This document discusses marketing channels and logistics/supply chain management. It defines marketing channels as the system that promotes the flow of goods from producer to consumer, including ownership transfers. There are different types of channels like direct, wholesale, and dual distribution. Channel strategy decisions include determining distribution intensity like intensive, selective, or exclusive distribution. Logistics and supply chain management coordinates information and physical flow among channel members. It includes transportation, warehousing, inventory control and other physical distribution functions.

1. Marketing Channels, Logistics & Supply Chain ManagementIntro to MarketingChapter 13

2. Marketing Channels(Distribution Channels)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 channelMoving goods and services from producers to customers

3. Types of Channels - Producer – Consumerdirect channel

4. by-passes marketing intermediaries

5. component of direct selling - Producer-Retailer-Consumer - Producer-Wholesaler-Retailer-Consumertraditional channel - Producer-Agent-Wholesaler-Retailer-Consumer May substitute Consumer for Business User

6. Types of ChannelsProducerConsumerConsumerProducerRetailerProducerRetailerWholesalerConsumerConsumerProducerRetailerWholesalerAgent/Broker

7. Dual DistributionMovement of products through two or more distribution channels to reach the same target marketIBM: An Example of a Firm That Uses Dual Distribution to Sell Its Personal Computers

8. Reverse Channels Channels designed to return goods to their producers.

9. Channel Strategy Decisions

10. Determining Distribution IntensityIntensive Distribution - used for convenience goods - saturation coverage of the marketSelective Distribution - a firm chooses only a limited number of retailer in a market area to handle its product. - cooperative advertising is frequently usedExclusive Distribution - specialty goods - one wholesaler or retailer in a geographic region.

11. Channel Management & LeadershipHistorically, 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.

12. Logistics And Supply Chain ManagementProcess of coordinating the flow of information, goods, and services among members of the distribution channel.Physical DistributionActivities to achieve efficient movement of finished goods from the end of the production line to the consumer. Transportation is part of it.

13. RFID – Radio Frequency IdentificationTechnology that uses a tiny chip with identification.Information can be read from a distance by a radio frequency scanner.

14. Physical DistributionIncludes: transportation, warehousing, materials handling, protective packaging, inventory control, order processing, and customer service.

15. Customer Service StandardsThe quality of service that the firm provides its customers.It’s a powerful tool for influencing buyers perception of overall quality.

16. TransportationTransportation costs are the largest expense item in physical distribution and is a key in customer service.40%-60% of distribution cost of businessWhat has Deregulation done to transportation?

17. Classes for CarriersAll forms of transportation.Ex: trucksCommon carriers are for-hire carriers who serve the general public.Contract carriers contract to work for only specific customers and in only one industry.Private carriers are not-for-hire carriers who transport for only one specific firm.

18. Major Transportation ModesRailroad – most frequently used & most efficient for bulk commodities over long distances.Motor carriers – fast and flexibleWater carriers – slow but inexpensivePipelines – low-maintenance, dependable, and efficientAir freight – fastest but very expensiveIntermodal – piggyback, fishyback, birdyback

19. WarehousingTwo types- Storage and DistributionAutomated warehousesInventory control systems – some firms utilize just-in-time managementOrder processing is another physical distribution functionProtective packaging and materials handling.