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TRANSCRIPT
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MANAGING
MARKETINGCHANNELS AND
SUPPLY CHAINS
CHAPTER
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What is a Marketing Channel?
A set of interdependent organizationsthat ease the transfer of ownership as
products move from producer tobusiness user or consumer.
A set of interdependent organizations
that ease the transfer of ownership asproducts move from producer to
business user or consumer.
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Retailer
Retailer
Wholesaler
Wholesaler
Agents andBrokers
Agents andBrokers
A channel intermediar thatsells mainl to customers.
A channel intermediar thatsells mainl to customers.
An institution that bus goodsfrom manufacturers! takes title
to goods! stores them!and resells and ships them.
An institution that bus goodsfrom manufacturers! takes title
to goods! stores them!and resells and ships them.
Wholesaling intermediaries whofacilitate the sale of a product brepresenting channel member.
Wholesaling intermediaries whofacilitate the sale of a product brepresenting channel member.
"ames for Marketing #ntermediaries
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$pecialization and%ivision of &abor
$pecialization and%ivision of &abor
'hreeMain
(unctions
'hreeMain
(unctions)vercoming
%iscrepancies
)vercoming%iscrepancies
*roviding Contact+fficienc
*roviding Contact+fficienc
,)B )( #"'+RM+M%#AR#+$
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• Provides efficiency and cost savings
• Attains economies of scale
• Aids producers who lack resources to market
directly
• Builds good relationships with customers
$*+C#A-A'#)" A"% %##$#)" )(
&AB)R
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%iscrepanc
of/uantit
%iscrepanc
of/uantit
%iscrepanc
of Assortment
%iscrepanc
of Assortment
'he difference between the
amount of product producedand the amount an end userwants to bu.
'he difference between the
amount of product producedand the amount an end userwants to bu.
'he lack of all the items a
customer needs to receive fullsatisfaction from a product orproducts.
'he lack of all the items acustomer needs to receive fullsatisfaction from a product orproducts.
)+RC)M#"0 %#$CR+*A"C#+$
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'emporal%iscrepanc
'emporal%iscrepanc
$patial%iscrepanc
$patial
%iscrepanc
A situation that occurs when a
product is produced but acustomer is not read to bu it.
A situation that occurs when a
product is produced but acustomer is not read to bu it.
'he difference between thelocation of a producer and the
location of widelscattered markets.
'he difference between thelocation of a producer and the
location of widelscattered markets.
)+RC)M#"0 %#$CR+*A"C#+$
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Contact Efficiency
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RetailersRetailersRetailersRetailers
MerchantMerchantWholesalersWholesalers
MerchantMerchantWholesalersWholesalers
AgentsAgentsandand
BrokersBrokers
AgentsAgentsandand
BrokersBrokers
'ake 'itle to 0oods'ake 'itle to 0oods'ake 'itle to 0oods'ake 'itle to 0oods
'ake 'itle to 0oods'ake 'itle to 0oods'ake 'itle to 0oods'ake 'itle to 0oods
%o ")' 'ake 'itle to 0oods%o ")' 'ake 'itle to 0oods%o ")' 'ake 'itle to 0oods%o ")' 'ake 'itle to 0oods
C1A""+& #"'+RM+M%#AR#+$
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C1A""+&$ ()R C)"$2M+R *R)%2C'$
DIRECT RESELLER WHOL SAL AGENT
Producer Producer Producer Producer
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*roducer (actors*roducer (actors
*roduct (actors*roduct (actors
Market (actorsMarket (actors
(actors(actors
AffectingAffectingChannelChannelChoiceChoice
(actors(actorsAffectingAffectingChannelChannelChoiceChoice
+3clusive %istribution+3clusive %istribution
$elective %istribution$elective %istribution
#ntensive %istribution#ntensive %istribution
&evel of &evel of
%istribution%istribution#ntensit#ntensit
&evel of &evel of
%istribution%istribution#ntensit#ntensit
What makes ou choose a particular
channel?
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Market (actorsMarket (actors'hat Affect'hat AffectChannelChannelChoicesChoices
Market (actorsMarket (actors'hat Affect'hat AffectChannelChannelChoicesChoices
Customer *rofilesCustomer *rofiles
Consumer or #ndustrialCustomer
Consumer or #ndustrial
Customer
$ize of Market$ize of Market
0eographic &ocation
MAR4+' (AC')R$
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*roduct (actors*roduct (actors'hat Affect'hat Affect
ChannelChannelChoicesChoices
*roduct (actors*roduct (actors'hat Affect'hat Affect
ChannelChannelChoicesChoices
*roduct Comple3it*roduct Comple3it
*roduct *rice*roduct *rice
*roduct &ife Ccle*roduct &ife Ccle
*roduct %elicac*roduct %elicac
*R)%2C' (AC')R$
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*roducer (actors*roducer (actors'hat Affect'hat AffectChannelChannelChoicesChoices
*roducer (actors*roducer (actors'hat Affect'hat AffectChannelChannelChoicesChoices
*roducer Resources*roducer Resources
"umber of *roduct &ines"umber of *roduct &ines
%esire for Channel Control%esire for Channel Control
*R)%2C+R (AC')R$
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Intensity Level Intensity Level Intensity Level Intensity Level ObjectiveObjectiveObjectiveObjective Number ofNumber of
IntermediariesIntermediaries
Number ofNumber ofIntermediariesIntermediaries
IntensiveIntensive
SelectiveSelective
ExclusiveExclusive
Achieve mass marketselling.
Convenience goods.
Achieve mass market
selling.Convenience goods.
Work with selectedintermediaries.
$hopping and somespecialt goods.
Work with selectedintermediaries.
$hopping and somespecialt goods.
Work with singleintermediar. $pecialtgoods and industrial
e5uipment.
Work with singleintermediar. $pecialtgoods and industrial
e5uipment.
ManMan
$everal$everal
)ne)ne
&++&$ )( %#$'R#B2'#)" #"'+"$#'6
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&++&$ )( %#$'R#B2'#)" #"'+"$#'6
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CostCost
'ransit 'ime'ransit 'ime
ReliabilitReliabilit
CapabilitCapabilit
AccessibilitAccessibilit
'raceabilit'raceabilit
CriteriaCriteria
for for
'ransportation'ransportationModeMode
ChoiceChoice
CriteriaCriteriafor for
'ransportation'ransportationModeMode
ChoiceChoice
'RA"$*)R'A'#)" (AC')R$
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Advantages and disadvantages of five
modes of transportation
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+R'#CA& #"'+0RA'#)"
Backward an Forward Integraton !
"#$ t%e &te' "e(ore or a(ter $o# n t%e c%an
The degree to which a firm owns the stages
of its supply chain management
from materials supply- to manufacture -to distribution- to sale.
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1)R#-)"'A& #"'+0RA'#)"
When a company takes over another in the same business, thus
eliminating a competitor and achieving a bigger market share
For example - Whole Foods buys Wild Oats to gain
a bigger share of the health food market
Problem is monopoly creation, so govts watch these sales closely
Mitsubishi
Dealership
Mazda
Dealership
Nissan
Dealership
Toyota
Dealership
Honda
Dealership