Adobe Captivate Monday, December 05, 2016 Page 1 of 24 .docx

Adobe Captivate Monday, December 05, 2016
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Adobe Captivate Wednesday, December 07, 2016
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BBA 3201, Principles of Marketing 1
Course Learning Outcomes for Unit VII
Upon completion of this unit, students should be able to:
6. Discuss supply chain and logistics management in marketing.
6.1 Compare competing businesses' responses to supply chain
and logistics innovations.
6.2 Examine emerging factors that can negatively affect the
supply chain and logistics
management.
Course/Unit
Learning Outcomes

Learning Activity
6.1
Unit Lesson
Video: Marketing: Secrets of Branding
Video: Online and Mobile Business Marketing
Video: Marketing Research and Information
Video: Global Car: Who Really Builds the American
Automobile?
Video: Amazon.com and the World of E-commerce
Video: Midwest Manufacturers Fight to Stay Competitive in
Global Marketplace
Unit VII Essay
6.2
Unit Lesson
Video: Marketing: Secrets of Branding
Video: Online and Mobile Business Marketing
Video: Marketing Research and Information
Video: Global Car: Who Really Builds the American
Automobile?
Video: Amazon.com and the World of E-commerce
Video: Midwest Manufacturers Fight to Stay Competitive in
Global Marketplace
Unit VII Essay
Reading Assignment
In order to access the following resources, click the links
below. Note: The transcript for each video is
available to view and/or print by clicking on the “Show
Transcript” tab on the right side of the video page.

You are only required to view the following portion of the video
below: Segment 7 titled "Marketing Research"
(2:40 in length).
Bartholomew, J. (Producer & Director). (2014). Marketing:
Secrets of branding [Video file]. Retrieved from
https://libraryresources.columbiasouthern.edu/login?auth=CAS
&url=http://fod.infobase.com/PortalPla
ylists.aspx?wID=273866&xtid=58811&loid=279773
below: Segment 2 titled "Online Marketing:
Website Goals and Analytics" (2:37 in length).
Granberry, R. (Producer). (2014). Online and mobile business
marketing [Video file]. Retrieved from
UNIT VII STUDY GUIDE
Supply Chain Management
&url=http://fod.infobase.com/PortalPlaylists.aspx?wID=273866
&xtid=58811&loid=279773
&xtid=58811&loid=279773

&xtid=53460&loid=224925
&xtid=53460&loid=224925
BBA 3201, Principles of Marketing 2
UNIT x STUDY GUIDE
Title
You are required to view the video below in full (9:02 in
length).
Hopewell, L. D. (Producer), & Deege, R. (Director). (1998).
Marketing research and information [Video file].
Retrieved from
ylists.aspx?wID=273866&xtid=10140
below: Segment 23 titled "Supply Chain
Management in a Global Market." (3:05 in length).
Leonard, C., Ringer, J. (Producers), & Billingsley, D.
(Director). (2009). Global car: Who really builds the
American automobile? [Video file]. Retrieved from

below: Segment 1 titled "Profit and
Investment" (6:34 in length).
MacNeil/Lehrer Productions (Producer). (1999). Amazon.com
and the world of e-commerce [Video file].
Retrieved from
below: Segment 5 titled "Short Supply Chain"
(2:12 in length).
MacNeil/Lehrer Productions (Producers). (2007). Midwest
manufacturers fight to stay competitive in global
marketplace [Video file]. Retrieved from
Unit Lesson
Click here to access the Unit VII Lesson presentation. (Click
here to access the PDF version of this
presentation.)

&xtid=10140
&xtid=10140
&xtid=41400&loid=84374
&xtid=41400&loid=84374
&xtid=10069&loid=20767
&xtid=10069&loid=20767
&xtid=53378&loid=222917%20
&xtid=53378&loid=222917%20
https://online.columbiasouthern.edu/bbcswebdav/xid-
78840031_1
https://online.columbiasouthern.edu/bbcswebdav/xid-
78840032_1
Print This Document

