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Chapter 12 - slide 1
Chapter Twelve
Marketing Channels: Delivering
Customer Value
Supply Chains and the
Value Delivery Network
Upstream partners include raw material
suppliers, components, parts, information,
finances, and expertise to create a
Supply Chain Partners
Chapter 12 - slide 2Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
finances, and expertise to create a
product or service
Downstream partners include the marketing
channels or distribution channels that
look toward the customer
Supply Chains and the
Value Delivery Network
Supply chain “make and sell” view includes the
firm’s raw materials, productive inputs, and
factory capacity
Supply Chain Views
Chapter 12 - slide 3Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Demand chain “sense and respond” view suggests
that planning starts with the needs of the target
customer, and the firm responds to these needs
by organizing a chain of resources and activities
with the goal of creating customer value
Supply Chains and the
Value Delivery Network
Value delivery network is
the firm’s suppliers,
distributors, and
Value Delivery Network
Chapter 12 - slide 4Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
distributors, and
ultimately customers
who partner with each
other to improve the
performance of the
entire system
Channel Behavior and Organization
Marketing channel consists of firms that
have partnered for their common good
with each member playing a specialized
role
Channel Behavior
Chapter 12 - slide 5Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
role
The Nature and Importance of
Marketing Channels
How Channel Members Add Value
Chapter 12 - slide 6Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Nature and Importance of
Marketing Channels
Number of Channel Levels
Chapter 12 - slide 7Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Channel Behavior and
Organization
Multichannel Distribution System
Chapter 12 - slide 8Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Channel Behavior and Organization
Disintermediation occurs when product or
service producers cut out intermediaries
and go directly to final buyers, or when
Changing Channel Organization
Chapter 12 - slide 9Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
and go directly to final buyers, or when
radically new types of channel
intermediaries displace traditional ones
Channel Design Decisions
Identifying Major Alternatives
Intensive distribution
• Candy and toothpaste
Chapter 12 - slide 10Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Exclusive distribution
• Luxury automobiles and prestige
clothing
Selective distribution
• Television and home appliance
Channel Design Decisions
Each alternative should
be evaluated against:
Evaluating the Major Alternatives
Chapter 12 - slide 11Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
be evaluated against:
– Economic criteria
– Control
– Adaptive criteria
Public Policy and Distribution
Decisions
Exclusive distribution is when the seller allows only
certain outlets to carry its products
Exclusive dealing is when the seller requires that
the sellers not handle competitor’s products
Chapter 12 - slide 12Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
the sellers not handle competitor’s products
Exclusive territorial agreements are where
producer or seller limit territory
Tying agreements are agreements where the dealer
must take most or all of the line
Marketing Logistics and
Supply Chain Management
Marketing logistics (physical distribution)
involves planning, implementing, and
controlling the physical flow of goods,
services, and related information from
Nature and Importance of Marketing
Logistics
Chapter 12 - slide 13Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
services, and related information from
points of origin to points of
consumption to meet consumer
requirements at a profit
Marketing Logistics and
Supply Chain Management
Nature and Importance of Marketing Logistics
Chapter 12 - slide 14Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Marketing Logistics and
Supply Chain Management
Supply chain management is the process of
managing upstream and downstream value-
Nature and Importance of Marketing Logistics
Chapter 12 - slide 15Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
managing upstream and downstream value-
added flows of materials, final goods, and
related information among suppliers, the
company, resellers, and final consumers

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12 [compatibility mode]

  • 1. Chapter 12 - slide 1 Chapter Twelve Marketing Channels: Delivering Customer Value
  • 2. Supply Chains and the Value Delivery Network Upstream partners include raw material suppliers, components, parts, information, finances, and expertise to create a Supply Chain Partners Chapter 12 - slide 2Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall finances, and expertise to create a product or service Downstream partners include the marketing channels or distribution channels that look toward the customer
  • 3. Supply Chains and the Value Delivery Network Supply chain “make and sell” view includes the firm’s raw materials, productive inputs, and factory capacity Supply Chain Views Chapter 12 - slide 3Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Demand chain “sense and respond” view suggests that planning starts with the needs of the target customer, and the firm responds to these needs by organizing a chain of resources and activities with the goal of creating customer value
  • 4. Supply Chains and the Value Delivery Network Value delivery network is the firm’s suppliers, distributors, and Value Delivery Network Chapter 12 - slide 4Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall distributors, and ultimately customers who partner with each other to improve the performance of the entire system
  • 5. Channel Behavior and Organization Marketing channel consists of firms that have partnered for their common good with each member playing a specialized role Channel Behavior Chapter 12 - slide 5Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall role
  • 6. The Nature and Importance of Marketing Channels How Channel Members Add Value Chapter 12 - slide 6Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • 7. The Nature and Importance of Marketing Channels Number of Channel Levels Chapter 12 - slide 7Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • 8. Channel Behavior and Organization Multichannel Distribution System Chapter 12 - slide 8Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • 9. Channel Behavior and Organization Disintermediation occurs when product or service producers cut out intermediaries and go directly to final buyers, or when Changing Channel Organization Chapter 12 - slide 9Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall and go directly to final buyers, or when radically new types of channel intermediaries displace traditional ones
  • 10. Channel Design Decisions Identifying Major Alternatives Intensive distribution • Candy and toothpaste Chapter 12 - slide 10Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Exclusive distribution • Luxury automobiles and prestige clothing Selective distribution • Television and home appliance
  • 11. Channel Design Decisions Each alternative should be evaluated against: Evaluating the Major Alternatives Chapter 12 - slide 11Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall be evaluated against: – Economic criteria – Control – Adaptive criteria
  • 12. Public Policy and Distribution Decisions Exclusive distribution is when the seller allows only certain outlets to carry its products Exclusive dealing is when the seller requires that the sellers not handle competitor’s products Chapter 12 - slide 12Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall the sellers not handle competitor’s products Exclusive territorial agreements are where producer or seller limit territory Tying agreements are agreements where the dealer must take most or all of the line
  • 13. Marketing Logistics and Supply Chain Management Marketing logistics (physical distribution) involves planning, implementing, and controlling the physical flow of goods, services, and related information from Nature and Importance of Marketing Logistics Chapter 12 - slide 13Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall services, and related information from points of origin to points of consumption to meet consumer requirements at a profit
  • 14. Marketing Logistics and Supply Chain Management Nature and Importance of Marketing Logistics Chapter 12 - slide 14Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • 15. Marketing Logistics and Supply Chain Management Supply chain management is the process of managing upstream and downstream value- Nature and Importance of Marketing Logistics Chapter 12 - slide 15Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall managing upstream and downstream value- added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers