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Kotler12-Class Activity

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Aabroo Fatima
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7 views

Kotler12-Class Activity

Class activity

Uploaded by

Aabroo Fatima
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 14

Marketing Channels

and Supply Chain


Management

Chapter 12
Definitions
• Value Delivery Network
 The network made up of the company,
suppliers, distributors, and ultimately
customers who “partner” with each other
to improve the performance of the entire
system.
• Marketing channel
 Set of interdependent organizations
involved in the process of making a product
or service available for use or consumption
by the consumer or business user
12 - 2
Goal 1: Know why companies use channels and understand their functions
Nature & Importance of
Marketing Channels
• Channel choices affect other
decisions in the marketing mix
 Pricing, Marketing communications
• A strong distribution system can
be a competitive advantage
• Channel decisions involve long-
term commitments to other firms

12 - 3
Goal 1: Know why companies use channels and understand their functions
Nature & Importance of
Marketing Channels
• How Channel Members Add Value
 Intermediaries require fewer contacts to
move the product to the final purchaser.
 Intermediaries help match product
assortment demand with supply.
 Intermediaries help bridge major time,
place, and possession gaps that separate
products from those who would use them.

12 - 4
Goal 1: Know why companies use channels and understand their functions
Nature & Importance of
Marketing Channels

Key Functions Performed by


Channel Members
• Information • Negotiation
• Promotion • Physical Distribution
• Financing
• Contact
• Risk taking
• Matching

12 - 5
Goal 1: Know why companies use channels and understand their functions
Nature & Importance of
Marketing Channels
• Number of Channel Levels
 The number of intermediary levels
indicates the length of a marketing
channel.
• Direct Channels
• Indirect Channels
 Producers lose more control and face
greater channel complexity as
additional channel levels are added.
12 - 6
Goal 1: Know why companies use channels and understand their functions
Nature & Importance of
Marketing Channels

Channel Members Are Connected


Via A Variety of Flows

• Physical Flow • Information Flow


• Payment Flow • Promotion Flow

• Flow of Ownership
12 - 7
Goal 1: Know why companies use channels and understand their functions
Channel Behavior and
Organization
• Channel Conflict
 Occurs when channel members
disagree on roles, activities, or
rewards.
 Types of Conflict:
• Horizontal conflict: occurs among firms
at the same channel level
• Vertical conflict: occurs among firms at
different channel levels
12 - 8
Goal 1: Know why companies use channels and understand their functions
Channel Behavior and
Organization
• Conventional Distribution Channels

• Vertical Marketing Systems

1.Corporate VMS
2.Contractual VMS
3.Administered VMS

12 - 9
Goal 1: Know why companies use channels and understand their functions
Channel Behavior and
Organization
• Horizontal Marketing Systems
 Companies at the same level work together
with channel members
• Multi channel Distribution Systems
 Also called hybrid marketing channels
 Occurs when a firm uses two or more
marketing channels
• Changing Channel Organization
 Disintermediation

12 - 10
Goal 2: Learn how channel members interact and how they organize
Marketing Logistics and
Supply Chain Management
• Marketing Logistics
1. Outbound distribution
2. Inbound distribution
3. Reverse distribution
4. Involves the entire supply chain
management system

12 - 11
Goal 5: Understand marketing logistics & integrated supply chain management
Marketing Logistics and
Supply Chain Management
• Goals of the Logistics System
 No system can both maximize customer
service and minimize costs.
 Firms must first weigh the benefits of
higher service against the costs.
 State goals in terms of a targeted level of
customer service at the least cost.

12 - 12
Goal 5: Understand marketing logistics & integrated supply chain management
Marketing Logistics and
Supply Chain Management
• Major Logistics Functions

1. Warehousing
2. Inventory Management
3. Transportation
4. Logistics Information Management

12 - 13
Goal 5: Understand marketing logistics & integrated supply chain management
Marketing Logistics and
Supply Chain Management

Transportation Carrier Options


• Truck • Pipeline
• Rail • Air
• Water • Internet

Intermodal transportation is becoming


more common 12 - 14
Goal 5: Understand marketing logistics & integrated supply chain management

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