1 / 25

Chapter 12 Marketing Channels and Supply Chain Management

Chapter 12 Marketing Channels and Supply Chain Management. Firm. Customer. Channels. retail stores wholesalers telemarketing mail order catalogs

chandler
Download Presentation

Chapter 12 Marketing Channels and Supply Chain Management

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 12Marketing Channels and Supply Chain Management

  2. Firm Customer Channels • retail stores • wholesalers • telemarketing • mail order catalogs • web sites • "Push" : getting channels to carry your product • "Pull" : getting consumers to ask for your product by name

  3. Functions performed by intermediaries • Transactional (promote & negotiate) • Logistical • Facilitating (researching and financing)

  4. LogisticsorPhysicalDistribution Physical Distribution Gets It to Customers TISH TISH Coordinating the flow of information among channel members

  5. Supply Chain Management • Customer-driven philosophy • Goal is enhanced value • Two roles • Communicator of customer demand • Manager of the physical flow process

  6. Accumulating Bulk-Breaking Assorting Channel Specialists Adjust Discrepancies with Regrouping Activities Accumulating (EGGS) (Medical Clinics) Allocating or Bulk-Breaking QUANTITY COSTCO Heterogeneity Sorting (Grading Oranges) Assorting (Winn Dixie) ASSORTMENT

  7. Channel Specialists Increase Contact Efficiencies Multiplicative Rock Fan Pioneer Pop Fan Classical Fan JVC "Dr. E" Country Fan Magnavox Reggae Fan New Age Fan Sony Rap Fan

  8. Channel Specialists Increase Contact Efficiencies Rock Fan Pioneer Pop Fan Classical Fan Dan’s Stereos JVC "Dr. E" Country Fan Magnavox Reggae Fan New Age Fan Sony Rap Fan Additive

  9. Retailers Take Title to Goods Merchant Wholesalers Take Title to Goods Agents and Brokers Do NOT Take Title to Goods Channel Intermediaries

  10. Factors Suggesting Type of Wholesaling Intermediary to Use

  11. Types of Marketing ChannelsChannels for Consumer Products Direct Channel TRADITIONAL DUAL DISTRIBUTION & REVERSE CHANNELS

  12. Types of Marketing ChannelsChannels for Industrial Products

  13. CHANNEL STRATEGY DECISIONS Market exposure – optimal Selection of a Marketing Channel Intensity of Distribution Management of Relationships

  14. Intensity of Market Coverage Intensive Distribution MarketExposure Sell it where they buy it!

  15. Intensity of Market Coverage Selective Distribution MarketExposure Sell it where it sells best!

  16. Intensity of Market Coverage Extreme case of Selective Distribution. MarketExposure Exclusive Distribution

  17. VMS Vertical marketing system Contractual VMS Corporate VMS Administered VMS Planned channel system to improve distribution efficiency and cost effectiveness by integrating various functions Forward Integration Backward Integration

  18. Some to good Fairly good to good Complete Economic power and leadership Contracts One company ownership General Electric McDonald’s Florsheim Vertical Marketing Systems Focus on Final Customers Characteristics Type of channel Vertical marketing systems Administered Contractual Corporate Amount of cooperation Control maintained by Examples

  19. Firm Customer Channels • "Captive Channels" : channels owned by firm • "Non-Captive Channels" : channels not owned by firm • "When do retailers have "channel power"? • firm's product is not well differentiated from competitors • threat of backward integration (e.g. Shaw's cola)

  20. Firm Customer Channels Channel conflict examples • Firm: Your retail prices are too high, and are driving down demand • Retailer: With your wholesale prices, it’s the only way we can make money • Firm: You carry too many lines, our product isn't even noticed on shelves • Retailer: Customers come first. BTW, why don't you prune your line.

  21. Firm Customer Retail store Website • "free – riding" by internet channel • customers who use more than one channel get confused • return policies • origin of merchandise • different prices

  22. Manufacturer Retailer Distributor Consumers Vertical

  23. Retailer Retailer Retailer Retailer Distributor Horizontal

  24. Questions?

More Related