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Ch[1]. 13   Final
 

Ch[1]. 13 Final

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Managing Marketing Channels and Supply Chains

Managing Marketing Channels and Supply Chains

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  • This shows the sequence of firms that supply, manufacture, store, blend, and sell to the two primary paint consumer segments: (1) professional painters and (2) do-it-yourselfers.
  • Fed-Ex is a third-party logistics provider that performs some transportation functions, such as air and ground freight. Maersk provides multiple modes of transportation, including the use of containers on ships, trains, and trucks.

Ch[1]. 13   Final Ch[1]. 13 Final Presentation Transcript

  • CHAPTER MANAGING MARKETING CHANNELS AND SUPPLY CHAINS Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-1
  • AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO:1. Explain what is meant by a marketing channel of distribution and why intermediaries are needed.1. Distinguish among traditional marketing channels, electronic marketing channels, and different types of vertical marketing systems. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-2
  • AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO:1. Describe factors that marketing executives consider when selecting and managing a marketing channel.1. Explain what supply chain and logistics management are and how they relate to marketing strategy. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-3
  • APPLE STORES: ADDINGHIGH-TOUCH TO HIGH-TECH MARKETING CHANNELS Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-4
  • NATURE AND IMPORTANCE OF MARKETING CHANNELS• What is a Marketing Channel of Distribution?  Marketing Channel Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-5
  • FIGURE 13-1 Terms used for marketingintermediaries Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-6
  • NATURE AND IMPORTANCE OF MARKETING CHANNELS• Value Created by Intermediaries  Functions Performed by Intermediaries • Transactional Function • Logistical Function • Facilitating Function Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-7
  • FIGURE 13-2 Marketing channel functionsperformed by intermediaries Consumer Benefits from Intermediaries Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-8
  • CHANNEL STRUCTURE AND ORGANIZATION• Marketing Channels for Consumer Goods and Services  Direct Channel  Indirect Channels Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-9
  • FIGURE 13-3 Common marketing channelsfor consumer goods and services Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-10
  • CHANNEL STRUCTURE AND ORGANIZATION• Marketing Channels for Business Goods and Services  Industrial Distributor  Agent Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-11
  • FIGURE 13-4 Common marketing channelsfor business goods and services Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-12
  • CHANNEL STRUCTURE AND ORGANIZATION• Electronic Marketing Channels• Multiple Channels and Strategic Alliances  Dual Distribution  Strategic Channel Alliances Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-13
  • FIGURE 13-5 Representative consumerelectronic marketing channels Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-14
  • CHANNEL STRUCTURE AND ORGANIZATION• Vertical Marketing Systems  Corporate Systems • Corporate Vertical Marketing System • Forward Integration • Backward Integration Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-15
  • FIGURE 13-6 Types of vertical marketing systems Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-16
  • CHANNEL STRUCTURE AND ORGANIZATION• Vertical Marketing Systems  Contractual Systems • Contractual Vertical Marketing System • Wholesaler-Sponsored Voluntary Chains • Retailer-Sponsored Cooperatives Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-17
  • CHANNEL STRUCTURE AND ORGANIZATION• Vertical Marketing Systems  Contractual Systems • Franchising  Manufacturer-Sponsored Retail Franchise Systems  Manufacturer-Sponsored Wholesale Systems  Service-Sponsored Retail Franchise Systems  Service-Sponsored Franchise Systems  Administered Systems Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-18
  • Sherwin-Williams and H&R BlockWhat vertical marketing system does each use? Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-19
  • CHANNEL CHOICE AND MANAGEMENT• Factors in Choosing a Marketing Channel  Provide the Best Target Market Coverage  Best Satisfy the Target Market’s Buying Requirements  Be the Most Profitable Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-20
  • CHANNEL CHOICE AND MANAGEMENT• Factors in Choosing a Marketing Channel  Target Market Coverage • Intensive Distribution • Exclusive Distribution • Selective Distribution Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-21
  • CHANNEL CHOICE AND MANAGEMENT• Factors in Choosing a Marketing Channel  Satisfying Buyer Requirements • Information • Variety • Convenience • Pre- or Post-Sale Services  Profitability Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-22
  • Jiffy Lube and PETCOWhat buyer requirements are satisfied? Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-23
  • CHANNEL CHOICE AND MANAGEMENT• Channel Relationships: Conflict and Cooperation  Conflict in Marketing Channels • Channel Conflict • Vertical Conflict  Disintermediation • Horizontal Conflict Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-24
  • CHANNEL CHOICE AND MANAGEMENT• Channel Relationships: Conflict and Cooperation  Cooperation in Marketing Channels • Channel Captain  Economic  Identification  Expertise  Legitimate Right Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-25
  • LOGISTICS AND SUPPLY CHAIN MANAGEMENT• Logistics• Logistics Management  Flow of the Product  Cost-Effective  Customer Service Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-26
  • LOGISTICS AND SUPPLY CHAIN MANAGEMENT• Supply Chains versus Marketing Channels  Supply Chain  Supply Chain Management Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-27
  • FIGURE 13-7 Relating logistics managementand supply chain management to suppliernetworks and marketing channels Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-28
  • FIGURE 13-8: Sourcing, Assembling, andDelivering a New Car: The AutomotiveSupply Chain Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-29
  • FIGURE 13-A Paint industry supply chain Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-30
  • LOGISTICS AND SUPPLY CHAIN MANAGEMENT• Supply Chain Management and Marketing Strategy  Aligning a Supply Chain w/ Marketing Strategy • Understand the Customer • Understand the Supply Chain • Harmonize the Supply Chain with the Marketing Strategy Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-31
