kotler13_exs - Marketing Channels and Supply Chain...

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Unformatted text preview: Marketing Channels and Supply Chain Management Management Cha pte r 13 Objectives • Know why compa nie s us e dis tribution Know c ha nne ls a nd unde rs ta nd the functions tha t the s e cha nne ls pe rform. tha • Le a rn how cha nne l me mbe rs inte ra ct Le a nd how the y orga nize to pe rform the work of the cha nne l. work • Know the ma jor cha nne l a lte rna tive s Know tha t a re ope n to a compa ny. tha Objectives • C ompre he nd how compa nie s s e le ct, Compre m otiva te , a nd e va lua te cha nne l me mbe rs . me • Unde rs ta nd the na ture a nd Unde importa nce of ma rke ting logis tics a nd inte gra te d s upply cha in ma na ge me nt. ma Case Study Cate rpillar Cate • Do minate s wo rld’s • Cate rpillar s tre s s e s Do Cate m arke ts fo r he avy d e ale r pro fitability, c o ns truc tio n and e xtrao rdinary de ale r mining e quipme nt. s uppo rt, pe rs o nal m ining re latio ns hips , de ale r • Inde pe nde nt Inde p e rfo rmanc e and d e ale rs are ke y to full, ho ne s t, and s uc c e s s fre que nt • De ale r ne two rk is De c o mmunic atio ns linke d via Definition • Va lue De live ry Ne twork The ne twork ma de up of the The c ompa ny, s upplie rs , dis tributors , a nd u ltima te ly cus tome rs who “pa rtne r” with e a ch othe r to improve the pe rforma nce of the e ntire s ys te m. pe Nature & Importance of Marketing Channels • C ha nne l choice s a ffe ct othe r de cis ions Cha in the ma rke ting mix in P ricing, Ma rke ting communica tions • A s trong dis tribution s ys te m ca n be a compe titive a dva nta ge c ompe • C ha nne l de cis ions involve long-te rm Cha commitme nts to othe r firms c ommitme Nature & Importance of Marketing Channels • How Cha nne l Me mbe rs Add Va lue Inte rme dia rie s re quire fe we r conta cts to Inte move the product to the fina l purcha s e r. m ove Inte rme dia rie s he lp ma tch product Inte a s s ortme nt de ma nd with s upply. Inte rme dia rie s he lp bridge ma jor time , Inte p la ce , a nd pos s e s s ion ga ps tha t s e pa ra te products from thos e who would us e the m. p roducts Nature & Importance of Marketing Channels Ke y Func tio ns Pe rfo rme d by Ke Channe l Me mbe rs • Informa tion • P romotion • Ne gotia tion • P hys ica l Dis tribution • Conta ct • Ma tching • Fina ncing • Ris k ta king Nature & Importance of Marketing Channels • Numbe r of Cha nne l Le ve ls The numbe r of inte rme dia ry le ve ls The indica te s the le ngth of a ma rke ting cha nne l. c ha Dire ct Channe ls Dire Indire ct Channe ls Indire P roduce rs los e more control a nd fa ce g re a te r cha nne l comple xity a s a dditiona l cha nne l le ve ls a re a dde d. c ha Nature & Importance of Marketing Channels Channe l Me mbe rs Are Co nne c te d Via A Varie ty o f Flo ws Via • P hys ica l Flow • P a yme nt Flow • Informa tion Flow • P romotion Flow • Flow of Owne rs hip F low Channel Behavior and Organization • Cha nne l Conflict O ccurs whe n cha nne l me mbe rs dis a gre e Occurs on role s , a ctivitie s , or re wa rds . on Type s of Conflict: Horiz ontal conflict: o ccurs am ong firm s at the Horiz s am e channe l le ve l Ve rtical conflict: o ccurs am ong firm s at Ve diffe re nt channe l le ve ls d iffe Channel Behavior and Organization • Ve rtica l Ma rke ting S ys te ms Corpora te VMS Contra ctua l VMS Manufacture r-s pons ore d re taile r franchis e s ys te m Manufacture r-s pons ore d whole s ale r franchis e s ys te m S e rvice -firm -s pons ore d re taile r franchis e s ys te m Adminis te re d VMS Channel Behavior and Organization • Multicha nne l Dis tribution S ys te ms Als o ca lle d hybrid ma rke ting cha nne ls O ccurs whe n a firm us e s two or more Occurs m a rke ting cha nne ls Hybrid ma rke