The computer industry is changing the way it does business.
Tom Bearden reports.
Henry Ford revolutionized manufacturing when he invented the
assembly line. Historians may
eventually put Michael Dell in the same class of innovators.
He's turned the assembly line idea on its
ear, and parlayed it into a host of factories like this one all over
the world.
The story goes that, in Henry Ford's factory, you could have any
color Model T you wanted, as long
as it was black. If you want a Dell computer, it's custom built to
your specifications. They call this
the direct model of manufacturing, and it's the hottest idea in
computers since the microprocessor.
Michael Dell got into making computers as a student at the
University of Texas in the early '80s. He
took orders from fellow students, bought all computers, and
then upgraded and customized them.
Dell reportedly made $180,000 in his sophomore year, and
promptly left school to start his own
company.
When I was in college, I saw that the computer distribution
system in this country was really very
inefficient. You buy a computer for $3,000 that consisted of
about $600 worth of parts. And there
were several different steps along the way they weren't really
needed.
So I saw that, by having a direct relationship with the customer,
you could not only provide a better
level of service, but do so at a much better cost, and that was
the basis of the founding of our
company.
Dell's dorm room idea has grown into a company with nearly
18,000 employees in 42 countries. Dell
computers are built in Texas, Ireland, Malaysia, and China, and
another plant will open later this

year in Brazil. It's the fastest growing computer company in the
world, and they still build them to
order.
Then Dell came to see me.
So I called Dell.
I went to Dell on the internet.
And they built it.
And they built it.
Just for me.
Just for us.
34-year-old Dell says the direct sales model is the key to his
success.
Essentially, it's a smarter way to buy the product, with a higher
level of service.
Page 1 of 5Print Preview
9/29/2016http://fod.infobase.com.libraryresources.columbiasout
hern.edu/p_ViewVideo.aspx?xtid=1...
And if you do have any questions or you need anything in the
future, just don't hesitate to give me a
call.
It all begins with an order is placed by telephone or increasingly
via the internet. Dell is the largest
online seller of computers, each day moving $5 million worth
on the net. The bulk of their customers
are businesses. Manufacturing director Lois Goss showed us
how the customer specifications are
printed on a piece of paper called a traveler.
This is like a customer order. And so, on this piece of paper is
everything that we're going to put in a
unit for this customer.
Workers use the traveler to pluck the appropriate parts from

bins and put them all in a box, which
then goes to an assembly area.
Everything the cell assembly operator needs is at their disposal.
Like a model airplane kit.
Absolutely, just like a model airplane kit.
But unlike Ford's assembly line, where a product traveled down
a conveyor belt and many people
worked on it, construction here is done by teams known as cells,
who do the entire assembly.
These two operators are a team, and they're actually going to
build the computer up. Once they build
the computer up, their other team member in the cell is a quick
test operator, and they will do a quick
test on it to be sure the unit is functioning correctly.
If it works, three hours of rack testing follow to make sure all
the components and software are
operating. The whole process, from the initial receipt of the
order to sending the finished computer
out the door, takes just four hours, but that's still too long for
Goss.
This is our challenge. This is what we're looking at is to reduce
the test times down. We would like
to get this to two hours.
If all this looks easy, it's not, according to Keith Maxwell, the
man who designed the system.
If you look it, the assembly process, it looks like a water ballet.
If you look at the people doing a
water ballet, it looks beautiful on top and everything's
orchestrated. You go look underneath the
water, and their legs are just thrashing like crazy.
That's what happens below the surface is there's huge amounts
of activity going on to go drive the
demand, to equal the supply, and to continually be evolving the
supply base to be able to meet the
flexibility we need to go do things in the time frame we want to.
You're dancing as hard as you can.

Dancing as hard as we can.
The biggest advantage of direct sales is inventory control. Most
manufacturers forecast demand,
construct the machines, and ship them to retailers. The problem
is, if the forecast is wrong, they're
stuck with a lot of machines they have to dump at a steep
discount.
On top of that, computer sitting on shelves lose their value as
newer and faster machines enter the
pipeline. Dell doesn't build a computer until it's ordered, and
therefore has no inventory problem.
John Schreiber, a financial analyst with Janus Mutual Fund,
says that gives Dell a huge pricing
advantage.
Dell carries roughly seven to eight days of inventory. So it's
turning its inventory roughly 50 times a
year. If you look at competitors like Compaq, Hewlett Packard,
IBM, they're really dealing with
three to four weeks of inventory in the channel.
Add to that three to four weeks roughly within the factory
walls, and you're talking about six to eight
weeks of inventory as compared to Dell's one week. That alone
gives Dell a five to seven percent
pricing advantage. And when you add, on top of that, the margin
that the reseller is taking to stay in
business, Dell really enjoys a 10 to 15 percent price advantage
out of the chute.
If there is any cloud on Dell's horizon, it's the prospect of

