Chapter 12 Marketing Channels and Supply Chain Management
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1 Chapter 12 Marketing s and Supply Chain Management
2 The Place Component of the Marketing Mix: s of Distribution Logistics Materials Management Physical Distribution
3 Marketing s A set of interdependent organizations that facilitate the transfer of ownership as products move from producer to business user or consumer Supply Chain the connected chain of business entities (internal and external) that perform or support the channel functions
4 Marketing Functions Specialization and division of of labor Overcoming discrepancies Providing contact efficiency
5 Overcoming Discrepancies Discrepancy of Quantity The difference between the amount of product produced and the amount an end user wants to buy. Discrepancy of Assortment The lack of all the items a customer needs to receive full satisfaction from a product or products.
6 Providing Contact Efficiency 6
7 members - Intermediaries Retailers Organizations whose activities are directed toward sales to final (ultimate) consumers Wholesalers Organizations that sell to retailers or other wholesalers, and/or to businesses or institutions for use in the conduct of business
8 Intermediaries Retailers Take Title to to Goods Merchant Wholesalers Take Title to to Goods Agents and and Brokers Do Do NOT Take Title to to Goods
9 Factors Suggesting Type of Wholesaling Intermediary to Use Product characteristics Buyer Buyer considerations Market characteristics
10 s for Consumer Products Direct Retailer Wholesaler Agent/Broker Producer Producer Producer Producer Agents or Brokers Wholesalers Wholesalers Retailers Retailers Retailers Consumers Consumers Consumers Consumers
11 s for Business Products Direct Direct Industrial Distributor Agent/Broker Agent/Broker Industrial Producer Producer Producer Producer Producer Agents or Brokers Agents or Brokers Industrial Distributor Industrial Distributor Industrial User Govt. Buyer Industrial User Industrial User Industrial User
12 Alternative Arrangements Multiple channels Nontraditional channels Strategic channel alliances
13 Supply Chain Management Supply Chain A management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value.
14 Benefits of Supply Chain Management Means of differentiation Reduced costs Greater supply chain flexibility Improved customer service Higher revenues
15 Strategy Decisions Factors Affecting Choice Choice Level Level of of Distribution Intensity Market Factors Product Factors Producer Factors Intensive Distribution Selective Distribution Exclusive Distribution
16 Market Factors Customer profiles Consumer or Industrial Customer Market Factors That Affect Choices Size of market Geographic location
17 Product Factors Product Complexity Product Price Product Standardization Product Factors That Affect Choices Product Life Cycle Product Delicacy
18 Producer Factors Producer Resources Number of Product Lines Producer Factors That Affect Choices Desire for Control
19 Levels of Distribution Intensity Intensive A form of distribution aimed at having a product available in every outlet Selective A form of distribution achieved by screening dealers to eliminate all but a few in any single area Exclusive A form of distribution that established one or a few dealers within a given area
20 Leadership, Conflict, & Partnering Power, Control, Leadership Partnering Relationship Synergy Conflict Horizontal Vertical
21 Logistical Components of the Supply Chain Sourcing & Procurement Supply Chain Team Logistics Information System Production Scheduling Order Processing Inventory Control Warehouse & Materials Handling Transportation
22 s and Distribution Decisions for Services Minimizing wait times Managing service capacity Improving service delivery
Marketing Channels: Delivering Customer Value Chapter 12 BUS 101 WEEK 7
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