Marketing channels & scm ppt @ bec doms bagalkot mba


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Marketing channels & scm ppt @ bec doms bagalkot mba

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Marketing channels & scm ppt @ bec doms bagalkot mba

  1. 1. Marketing Channels & SCM 1
  2. 2. Learning Objectives 1. Explain what a marketing channel is and why intermediaries are needed.12 2. Define the types of channel intermediaries and describe their functions and activities. 2
  3. 3. Learning Objectives (continued) 3. Describe the channel structures for consumer and business-to-business products and discuss alternative channel arrangements.12 4. Define supply chain management andchapter discuss its benefits. 5. Discuss the issues that influence channel strategy. 3
  4. 4. Learning Objectives (continued) 6. Explain channel leadership, conflict, and partnering.12 7. Describe the logistical components of the supply chain.chapter 8. Discuss the concept of balancing logistics service and cost. 4
  5. 5. Learning Objectives (continued) 9. Discuss new technology and emerging trends in supply chain management.12 10. Discuss channels and distribution decisions in global markets.chapter 11. Identify the special problems and opportunities associated with distribution in service organizations. 5
  6. 6. Learning Objective 1 Explain what a marketing channelis and why intermediaries are needed. 6
  7. 7. Marketing Channels 1 A set of interdependent organizationsMarketing that ease the transfer of ownership asChannel products move from producer to business user or consumer. The connected chain of all the business Supply entities, both internal and external to the Chain company, that perform or support the logistics function. 7
  8. 8. Marketing Channel Functions 1 Specialization and Division of LaborChannels Fulfill Three OvercomingImportant DiscrepanciesFunctions Providing Contact Efficiency 8
  9. 9. Specialization and 1 Division of Labor Provides economies of scale Aids producers who lack resources to market directly Builds good relationships with customers 9
  10. 10. Overcoming Discrepancies 1Discrepancy The difference between the amount of of product produced and the Quantity amount an end user wants to buy.Discrepancy The lack of all the items a customer needs to receive full of satisfaction from a product orAssortment products. 10
  11. 11. Overcoming Discrepancies 1 A situation that occurs when a Temporal product is produced but aDiscrepancy customer is not ready to buy it. The difference between the Spatial location of a producer and theDiscrepancy location of widely scattered markets. 11
  12. 12. Contact Efficiency 1Zenith Sony RCA ToshibaZenith Sony RCA Toshiba Circuit City 12
  13. 13. Learning Objective 2 Define the types of channelintermediaries and describe their functions and activities. 13
  14. 14. Channel Intermediaries 2 A channel intermediary that Retailer sells mainly to customers. An institution that buys goodsMerchant from manufacturers, takes titleWholesaler to goods, stores them, and resells and ships them. Wholesaling intermediaries whoAgents and facilitate the sale of a product by Brokers representing channel member. 14
  15. 15. Channel Intermediaries 2 Take Title to Goods Retailers Merchant Take Title to GoodsWholesalers Agents and Do NOT Take Title to Goods Brokers 15
  16. 16. Channel Functions 2 Performed by Intermediaries Contacting/PromotionTransactional Negotiating Functions Risk Taking Physically distributing Logistical Storing Functions Sorting Facilitating Researching Function Financing 16
  17. 17. Logistics 2 The process of strategically managing the efficient flow and storage of raw materials, in- process inventory, and finished goods from point of origin to point of consumption. 17
  18. 18. Learning Objective 3Describe the channel structures for consumer andbusiness-to-business products and discuss alternative channel arrangements. 18
  19. 19. Direct Channel 3 A distribution channel in which producers sell directly to consumers. 19
  20. 20. Channels for Consumer Products 3 Direct Retailer Wholesaler Agent/BrokerChannel Channel Channel ChannelProducer Producer Producer Producer Agents or Brokers Wholesalers Wholesalers Retailers Retailers RetailersConsumers Consumers Consumers Consumers 20
  21. 21. Channels for Business-to-Business3 Products Direct Industrial Agent/Broker Agent/Broker DirectChannel Distributor Channel Industrial Channel ChannelProducer Producer Producer Producer Producer Agents or Agents or Brokers Brokers Industrial Industrial Distributor DistributorIndustrial Industrial Industrial Industrial Government User User User User Buyer 21
  22. 22. Alternative Channel Arrangements3 Multiple Channels Nontraditional Different Channels Channels May be Used Adaptive Channels Strategic Channel Alliances 22
  23. 23. Learning Objective 4Define supply chain management and discuss its benefits. 23
  24. 24. Supply Chain Management 4 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. 24
  25. 25. Supply Chain Management 4 Focus on Innovative Solutions Competitive with focus on Customer Satisfaction Results Synchronized Flow ofSupply ChainManagement Customer Value 25
  26. 26. Role of Supply Chain Management4 Communicator of customer demand from Role of point of sale to supplier Supply Chain Management Physical flow process that engineers the movement of goods 26
  27. 27. Supply Chain Management 4 Activities Determine channel strategy and level of distribution intensity Manage relationships in the supply chain Manage the logistical components of the supply chain Balance the costs of the supply chainwith the service level demanded by customer 27
  28. 28. Benefits of 4 Supply Chain Management Reduced Costs Improved ServiceCommon Benefits of Supply Chain Enhanced Revenues Management 28
  29. 29. Learning Objective 5 Discuss the issues thatinfluence channel strategy. 29
