chapter 12 marketing channels and supply chain management
TRANSCRIPT
Chapter 12Marketing Channels and Supply Chain
Management
The Place Component of the Marketing Mix:
Channels of Distribution
LogisticsMaterials
ManagementPhysical
Distribution
Marketing ChannelsA 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
Marketing Channel Functions
Specialization and division of laborSpecialization and division of labor
Overcoming discrepanciesOvercoming discrepancies
Providing contact efficiencyProviding contact efficiency
Overcoming Discrepancies
Discrepancyof
Quantity
Discrepancyof
Quantity
Discrepancyof
Assortment
Discrepancyof
Assortment
The difference between the amount of product produced and the amount an end user
wants to buy.
The difference between the amount of product produced and the amount an end user
wants to buy.
The lack of all the items a customer needs to receive full satisfaction from a product or
products.
The lack of all the items a customer needs to receive full satisfaction from a product or
products.
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Providing Contact Efficiency
Channel members - IntermediariesRetailers –
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
Channel Intermediaries
RetailersRetailers
Merchant WholesalersMerchant
Wholesalers
Agents and
Brokers
Agents and
Brokers
Take Title to GoodsTake Title to GoodsTake Title to GoodsTake Title to Goods
Take Title to GoodsTake Title to GoodsTake Title to GoodsTake Title to Goods
Do NOT Take Title to GoodsDo NOT Take Title to GoodsDo NOT Take Title to GoodsDo NOT Take Title to Goods
Factors Suggesting Type of Wholesaling Intermediary to Use
Product characteristicsProduct characteristics
Buyer considerationsBuyer considerations
Market characteristicsMarket characteristics
Producer Producer Producer Producer
Consumers Consumers Consumers Consumers
Retailers Retailers Retailers
Wholesalers Wholesalers
Agents orBrokers
WholesalerWholesalerChannelChannel
RetailerRetailerChannelChannel
DirectDirectChannelChannel
Agent/BrokerAgent/BrokerChannelChannel
Channels for Consumer Products
Channels for Business Products
Producer
IndustrialUser
DirectDirectChanneChanne
ll
Producer
Govt.Buyer
DirectDirectChanneChanne
ll
Producer Producer Producer
IndustrialUser
IndustrialUser
IndustrialUser
IndustrialDistributor
IndustrialDistributor
Agents orBrokers
Agents orBrokers
Agent/Agent/BrokerBrokerChannelChannel
IndustrialIndustrialDistributorDistributor
Agent/BrokerAgent/BrokerIndustrialIndustrialChannelChannel
Alternative Channel Arrangements
Multiple channels
Strategic channel alliances
Nontraditional channels
Supply Chain Management
Supply ChainSupply 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.
Benefits of Supply Chain Management
Means of differentiationMeans of differentiation
Greater supply chain flexibility Greater supply chain flexibility
Improved customer serviceImproved customer service
Higher revenuesHigher revenues
Reduced costs Reduced costs
Channel Strategy Decisions
Factors Factors Affecting Affecting Channel Channel ChoiceChoice
Factors Factors Affecting Affecting Channel Channel ChoiceChoice
Producer FactorsProducer Factors
Product FactorsProduct Factors
Market FactorsMarket Factors
Exclusive DistributionExclusive Distribution
Selective DistributionSelective Distribution
Intensive DistributionIntensive Distribution
Level ofLevel ofDistributionDistribution
IntensityIntensity
Level ofLevel ofDistributionDistribution
IntensityIntensity
Market Factors
Market Market FactorsFactorsThat Affect That Affect ChannelChannelChoicesChoices
Market Market FactorsFactorsThat Affect That Affect ChannelChannelChoicesChoices
Customer profilesCustomer profiles
Consumer or IndustrialCustomer
Consumer or IndustrialCustomer
Size of marketSize of market
Geographic location
Product Factors
Product Product FactorsFactorsThat Affect That Affect ChannelChannelChoicesChoices
Product Product FactorsFactorsThat Affect That Affect ChannelChannelChoicesChoices
Product Complexity Product Complexity
Product StandardizationProduct Standardization
Product Life CycleProduct Life Cycle
Product DelicacyProduct Delicacy
Product PriceProduct Price
Producer Factors
Producer Producer FactorsFactorsThat Affect That Affect ChannelChannelChoicesChoices
Producer Producer FactorsFactorsThat Affect That Affect ChannelChannelChoicesChoices
Producer Resources Producer Resources
Number of Product LinesNumber of Product Lines
Desire for Channel ControlDesire for Channel Control
Levels of Distribution Intensity
IntensiveIntensiveA form of distribution aimed at having a product available in every outlet
A form of distribution aimed at having a product available in every outlet
SelectiveSelectiveA form of distribution achievedby screening dealers to eliminate all but a few in any single area
A form of distribution achievedby screening dealers to eliminate all but a few in any single area
ExclusiveExclusiveA form of distribution that established one or a few dealers within a given area
A form of distribution that established one or a few dealers within a given area
Channel Leadership, Conflict, & Partnering
ChannelRelationship
Synergy
ChannelRelationship
Synergy
Channel Conflict
Horizontal Vertical
Channel Power,Control, Leadership
Channel Partnering
Logistical Components of the Supply Chain
SupplySupplyChainChainTeamTeam
Sourcing & ProcurementSourcing & Procurement
Production SchedulingProduction Scheduling
Order ProcessingOrder Processing
Inventory ControlInventory Control
Warehouse & Materials HandlingWarehouse & Materials Handling
TransportationTransportationLog
isti
cs In
form
ati
on
Syst
em
Log
isti
cs In
form
ati
on
Syst
em
Minimizing wait times
Managing service capacity
Improving service delivery
Channels and Distribution Decisionsfor Services