ting ha s ma ny a dva nta ge s • Cha nging Cha nne l Orga niza tion Dis inte rme dia tion Channel Design Decisions • S te p 1: Ana lyzing Cons ume r Ne e ds C os t a nd fe a s ibility of me e ting ne e ds Cos m us t be cons ide re d • S te p 2: S e tting Cha nne l Obje ctive s S e t cha nne l obje ctive s in te rms of ta rge te d le ve l of cus tome r s e rvice ta Ma ny fa ctors influe nce cha nne l obje ctive s Channel Design Decisions • S te p 3: Ide ntifying Ma jor Alte rna tive s Type s of inte rme dia rie s C om pany s ale s force , m anufacture r’s age ncy, indus trial dis tributors a ge Numbe r of ma rke ting inte rme dia rie s Inte ns ive , s e le ctive , and e xclus ive dis tribution d is Re s pons ibilitie s of cha nne l me mbe rs Channel Design Decisions • S te p 4: Eva lua ting Ma jor Alte rna tive s E va Economic crite ria Control is s ue s Ada ptive crite ria Channel Design Decisions • De s igning Inte rna tiona l Dis tribution De Cha nne ls C ha G loba l ma rke te rs us ua lly a da pt the ir Globa c ha nne l s tra te gie s to s tructure s tha t e xis t within fore ign countrie s within Ke y cha lle nge s : May be com ple x or hard to pe ne trate May May be s catte re d, ine fficie nt, or totally lacking lacking Channel Management Decisions • S e le cting Cha nne l Me mbe rs Ide ntify cha ra cte ris tics tha t dis tinguis h the be s t Ide cha nne l me mbe rs c ha • Ma na ging a nd Motiva ting Cha nne l Me mbe rs P a rtne r re la tions hip ma na ge me nt (P RM) is ke y • Eva lua ting Cha nne l Me mbe rs P e rforma nce s hould be che cke d a ga ins t s ta nda rds C ha nne l me mbe rs s hould be re wa rde d or Cha re pla ce d a s dicta te d by pe rforma nce Public Policy and Distribution Decisions • Exclus ive dis tribution O nly ce rta in outle ts a re a llowe d to ca rry a Only firm’s products firm’s • Exclus ive de a ling Exclus ive te rritoria l a gre e me nts Tying a gre e me nts Marketing Logistics and Supply Chain Management • Ma rke ting Logis tics Ma Outbound dis tribution Inbound dis tribution Re ve rs e dis tribution Involve s the e ntire s upply cha in Involve ma na ge me nt s ys te m ma Marketing Logistics and Supply Chain Management • Why Gre a te r Empha s is is Be ing Why P la ce d on Logis tics : Offe rs firms a compe titive a dva nta ge Ca n yie ld cos t s a vings G re a te r product va rie ty re quire s improve d Gre logis tics logis Improve me nts in dis tribution e fficie ncy Improve a re pos s ible due to informa tion te chnology te Marketing Logistics and Supply Chain Management • Goa ls of the Logis tics S ys te m No s ys te m ca n both ma ximize cus tome r No s e rvice a nd minimize cos ts . F irms mus t firs t we igh the be ne fits of Firms highe r s e rvice a ga ins t the cos ts . h ighe S ta te goa ls in te rms of a ta rge te d le ve l of cus tome r s e rvice a t the le a s t cos t. c us Marketing Logistics and Supply Chain Management • Ma jor Logis tics Functions Wa re hous ing Inve ntory Ma na ge me nt Tra ns porta tion Logis tics Informa tion Ma na ge me nt Marketing Logistics and Supply Chain Management Trans po rtatio n Carrie r Optio ns Trans • Truck • Ra il • P ipe line • Air • Wa te r • Inte rne t Inte rm odal trans portation is be com ing m ore com m on Marketing Logistics and Supply Chain Management • Inte gra te d Logis tics Ma na ge me nt C ros s -functiona l te a mwork ins ide the Cros compa ny is critica l c ompa Logis tics pa rtne rs hips a re a ls o built Logis through s ha re d proje cts through Outs ourcing of logis tics firms to thirdpa rty firms is be coming more common ...
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This note was uploaded on 02/09/2012 for the course COMPUTER S a303 taught by Professor None during the Spring '11 term at BEM Bordeaux Management School.

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