1、Marketing Channels and Supply Chain Management,Chapter 13,13 - 1,Objectives,Know why companies use distribution channels and understand the functions that these channels perform. Learn how channel members interact and how they organize to perform the work of the channel. Know the major channel alter
2、natives that are open to a company.,13 - 2,Objectives,Comprehend how companies select, motivate, and evaluate channel members. Understand the nature and importance of marketing logistics and integrated supply chain management.,13 - 3,Dominates worlds markets for heavy construction and mining equipme
3、nt. Independent dealers are key to success Dealer network is linked via computers,Caterpillar stresses dealer profitability, extraordinary dealer support, personal relationships, dealer performance and full, honest, and frequent communications,Caterpillar,Case Study,13 - 4,1920,1960,1970,1980,1990,2
4、000,Mass Production,Toyota Production System,JIT Production System,Global Logistics Production System,Zero- Inventory Production System,Artificial Production,Cost,Quality,Speed,Flexibility,Innovation,Production model evolution,13 - 5,Traditional View: Logistics in the Manufacturing Firm,Profit 4% Lo
5、gistics Cost 21% Marketing Cost 27% Manufacturing Cost 48%,Profit,Logistics Cost,Marketing Cost,Manufacturing Cost,13 - 6,Supply Chain Management: The Magnitude in the Traditional View,A typical box of cereal spends 104 days from factory to sale A typical car spends 15 days from factory to dealershi
6、p P&G estimates it saved retail customers $65 million by collaboration resulting in a better match of supply and demand,13 - 7,Definition,Value Delivery Network The network made up of the company, suppliers, distributors, and ultimately customers who “partner” with each other to improve the performa
7、nce of the entire system.,13 - 8,Forecast Demand,Order,Order,Order,Order,Produce to forecast,Ship,Ship,Buffer betweenproduction anddemand variation,+ 4 weeks,Forecast Demand,Ship,Ship,Change requirementChange due dateForecast error,Produce to forecastProduce to order with lead time,Supplier,Factory,
8、Warehouse,Selling Entity,Customer,Typical Supply Chain,13 - 9,What is a Supply Chain?,Customer wants detergent and goes to Jewel,Jewel Supermarket,Jewel or third party,P&G or other manufacturer,Plastic Producer,Chemical manufacturer (e.g. Oil Company),Tenneco Packaging,Paper Manufacturer,Timber Indu
9、stry,Chemical manufacturer (e.g. Oil Company),13 - 10,Channel choices affect other decisions in the marketing mix Pricing, Marketing communications A strong distribution system can be a competitive advantage Channel decisions involve long-term commitments to other firms,Nature & Importance of Market
10、ing Channels,13 - 11,How Channel Members Add Value Intermediaries require fewer contacts to move the product to the final purchaser. Intermediaries help match product assortment demand with supply. Intermediaries help bridge major time, place, and possession gaps that separate products from those wh
11、o would use them.,Nature & Importance of Marketing Channels,13 - 12,Flows in a Supply Chain,Customer,Information,Product,Funds,Supply Chain,13 - 13,Ordering,Payments,Communication,Transfer,Negotiation,Financing,Risk Taking,Physical Distribution,Information,Distribution Channel Functions,13 - 14,Chan
12、nel Members Are Connected Via A Variety of Flows,Nature & Importance of Marketing Channels,Physical Flow Payment Flow,Information Flow Promotion Flow,Flow of Ownership,13 - 15,The Objective of a Supply Chain,Maximize overall SC (Supply Chain) value created Supply chain value: Final Product Value Tot
13、al Supply Chain Cost SC Value = Price of Widget Cost of all Phases in SCSC Value = Profit of SC,13 - 16,The Objective of a Supply Chain,Dell receives $2000 from a customer Supply Chain Costs (information, storage, transportation, components, assembly, etc.) Supply Chain Profit = $2000 - Supply Chain
14、 Costs Supply Chain Profit is shared across all stages in SC Supply Chain Success is measured by total supply chain profitability, not profits at an individual stage,13 - 17,Number of Channel Levels The number of intermediary levels indicates the length of a marketing channel. Producers lose more co
