Marketing Channels Ch 13 14 15 16

Marketing Channels Ch 13 14 15 16 - Last test: Chapters 13,...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Last test: Chapters 13, 14, 15, 16 Ch. 13: Logistics and Channel Management p.385 Dot-com or dot-bomb—the internet because of numerous cases of companies going bankrupt after running into the logistical challenges presented by online sales Ex: pets.com and Webvan Group, Inc (early 2001) Logistics also often refered to as physical distribution (PD), has many definitions, but most share Kotler’s definition—“planning, implementing, and controlling the physical flow of materials and final goods from point of origin to points of use to meet customer’s needs at a profit. Supply chain management describes the logical systems that emphasize close cooperation and comprehensive interorganizational management to integrate the logistical operations of the different firms in the channel. No matter the exact term— The underlying principle emphasized throughout this text is the building of strong cooperation among channel members through effective interorganizing management. See table 13.1 – p. 387 The role of logistics Even the most carefully designed and managed marketing channel must rely on logistics to actually make products available to customers. Third-party logistics providers , multibillion dollar industry, these firms specialize in performing most or all of the logistical tasks that manufacturers or other channel members would normally perform themselves Supermarket, grocery industry launched a massive effort to improve the logistics of food distribution from farm to consumer: efficient consumer response (ECR) Logistics Systems, Costs, and Components Systems concept for dealing with logistical problems, that is, more attention was paid to the various factors involved in the logistical process and the interrelationships among them. Total cost approach: logical extension of the systems concept because it addresses all the costs of logistics together, rather than he seoaoare costs of individual components, and seeks to minimize the total cost. - Transportation - Most fundamental and obviously necessary component of any logistics system, for most products must be physically moved from one location to another
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
- Chosing the most optimal mode of transportation - MileMaker (pg. 390) o Industry standard rating ad routing solutions - materials handling o how to make the best use of labor when receiving, handling and shipping products o cross-docking or flow-through distribution: merchandise is immediately moved across the receiving dock to other trucks for immediate delivery to stores. Eliminates the need to pick up the products at a later time—products are moved straight from shipping into receiving - order processing p. 391 o order cycle time – the time between when an order is places and when it is received by the customer - inventory control o the firm’s attempt to hold the lowest level of inventory that will still enable it to meet customer demand o o inventory carrying costs can average up to approximately 25 percent of the inventory value per year
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 10

Marketing Channels Ch 13 14 15 16 - Last test: Chapters 13,...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online