& Distribution Supply Chain
Professor Downs
Marketing Functions in Distribution Channel
Pricing Promotion Packaging Displaying Inventory control Customer service Credit Exchanges
Degree of Distribution
Exclusive distribution Selective distribution Intensive distribution
Rolls Royce, Rolex, Brioni, Manolo Blahnik,Cartier BMW, Mercedes, Movado, Armani, 7 Jeans, Juicy Couture, Louis Vitton purses Chevrolet, Guess?, soft drinks, cigarettes, milk, toothpaste
Direct vs. Indirect Distribution
Direct (manufacturer >>> consumer)
Control Incur cost Expertise Deal with all problems Perform all marketing functions
More localized responsiveness to comsumers
Direct vs. Indirect Distribution
Indirect (manufacturer > wholesaler > retailer >
consumer)
Lack of control Less expertise Focus on what you do best Others perform marketing functions Ex: Organic baking mixes sold at Publix
On the Street
Product placement Shelf facings Category management Planogram
Supply Chain Management
Objectives
Minimize costs in supply chain Maximize in inefficiency supply chain Maximize interoperability in supply chain Reduce "designtomarket" time Optimize profit
Supply Chain Management
"Frontend" of marketing Involves supply chain players working together team approach
Requires a supply chain captain
GM, Daimler Chrysler, Ford vs. Honda, Nissan, Toyota Wal*Mart vs Target
Supply Chain Captain
Financial power Access to consumers Consumer loyalty/demand
Supply Chain Captain
Bad captains Good captains
Toyota Honda Target Big 3 Walmart
Supply Chain Management
Requires
Design standards Logistics standards Environmental standards Shipping standards Labeling standards
Retail Shops 19932003
Chain drug stores Fast food restaurants Discount stores Beauty shops Taverns & bars Sporting good stores Gas stations Independent food stores Independent drug stores Barber shops Home centers Variety stores $26,280 139,720 9,000 214,100 65,900 36,840 95,540 72,010 25,620 37,490 8,470 6,710 +29% +15% + 9% + 5% 0% 3% 7% 8% 19% 20% 21% 33%