15、ntrol and face greater channel complexity as additional channel levels are added.,Nature & Importance of Marketing Channels,13 - 18,How a Distributor Reduces the Number of Channel Transactions,= Customer,= Manufacturer,13 - 19,How a Distributor Reduces the Number of Channel Transactions,= Distributo
16、r,= Customer,= Manufacturer,13 - 20,Consumer Marketing Channels,13 - 21,Industrial Marketing Channels,13 - 22,Channel Conflict Occurs when channel members disagree on roles, activities, or rewards. Types of Conflict:Horizontal conflict: occurs among firms at the same channel levelVertical conflict:
17、occurs among firms at different channel levels,Channel Behavior and Organization,13 - 23,Vertical Marketing Systems Corporate VMS Contractual VMSManufacturer-sponsored retailer franchise systemManufacturer-sponsored wholesaler franchise system Service-firm-sponsored retailer franchise system Adminis
18、tered VMS,Channel Behavior and Organization,13 - 24,Conventional Distribution Channel vs. Vertical Marketing Systems,Vertical marketing channel,Manufacturer,Retailer,Conventional marketing channel,Manufacturer,Wholesaler,13 - 25,Multichannel Distribution Systems Also called hybrid marketing channels
19、 Occurs when a firm uses two or more marketing channels Hybrid marketing has many advantages,Channel Behavior and Organization,13 - 26,Step 1: Analyzing Consumer Needs Cost and feasibility of meeting needs must be considered Step 2: Setting Channel Objectives Set channel objectives in terms of targe
20、ted level of customer service Many factors influence channel objectives,Channel Design Decisions,13 - 27,Step 3: Identifying Major Alternatives Types of intermediariesCompany sales force, manufacturers agency, industrial distributors Number of marketing intermediariesIntensive Selective exclusive di
21、stribution Responsibilities of channel members,Channel Design Decisions,13 - 28,Step 4: Evaluating Major Alternatives Economic criteria Control issues Adaptive criteria,Channel Design Decisions,13 - 29,Designing Distribution in Other Countries International marketers usually adapt their channel stra
22、tegies to structures that exist within different Asian countries Key challenges:May be complex or hard to penetrateMay be scattered, inefficient, or totally lacking,Channel Design Decisions,13 - 30,Selecting Channel Members Identify characteristics that distinguish the best channel members Managing
23、and Motivating Channel Members Partner relationship management (PRM) is key Evaluating Channel Members Performance should be checked against standards Channel members should be rewarded or replaced as dictated by performance,Channel Management Decisions,13 - 31,Marketing Logistics Outbound distribut
24、ion Inbound distribution Reverse distribution Involves the entire supply chain management system,Marketing Logistics and Supply Chain Management,13 - 32,Why Greater Emphasis is Being Placed on Logistics: Offers firms a competitive advantage Can yield cost savings Greater product variety requires imp
25、roved logistics Improvements in distribution efficiency are possible due to information technology,Marketing Logistics and Supply Chain Management,13 - 33,Goals of the Logistics System No system can both maximize customer service and minimize costs. Firms must first weigh the benefits of higher serv
26、ice against the costs. State goals in terms of a targeted level of customer service at the least cost.,Marketing Logistics and Supply Chain Management,13 - 34,Major Logistics Functions Warehousing Inventory Management Transportation Logistics Information Management,Marketing Logistics and Supply Cha
27、in Management,13 - 35,Transportation Carrier Options,Marketing Logistics and Supply Chain Management,Truck Rail Water,Pipeline Air Internet,Intermodal transportation is becoming more common,13 - 36,Integrated Logistics Management Cross-functional teamwork inside the company is critical Logistics partnerships are also built through shared projects Outsourcing of logistics firms to third-party firms is becoming more common,Marketing Logistics and Supply Chain Management,
