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Unformatted text preview: In-Class Discussion Content for Chapters 15 and 16“Managing Marketing Channels & Supply Chains” –Most of us may work in a knowledge economy, but Madonna was right. We all live in a material world. (and how does all that stuff get to your homes, garages and closets?) •What comes to mind first when you think of the word “channels”? •Discussing “supply chains” and “marketing channels.” *–Students should understand and appreciate the fact that in many ways these descriptive terms are synonymous with one another. And yet in one important way, the terms differ from one another. Description of “Marketing Channels” - •A group of independent organizations involved in the process of making a product or service available for use or consumption by consumers or a business organization. •Examples of such organizations might include manufacturers, wholesalers, agents, retailers and ultimately the customer him/her/itself. –Classic example: Manufacturer – wholesaler – retailer – customer (Pharmaceuticals)–Classic example: Manufacturer – wholesaler – agent – retailer – customer - (Marble Counter Tops for a Kitchen)•Add in suppliers (or sources) to the marketing channel before manufacturers (i.e., a marketing channel consisting of a source firm, manufacturers, wholesalers, agents, retailers and the customer), and you have a supply chain (or valuedelivery network.)-Source firms (suppliers and manufacturers, for example, in China) – focal manufacturers or marketing firm, i.e., Apple – wholesalers and other distributors – retailers (which could include Apple stores – customers –) •Note that Apple, like almost all firms, engages in many, perhaps 100s, of channels and supply chains. •No firm can exist or operate as an island, without contact to others on the mainlando“No man is an island” – John Donne 1•Think in terms of cotton grown in a field in West Texas and a Hanes T-Shirt sold in a Wal-Mart in Nashua, New Hampshire. –How does that cotton get from that field, in raw material form, to some finished product that yields a particular kind of value to the end user consumer in New Hampshire? (“Just wait until we get our Hanes on you.”) Are Michael Jordan and Kevin Bacon and Cuba Gooding Jr. part of that supply chain? Are these two gentlemen part of the marketing channel? One key value associated with Marketing Channels: –Producers make narrow assortments of products in large quantities (i.e., Asian firms make 1000s of I-Pods, I-Phones and I-Pads for Apple [BTW: Apple makes nothing for itself]). But buyers want and need broad assortments of products in small quantities (i.e., one I-Pod, one I-Phone, one I-PAD, one automobile, 30 blood pressure medications). ***–Marketing channels transform the mass assortments made by producers into the “one-sie” assortment wanted by buyers....
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This note was uploaded on 03/12/2011 for the course MKTG 3650 taught by Professor Thompson during the Spring '08 term at North Texas.
- Spring '08