12-Marketing+Channels

12-Marketing+Channels - Marketing Channels: Delivering...

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Marketing Channels: Delivering Customer Value *Powerpoints refined from Pearson 1
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Objectives 1. Supply Chains and the Value Delivery Network 2. The Nature and Importance of Marketing Channels 3. Channel Behavior and Organization 4. Channel Design Decisions 5. Channel Management Decisions 6. Public Policy and Distribution Decisions 7. Marketing Logistics and Supply Chain Management 2
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Supply chain partners Upstream partners include raw material suppliers, components, parts, information, finances, and expertise to create a product or service Downstream partners include the marketing channels or distribution channels that look toward the customer 3
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Supply chain views Supply Chain Views Supply chain “make and sell” view includes the firm’s raw materials, productive inputs, and factory capacity 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
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Value delivery network The value delivery network is the firm’s suppliers, distributors, and ultimately customers who partner with each other to improve the performance of the entire system 5
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Marketing channel Marketing channel is a set of independent organizations that help make a product or service available for use or consumption by the consumer or business users 6
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How channel members add value? Channel members add value by bridging the major time, place, and possession gaps that separate goods and services from those who would use them 7
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Producers Producers use intermediaries because they create greater efficiency in making goods available to target markets. 8
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Intermediaries Intermediaries offer the firm more than it can achieve on its own through their contacts, experience, specialization, and scale of operations 9
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Role of intermediaries From an economic view, intermediaries transform the assortment of products into assortments wanted by consumers 10
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How channel members add value? (1) Information refers to the gathering and distributing research and intelligence information about actors and forces in the marketing environment needed for planning and aiding exchange Promotion refers to the development and spreading persuasive communications about an offer Contacts refers to finding and communicating with prospective buyers 11
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How channel members add value? (2) Matching refers to shaping and fitting the offer to the buyer’s needs, including activities such as manufacturing, grading, assembling, and packaging Negotiation refers to reaching an agreement on price and other terms of the offer so that ownership or possession can be transferred 12
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How channel members add value? (3) Physical distribution refers to transporting and storing goods Financing refers to acquiring and using funds to cover the costs or carrying out the channel work Risk taking refers to assuming the risks of carrying out the channel work 13
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This note was uploaded on 12/21/2010 for the course BUS 233 taught by Professor Millissacheung during the Spring '10 term at Hong Kong Shue Yan.

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12-Marketing+Channels - Marketing Channels: Delivering...

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