exam chapter 12

chapter 12
marketing channels
SUPPLY CHAINS AND THE VALUE DELIVERY NETWORK
value delivery network
network composed of the company, suppliers, distributors, and customers who partner with each other to improve performance of the entire system in delivering customer value
NATURE AND IMPORTANCE OF MARKETING CHANNELS
marketing channel (distribution channel)
set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user
how channel members add value
how channel members add value
how a distributor reduces the number of channel transactions
how channel members add value pt 2
information
promotion
contact
matching
negotiation
physical distribution
financing
risk taking
number of channel levels-chart
consumer and business marketing channels
direct/indirect channels-chart
different
channel level
layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer
direct marketing channel
no intermediaries
indirect marketing channel
contains one or more intermediary levels
CHANNEL BEHAVIOR ORGANIZATION
how channel members interact and organize to perform work
channel behavior
channel conflict: disagreements among marketing channel members on goals, roles, and rewards, who should do what and for what rewards
-horizontal vs vertical
horizontal conflict
firms at same level of channel
vertical conflict
different levels of the same channel
vertical marketing systems
channel structure in which producers, wholesalers, and retailers act as a unified system. one channel member owns the others, has contracts with them, or has so much power that they all cooperate
conventional distribution channel
conventional distribution channel
channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, perhaps even at the expense of profits for system as a whole
corporate VMS
combines successive stages of production and distribution under single ownership – channel leadership is established through common ownership
contractual VMS
independent firms at different levels of production and distribution join together through cocntracts
franchise organization
contractual vms in which a channel member, called a franchiser, links several stages in the production-distribution process
Administered VMS
coordinates successive stages of production and distribution through the size and power of one of the parties
horizontal marketing systems
channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity
multi-channel distribution system
multi-channel distribution system
distribution system in which a single firm sets up two or more marketing channels to reach on e or more customer segments
changing channel organization
disintermediation- the cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries
CHANNEL DESIGN DECISIONS
analyzing consumer needs
setting channel objectives
identifying major alternatives
evaluating major alternatives
designing international distribution channels
marketing channel design
designing effective marketing channels by analyzing customer needs, setting channel objectives, identifying major channel alternatives, and evaluating those alternatives
identifying major alternatives
types of intermediaries
number of marketing intermediaries
responsibilities of channel members
number of marketing intermediaries
intensive distribution
exclusive distribution
selective distribution
intensive distribution
stocking the product in as many outlets as possible
exclusive distribution
giving a limited number of dealers the exclusive right to distribute the company’s products in their territories
selective distribution
the use of more than one but fewer than all of the intermediaries who are willing to carry the company’s products
CHANNEL MANAGEMENT DECISIONS
marketing channel management: selecting, managing, and motivating individual channel members and evaluating their performance over time
PUBLIC POLICY AND DISTRIBUTION DECISIONS
exclusive distribution
exclusive dealing
exclusive territorial agreements
full-line forcing
tying agreements
MARKETING LOGISTICS AND SUPPLY CHAIN MGMT
nature and importance of marketing logistics
goals of logistics system
major logistics functions
integrated logistics mgmt
nature and importance of marketing logistics
marketing logistics
supply chain mgmt
marketing logistics (physical distribution)
planning, implementing, and controlling the physical flow of materials, final goods, and related info from points of origin to points of consumption to meet customer requirements at a profit
supply chain management
supply chain management
managing upstream and downstream value-added flows of materials, final goods, and related info among suppliers, the company, resellers, and final consumers
major logistics functions
warehousing
inventory mgmt
transportation
logistics info mgmt
warehousing
store goods before sold
(warehousing) — Distribution center
large, highly automated warehouse designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible
transportation
trucks, railroads, water carriers, pipelines, air, internet, intermodal
intermodal transportation
combining two or more modes of transportation
integrated logistics mgmt
logistics concept that emphasizes teamwork – both inside company and among all marketing channel orgs – to maximize the performance of the entire distribution system
-cross-functional teamwork inside company
-building logistics partnerships
-third-party logistics
third-party logistics (3PL) providers
independent logistics provider that performs any or all of the functions required to get a client’s product to market
exclusive distribution