facing its own weapon in the marketplace.
The number one computer maker, Compaq, announced recently
it will begin selling computers
directly to consumers via the phone and the internet. Moving
toward direct sales is a tricky business
for a company whose dealers still sell most of its product.
But, Compaq vice president Mike Winkler says Compaq's
retailers understand the computer business
is undergoing a fundamental change.
What they have recognized is that their business model must
change over time as well. That they
must be less dependent on hardware, and more on software,
support, services, and consulting with
the customer. And that's what they're starting to do now.
And we're helping them in that way by trying to push business
their way that enables them to get this
higher margin services business, that we believe more than
compensates for the loss in some of the
hardware business.
Speakers come with the monitor.
Exactly.
Despite the advantages of direct sales, Compaq is not deserting
retailers, assuming there will always
be customers who prefer that way of doing business.
Part of it is they like, what I call, a single throat to choke. They
want a single point accountability for
the success of their installation.
With Yourware, people like my dad can buy a computer with an
Intel Pentium II processor and
unlimited internet access for just 449.95 a month.
Executives at Gateway, and the company that sells computers in
those quirky, cowhide looking
boxes, agree about that single point of accountability.
What do you call this thing?
Yourware.
Yourware. That's different.

of 5Print Preview
The South Dakota based manufacturer has been selling
computers directly, primarily to home users,
for about as long as Dell. But, two years ago, Gateway began
building what they call Country Stores
to sell their products.
Now how long does it take to get these systems once you place
an order?
Usually about a week.
They now have 150 of them, places where customers can try out
various models and then order a
computer to be built just for them.
This is the standard monitor on there.
Gateway believes this combines the best of both retailing and
direct sales. Joe Burke is in charge of
the Gateway Country stores.
It's actually about 25% of all PCs sold in the US are in the retail
channel, and unless and until we
participated in that channel, we weren't going to serve any of
those customers. When we came up
with the model for Gateway Country, we took a look at what
was wrong with the PC buying
experience and tried to address all of those issues.
When you walk in from the environment, the store look
somewhat engaging, it looks different. It's
not a typical warehouse or grocery store set up. It's rather
engaging. You can get hands on and live
demo with every piece of technology here in the store.
Several giant retailers have also started to see the direct

handwriting on the wall.
It's really very simple. Sales counselor determines term your
needs, comes up to the kiosk here, and
determines that you wanted the Pentium II 400.
Places like CompUSA and Circuit City have installed kiosks
where customers can order directly
from a variety of computer manufacturers. Mike Ryan is in
charge of computer sales for Circuit
City.
The manufacturers realized that this is what we needed to do to
serve the customer better and
optimize what we call supply chain management, or the amount
of inventory that's in the stores. And
we want to balance that, because we know there was some stuff
that people wanted to order direct,
and some stuff in the store.
So this gives you access to a market you didn't have before?
Yeah, I think that's true. I think the direct customer wanted
certain choices that we weren't able to
offer them on the fly. They wanted to have a better video card.
They wanted to have Microsoft Small
Business Edition so that they had the right software loaded. So
yes, absolutely. It's increased our
assortment, not decreased it.
Ryan says, although ordering directly from the manufacturer is
becoming more and more common,
he doesn't think it poses any real threat to retailers who still sell
computers the old fashioned way.
But Dell thinks, in the near future, all manufacturers will adopt
the direct sales model, in spite of the
difficulties that poses for them.

Essentially to do that, they have to go into competition with the
people who sell virtually all their
products today. So it's a fairly monumental transition for them.
But still, they're headed down that
path.
So we're focused on how we can take our business model to the
next level using things like internet,
product line expansion, and driving further efficiencies through
our business.
Dell predicts this new way of manufacturing may well eliminate
the middleman retailer once and for
all.
Adobe Captivate Tuesday, December 06, 2016
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