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Ch.13
Ch.13
Ch.13
Ch.13
Ch.13
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Ch.13
Ch.13
Ch.13
Ch.13
Ch.13
Ch.13
Ch.13
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Ch.13
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Ch.13

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  • 1. Marketing Channels, Logistics &amp; Supply Chain Management<br />Intro to Marketing<br />Chapter 13<br />
  • 2. Marketing Channels(Distribution Channels)<br />System of marketing institutions that promote the physical flow of goods and services, along with ownership title, from producer to consumer or business user; also called distribution channel<br />Moving goods and services from producers to customers<br />
  • 3. Types of Channels<br /> - Producer – Consumer<br /><ul><li>direct channel
  • 4. by-passes marketing intermediaries
  • 5. component of direct selling</li></ul> - Producer-Retailer-Consumer<br /> - Producer-Wholesaler-Retailer-Consumer<br /><ul><li>traditional channel</li></ul> - Producer-Agent-Wholesaler-Retailer-Consumer<br /> May substitute Consumer<br /> for Business User<br />
  • 6. Types of Channels<br />Producer<br />Consumer<br />Consumer<br />Producer<br />Retailer<br />Producer<br />Retailer<br />Wholesaler<br />Consumer<br />Consumer<br />Producer<br />Retailer<br />Wholesaler<br />Agent/Broker<br />
  • 7. Dual Distribution<br />Movement of products through two or more distribution channels to reach the same target market<br />IBM: An Example of a Firm That Uses Dual Distribution to Sell Its Personal Computers<br />
  • 8. Reverse Channels <br />Channels designed to return goods to their producers.<br />
  • 9. Channel Strategy Decisions <br />
  • 10. Determining Distribution Intensity<br />Intensive Distribution<br /> - used for convenience goods<br /> - saturation coverage of the market<br />Selective Distribution<br /> - a firm chooses only a limited number of retailer in a market area to handle its product.<br /> - cooperative advertising is frequently used<br />Exclusive Distribution<br /> - specialty goods<br /> - one wholesaler or retailer in a geographic region.<br />
  • 11. Channel Management &amp; Leadership<br />Historically, producers or wholesalers served as channel captains, over small retailers. However, many retailers increasingly are taking on the role of channel captain as large chains assume traditional wholesaling functions.<br />
  • 12. Logistics And Supply Chain Management<br />Process of coordinating the flow of information, goods, and services among members of the distribution channel.<br />Physical Distribution<br />Activities to achieve efficient movement of finished goods from the end of the production line to the consumer. Transportation is part of it.<br />
  • 13. RFID – Radio Frequency Identification<br />Technology that uses a tiny chip with identification.<br />Information can be read from a distance by a radio frequency scanner.<br />
  • 14. Physical Distribution<br />Includes: transportation, warehousing, materials handling, protective packaging, inventory control, order processing, and customer service.<br />
  • 15. Customer Service Standards<br />The quality of service that the firm provides its customers.<br />It’s a powerful tool for influencing buyers perception of overall quality.<br />
  • 16. Transportation<br />Transportation costs are the largest expense item in physical distribution and is a key in customer service.<br />40%-60% of distribution cost of business<br />What has Deregulation done to transportation?<br />
  • 17. Classes for Carriers<br />All forms of transportation.<br />Ex: trucks<br />Common carriers are for-hire carriers who serve the general public.<br />Contract carriers contract to work for only specific customers and in only one industry.<br />Private carriers are not-for-hire carriers who transport for only one specific firm.<br />
  • 18. Major Transportation Modes<br />Railroad – most frequently used &amp; most efficient for bulk commodities over long distances.<br />Motor carriers – fast and flexible<br />Water carriers – slow but inexpensive<br />Pipelines – low-maintenance, dependable, and efficient<br />Air freight – fastest but very expensive<br />Intermodal – piggyback, fishyback, birdyback<br />
  • 19. Warehousing<br />Two types- Storage and Distribution<br />Automated warehouses<br />Inventory control systems – some firms utilize just-in-time management<br />Order processing is another physical distribution function<br />Protective packaging and materials handling.<br />

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