  • LOGISTICS AND SUPPLY CHAIN MANAGEMENT• Dell: A Responsive Supply Chain• Wal-Mart: An Efficient Supply Chain  Cross-Docking Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-32
  • TWO CONCEPTS OF LOGISTICSMANAGEMENT IN A SUPPLY CHAIN• Total Logistics Cost Concept• Customer Service Concept  Time • Order Cycle or Replenishment Time • Quick Response or Efficient Consumer Response Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-33
  • FIGURE 13-9 Supply chain managersbalance total logistics cost factors againstcustomer service factors Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-34
  • TWO CONCEPTS OF LOGISTICSMANAGEMENT IN A SUPPLY CHAIN• Customer Service Concept  Dependability  Communication  Convenience • Vendor-Managed Inventory (VMI) Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-35
  • FIGURE 13-B Advantages and disadvantagesof five modes of transportation Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-36
  • GOING ONLINEFINDING A FRANCHISE FOR YOU Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-37
  • Going Online1. Visit the Franchise.com website, and click on the “Franchise Buyer” link. Which franchise opportunities fit you? Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-38
  • Going Online2. Visit the International Franchise Association website, and click on the “Resource Center” link. Then, click on the “News” link. What are the current trends in franchising? Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-39
  • SUPPLEMENTAL LECTURE NOTE 13-2 TRANSPORTATION:A KEY LOGISTICS FUNCTION IN A SUPPLY CHAIN Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-40
  • FedEx and MaerskWhat transportation modes does each perform? Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-41
  • IN-CLASS ACTIVITY 13-1MARKETING CHANNELS FOR APPLE COMPUTER Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-42
  • Apple Computer ProductsMac mini iMac G5 iPod Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-43
  • Apple Computer Marketing Channel Structure: Online Apple Store - Direct ChannelProducerConsumer Customers Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-44
  • Apple Computer Marketing Channel Structure: Apple Retail Store - Direct ChannelProducerConsumer Customers Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-45
  • Apple Computer Marketing Channel Structure: CompUSA - Direct Channel/Strategic Channel AllianceProducerRetailer CompUSA Apple Employees Staff CompUSA Store-Within- A-StoreConsumer Customers Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-46
  • Apple Computer Marketing Channel Structure: Ingram Micro/Best Buy - Indirect ChannelProducer IngramWholesaler Micro Retailer Best BuyConsumer Customers Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-47
  • Apple Computer Marketing Channel Structure:MacMall Online/Catalog Sales - Indirect ChannelProducerRetailer MacMallConsumer Customers Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-48
  • IN-CLASS ACTIVITY 13-2MARKETING CHANNELS FOR FASTENAL’S UNIQUE THREADED FASTENERS Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-49
  • Fastenal FastenersCopyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-50
  • Fastenal Fasteners (Unique Heads/Tops) Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-51
  • Fastenal Fasteners (Unique Drivers/Tools) Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-52
  • FIGURE 13-C Common marketing channelsfor business goods and services Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-53
  • Marketing ChannelA marketing channel consists ofindividuals and firms involved in theprocess of making a product or serviceavailable for use or consumption byconsumers or industrial users. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-54
  • Dual DistributionDual distribution is an arrangementwhereby a firm reaches different buyersby employing two or more different typesof channels for the same basic product. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-55
  • Vertical Marketing SystemsVertical marketing systems areprofessionally managed and centrallycoordinated marketing channels designedto achieve channel economies andmaximum marketing impact. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-56
  • FranchisingFranchising is a contractual arrangementbetween a parent company (a franchisor)and an individual or firm (a franchisee)that allows the franchisee to operate acertain type of business under anestablished name and according tospecific rules. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-57
  • Intensive DistributionIntensive distribution is a level ofdistribution density whereby a firm triesto place its products and services in asmany outlets as possible. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-58
  • Exclusive DistributionExclusive distribution is a level ofdistribution density whereby only oneretail outlet in a specific geographicalarea carries the firm’s products. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-59
  • Selective DistributionSelective distribution is a level ofdistribution density whereby a firmselects a few retail outlets in a specificgeographical area to carry its products. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-60
  • Channel ConflictChannel conflict arises when onechannel member believes another channelmember is engaged in behavior thatprevents it from achieving its goals. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-61
  • DisintermediationDisintermediation is channel conflictthat arises when a channel memberbypasses another member and sells orbuys products direct. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-62
  • LogisticsLogistics consists of those activities thatfocus on getting the right amount of theright products to the right place at theright time at the lowest possible cost. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-63
  • Supply ChainA supply chain is a sequence of firmsthat perform activities required to createand deliver a good or service toconsumers or industrial users. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-64
  • Total Logistics CostTotal logistics cost consists of expensesassociated with transportation, materialshandling and warehousing, inventory,stockouts (being out of inventory), orderprocessing, and return goods handling. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-65
  • Customer ServiceCustomer service is the ability oflogistics management to satisfy users interms of time, dependability,communication, and convenience. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-66
  • Vendor-Managed InventoryVendor-managed inventory (VMI)is an inventory management systemwhereby the supplier determines theproduct amount and assortment acustomer (such as a retailer) needs andautomatically delivers the appropriateitems. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 13-67