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17
CHANNEL STRUCTURE & ORGANIZATION VERICAL MARKETING SYSTEMS
LO2
Contractual Systems
Franchising
Manufacturer-Sponsored Retail Franchises
Manufacturer-Sponsored Wholesale Franchises
Service-Sponsored Retail Franchises
Service-Sponsored Franchises
Administered Systems
12-18
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18
CHANNEL CHOICE AND MANAGEMENT CHANNEL CHOICE CONSIDERATIONS
LO3
Target Market Coverage (Density)
12-19
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19
CHANNEL CHOICE AND MANAGEMENT CHANNEL CHOICE CONSIDERATIONS
LO3
Information
Convenience
Variety
Pre- or Post-Sale Service
Buyer Requirements
Profitability
12-20
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20
USING MARKETING DASHBOARDS Channel Sales and Profit at Charlesburg Furniture
LO3
12-21
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21
CHANNEL CHOICE AND MANAGEMENT CHANNEL RELATIONSHIPS
LO3
Sources of Channel Conflict
Vertical Conflict
Horizontal Conflict
12-22
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22
CHANNEL CHOICE AND MANAGEMENT CHANNEL RELATIONSHIPS
LO3
Channel Influence
Economic
Expertise
Identification
Legitimate Right
Channel Captain
12-23
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23
LOGISTICS & SUPPLY CHAIN MANAGEMENT KEY CONCEPTS
LO4
Logistics Management
Customer Requirements
Customer Service
Supply Chain Management
Cost-Effective Flow
The Automotive Supply Chain
12-24
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FIGURE 12-7 Relating logistics management and supply chain management to supplier networks and marketing channels
12-25
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FIGURE 12-8 The automotive supply chain includes thousands of firms that provide the parts, components, and software in a typical car
12-26
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Aligning a Supply Chain with Marketing Strategy
Understand the Customer
Understand the Supply Chain
Harmonize the Supply Chain with the Marketing Strategy
LOGISTICS & SUPPLY CHAIN MANAGEMENT SUPPLY CHAIN MGMT & MKT STRATEGY
LO4
12-27
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MARKETING MATTERS IBM’s Integrated Supply Chain— Delivering a Total Solution for Its Customers
LO4
12-28
IBM Video
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LOGISTICS & SUPPLY CHAIN MANAGEMENT SUPPLY CHAIN MGMT & MKT STRATEGY
LO4
Dell: A Responsive Supply Chain
Wal-Mart: An Efficient Supply Chain
Cross-docking
12-29
Dell Web site
Walmart Web site
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29
TWO CONCEPTS OF LOGISTICS MANAGEMENT IN A SUPPLY CHAIN
LO4
Total Logistics Cost Concept
Customer Service Concept
12-30
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30
FIGURE 12-9 Supply chain managers balance total logistics cost factors against customer service factors
12-31
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KEY FUNCTIONS IN A SUPPLY CHAIN CUSTOMER SERVICE FACTORS
LO4
Time
Lead Time
Order Cycle Time
Replenishment Time
Quick Response
Efficient Consumer Response
12-32
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Dependability
Communication
Convenience
Vendor-Managed Inventory (VMI)
KEY FUNCTIONS IN A SUPPLY CHAIN CUSTOMER SERVICE FACTORS
LO4
12-33
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CLOSING THE LOOP: REVERSE LOGISTICS
LO4
UPS Video
12-34
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MAKING RESPONSIBLE DECISIONS Reverse Logistics and Green Marketing Go Together at Hewlett-Packard: Recycling e-Waste
LO4
12-35
HP Recycling Video
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35
AMAZON: DELIVERING THE GOODS…MILLIONS OF TIMES A DAY
VIDEO CASE 12
12-36
Amazon
Video case
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VIDEO CASE 12
AMAZON
1. How do Amazon.com’s logistics and supply chain management activities help the company create value for its customers?
12-37
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VIDEO CASE 12
AMAZON
2. What systems did Amazon develop to improve the flow of products from suppliers to Amazon distribution centers? What systems improved the flow of orders from the distribution centers to customers?
12-38
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VIDEO CASE 12
AMAZON
3. Why will logistics and supply chain management play an important role in the future success of Amazon.com?
12-39
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MARKETING CHANNELS FOR APPLE
IN-CLASS ACTIVITY 12-1
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ICA 12-1
Apple Marketing Channel Structure: Apple Online Store—Direct Channel
Customers
Consumer
Producer
Apple Store
Producer
E-commerce
Web Site
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ICA 12-1
Apple Marketing Channel Structure: Apple Retail Store—Direct Channel
Customers
Consumer
Producer
Apple Store
Producer
Retail Store
Outlet
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ICA 12-1
Apple Marketing Channel Structure: Ingram Micro/Best Buy—Indirect Channel
Customers
Ingram Micro
Web site
Best Buy Web site
Producer
Wholesaler/Distributor
Retailer
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ICA 12-1
Apple Marketing Channel Structure: MacMall Retail Store/Online/Catalog—Indirect Channel
Customers
Consumer
Producer
Retailer
Apple Store
Producer
MacMall
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MARKETING CHANNELS FOR FASTENAL
IN-CLASS ACTIVITY 12-2
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ICA 12-2
Marketing Channels
Fastenal
Web site
Example:
Marketing Channels for
Fastenal Fasteners
(Unique Heads/Tops)
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FIGURE 12-4 Common marketing channels for business products and services
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Marketing Channel
A marketing channel consists of Individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users.
12-48
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Multichannel Marketing
Multichannel marketing involves the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online.
12-49
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Dual Distribution
Dual distribution involves an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product.
12-50
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50
Vertical Marketing Systems
Vertical marketing systems are professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact.
12-51
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51
Intensive Distribution
Intensive distribution is a level of distribution density whereby a firm tries to place its products and services in as many outlets as possible.
12-52
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52
Exclusive Distribution
Exclusive distribution is a level of distribution density whereby only one retailer in a specific geographical area carries the firm’s products.
12-53
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53
Selective Distribution
Selective distribution is a level of distribution density whereby a firm selects a few retailers in a specific geographical area to carry its products.
12-54
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Channel Conflict
Channel conflict arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals.
12-55
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55
Disintermediation
Disintermediation involves channel conflict that arises when a channel member bypasses another member and sells or buys products direct.
12-56
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Logistics
Logistics consists of those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost.
12-57
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Supply Chain
A supply chain consists of a sequence of firms that perform activities required to create and deliver a product or service to ultimate consumers or industrial users.
12-58
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Total Logistics Cost
Total logistics cost consists of the expenses associated with transportation, materials handling and warehousing, inventory, stockouts (being out of inventory), order processing, and return goods handling.
12-59
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Customer Service
Customer service is the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience.
12-60
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60
Vendor-Managed Inventory (VMI)
Vendor-managed inventory (VMI) is an inventory-management system whereby the supplier determines the product amount and assortment a customer (such as a retailer) needs and automatically delivers the appropriate items.
12-61
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Reverse Logistics
Reverse logistics is a process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal.
12-62
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