  30. 30. Channel Strategy Decisions 5 Issues that Influence Channel Strategy Factors Levels of Affecting Distribution Channel Intensity Choice Market Factors Intensive DistributionProduct Factors Selective DistributionProducer Factors Exclusive Distribution 30
  31. 31. Market Factors 5 Customer Profiles Consumer or Industrial CustomerMarket Factors Size of Market That Affect Channel Choices Geographic Location 31
  32. 32. Product Factors 5 Product Complexity Product Price Product Life CycleProduct Factors That Affect Channel Choices Product Delicacy 32
  33. 33. Producer Factors 5 Producer Resources Number of Product LinesProducer Factors That Affect Channel Desire for Channel Control Choices 33
  34. 34. Levels of Distribution Intensity 5 Number ofIntensity Level Objective Intermediaries Achieve mass market Intensive selling. Many Convenience goods. Work with selected intermediaries. Selective Several Shopping and some specialty goods. Work with single intermediary. Specialty Exclusive goods and industrial One equipment. 34
  35. 35. Learning Objective 6Explain channel leadership, conflict, and partnering. 35
  36. 36. Managing Channel Relationships 6 Channel Power Channel Control Social Dimensions Channel Leadership of Channels Channel Conflict Channel Partnering 36
  37. 37. Channel Power, 6 Control, and Leadership A channel member’s capacity toChannel control or influence the behavior Power of other channel members A situation that occurs when oneChannel marketing channel memberControl intentionally affects another member’s behavior. A member of a marketing channelChannel that exercises authority/power over Leader the activities of other members. 37
  38. 38. Channel Conflict 6 A clash of goals and methods between distribution channel members.Horizontal Occurs among channel members Conflict on the same level Vertical Occurs among channel members Conflict at different levels 38
  39. 39. Channel Partnering 6 The joint effort of all channel members to create a supply chain that serves customers and creates a competitive advantage. 39
  40. 40. Transaction- vs. 6 Partnership-Based FirmsTransaction-Based Partnership-BasedShort-term relationships Long-term relationshipsMultiple suppliers Few suppliersAdversarial relationships Cooperative partnershipsPrice dominates Value-added services dominateMinimal supplier investment High supplier/buyer investmentMinimal information sharing Extensive information sharingFirms are independent Firms are interdependentMinimal functional Extensive functionalarea interaction area interaction 40
  41. 41. Learning Objective 7Describe the logistical components of the supply chain. 41
  42. 42. Integrated Logistical 7 Components of the Supply Chain Sourcing & Procurement Logistics Information System Production SchedulingSupply Order Processing & Customer ServiceChain Team Inventory Control Warehouse & Materials Handling Transportation 42
  43. 43. Sourcing and Procurement 7 Plan Purchasing Strategies Develop Specifications Role ofPurchasing SelectDepartments Suppliers Negotiate Price Negotiate Service Levels 43
  44. 44. Production Scheduling 7 Traditional Focus Customer FocusPush/Pull Push PullStrategyStart of Customer-Order Inventory-BasedProduction Based Manufacturing Mass Production Mass Customization 44
  45. 45. Just-in-Time Manufacturing 7 A process that redefines and simplifies manufacturing by reducing inventory levels and delivering raw materials just when they are needed on the production line. 45
  46. 46. Benefits of JIT 7 Reduces raw material inventories Shortens lead times Creates better supplier relationships Reduces production and storeroom costs Reduces paperwork 46
  47. 47. Electronic Data Interchange 7 Information technology that replaces paper documents that accompany business transactions. 47
  48. 48. Inventory Control System 7 A method of developing and maintaining an adequate assortment of materials or products to meet a manufacturer’s or a customer’s demand. 48
  49. 49. Warehouse and 7 Materials-Handling Receive goods into warehouse Identify, sort andFunctions label goods ofMaterials Dispatch the goods toHandling temporary storage Recall, select, or pick the goods for shipment 49
  50. 50. Transportation 7 Cost Transit Time Reliability Criteria Capability forTransportation Accessibility Mode Choice Traceability 50
  51. 51. Criteria for Ranking 7 Modes of Transportation Highest LowestRelative Truck Rail Pipe Water AirCostTransit Water Rail Pipe Truck AirTimeReliability Pipe Truck Rail Air WaterCapability Water Rail Truck Air PipeAccessibility Truck Rail Air Water PipeTraceability Air Truck Rail Water Pipe 51
  52. 52. Learning Objective 8 Discuss the concept ofbalancing logistics service and cost. 52
  53. 53. Logistics Service 8 Interrelated activities performed by a member of the supply chain to ensure that the right product is in the right place at the right time. 53
  54. 54. Logistical Competencies 8 Devise logistics service strategies as a means of competitive differentiation Integrate members of supply chain to achieve operating excellence Respond quickly to changing logistical requirements Constantly monitor all aspects of the supply chain 54
  55. 55. Learning Objective 9 Discuss new technology and emerging trends insupply chain management. 55
  56. 56. Trends in 9 Supply Chain Management Advanced Computer Technology TrendsAffecting the Logistics Outsourcing of Logistics Functions Industry Electronic Distribution 56
  57. 57. Learning Objective 10Discuss channels and distribution decisions in global markets. 57
  58. 58. Channels and Distribution 10 Decisions for Global Markets Channel structure differs Global Channel Channel types differ Development “Gray” marketing channels Awareness of trade legalities Global SupplyChain Management Transportation Infrastructure 58
  59. 59. Learning Objective 11 Identify the special problems and opportunities associated withdistribution in service organizations. 59
  60. 60. Channels and Distribution 11 Decisions for Services Minimizing wait times Managing service capacity Areas of Focus Improving delivery for through new channelsService Distribution 60