Chapter 13 Review

Chapter 13 Review - 68 Part 5 Distribution Decisions...

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68 Part 5 Distribution Decisions CHAPTER 13 MARKETING CHANNELS AND SUPPLY CHAIN MANAGEMENT CHAPTER OVERVIEW It’s wonderful to have a great new product, and a great promotion to get the word out, but you need a way to get the product into the customer’s hands. Distribution—moving goods and services from producers to customers—is the second marketing mix variable and a key element in the big picture of the marketing mix. Chapter 13 is the first of two chapters devoted to distribution strategy. Even if you have that great product design and a creative promotion that gets consumers interested in it, all that effort is wasted if consumers have no way to actually buy the product when and where they want it. The chapter explains that distribution strategy has two critical elements: marketing channels (also called distribution channels) and logistics and supply-chain management. The text clarifies the differences among these elements. A marketing channel is an organized system of marketing institutions that allow for the physical flow of goods and services from producer to purchaser. By contrast, logistics is the process that coordinates the flow of information, goods, and services among everyone involved in a marketing channel. Physical distribution, a key aspect of logistics and a much broader concept beyond just transportation, refers to the efficient movement of finished goods from the end of the production line to the consumer. And supply-chain management controls purchasing, processing, and delivery as raw materials are transformed into products. All of these elements work together to provide ultimate users with convenient ways for obtaining the goods and services they desire. Overall Chapter 13 covers the activities, decisions, and marketing intermediaries involved in managing marketing channels and logistics. Chapter 14 then looks at the other players in the marketing channel—the wholesalers, retailers, and direct marketers. OUTLINE Opening Vignette and Evolution of a Brand Zappos.com Zips Shoes to Your Door. What kind of marketing channels does Nick Swinmurn use for his online shoe business? How do they differ from those of a brick- and-mortar store? Chapter Objective 1: Describe the types of marketing channels and the roles they play in marketing strategy. Key Terms: distribution, marketing channel, distribution channel, logistics, supply-chain management, physical distribution, sorting, marketing intermediary or middleman, retailer, wholesaler, direct channel, direct selling, party planners, industrial distributors, manufacturers’ representative, merchant wholesaler, dual distribution, reverse channel Basic PowerPoint: 1-7 Expanded PowerPoint: 1-9 1. Marketing channels and supply chain management
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69 Part 5 Distribution Decisions Figure 13.1 Alternative Marketing Channels . Compare channels for consumer goods, business goods, and services. Which involves the
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Chapter 13 Review - 68 Part 5 Distribution Decisions...

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