Marketing channels & scm ppt @ bec doms bagalkot mba

1. Marketing Channels & SCM
1

2. Learning Objectives
1. Explain what a marketing channel is and
why intermediaries are needed.
12 2. Define the types of channel intermediaries
and describe their functions and activities.
2

3. Learning Objectives (continued)
3. Describe the channel structures for
consumer and business-to-business
products and discuss alternative channel
arrangements.
12
4. Define supply chain management and
chapter
discuss its benefits.
5. Discuss the issues that influence channel
strategy.
3

4. Learning Objectives (continued)
6. Explain channel leadership, conflict, and
partnering.
12 7. Describe the logistical components of the
supply chain.
chapter
8. Discuss the concept of balancing logistics
service and cost.
4

5. Learning Objectives (continued)
9. Discuss new technology and emerging
trends in supply chain management.
12 10. Discuss channels and distribution
decisions in global markets.
chapter
11. Identify the special problems and
opportunities associated with distribution
in service organizations.
5

6. Learning Objective 1
Explain what a marketing channel
is and why intermediaries are needed.
6

7. Marketing Channels 1
A set of interdependent organizations
Marketing that ease the transfer of ownership as
Channel products move from producer to
business user or consumer.
The connected chain of all the business
Supply entities, both internal and external to the
Chain company, that perform or support the
logistics function.
7

8. Marketing Channel Functions 1
Specialization and
Division of Labor
Channels
Fulfill
Three Overcoming
Important Discrepancies
Functions
Providing Contact
Efficiency
8

9. Specialization and 1
Division of Labor
 Provides economies of scale
 Aids producers who lack resources to market
directly
 Builds good relationships with customers
9

10. Overcoming Discrepancies 1
Discrepancy The difference between the amount
of of product produced and the
Quantity amount an end user wants to buy.
Discrepancy The lack of all the items a
customer needs to receive full
of satisfaction from a product or
Assortment products.
10

11. Overcoming Discrepancies 1
A situation that occurs when a
Temporal
product is produced but a
Discrepancy customer is not ready to buy it.
The difference between the
Spatial location of a producer and the
Discrepancy location of widely
scattered markets.
11

12. Contact Efficiency 1
Zenith Sony RCA Toshiba
Zenith Sony RCA Toshiba
Circuit City
12

13. Learning Objective 2
Define the types of channel
intermediaries and describe their
functions and activities.
13

14. Channel Intermediaries 2
A channel intermediary that
Retailer sells mainly to customers.
An institution that buys goods
Merchant from manufacturers, takes title
Wholesaler to goods, stores them,
and resells and ships them.
Wholesaling intermediaries who
Agents and
facilitate the sale of a product by
Brokers representing channel member.
14

15. Channel Intermediaries 2
Take Title to Goods
Retailers
Merchant
Take Title to Goods
Wholesalers
Agents
and Do NOT Take Title to Goods
Brokers
15

16. Channel Functions 2
Performed by Intermediaries
Contacting/Promotion
Transactional
Negotiating
Functions
Risk Taking
Physically distributing
Logistical Storing
Functions
Sorting
Facilitating Researching
Function Financing
16

17. Logistics 2
The process of strategically
managing the efficient flow and
storage of raw materials, in-
process inventory, and finished
goods from point of origin to
point of consumption.
17

18. Learning Objective 3
Describe the channel structures
for consumer and
business-to-business products
and discuss alternative
channel arrangements.
18

19. Direct Channel 3
A distribution channel in which
producers sell directly to
consumers.
19

20. Channels for Consumer Products 3
Direct Retailer Wholesaler Agent/Broker
Channel Channel Channel Channel
Producer Producer Producer Producer
Agents or
Brokers
Wholesalers Wholesalers
Retailers Retailers Retailers
Consumers Consumers Consumers Consumers
20

21. Channels for Business-to-Business3
Products
Direct Industrial Agent/Broker Agent/Broker Direct
Channel Distributor Channel Industrial Channel
Channel
Producer Producer Producer Producer Producer
Agents or Agents or
Brokers Brokers
Industrial Industrial
Distributor Distributor
Industrial Industrial Industrial Industrial Government
User User User User Buyer
21

22. Alternative Channel Arrangements3
Multiple Channels
Nontraditional
Different Channels
Channels
May be Used
Adaptive Channels
Strategic Channel
Alliances
22

23. Learning Objective 4
Define supply chain management
and discuss its benefits.
23

24. Supply Chain Management 4
A management system that
coordinates and integrates all of
the activities performed by
supply chain members into a
seamless process, from the
source to the point of
consumption.
24

25. Supply Chain Management 4
Focus on Innovative Solutions
Competitive with focus on
Customer Satisfaction
Results Synchronized Flow
of
Supply Chain
Management Customer Value
25

26. Role of Supply Chain Management4
Communicator of
customer demand from
Role of point of sale to supplier
Supply Chain
Management
Physical flow process
that engineers the
movement of goods
26

27. Supply Chain Management 4
Activities
Determine channel strategy and
level of distribution intensity
Manage relationships
in the supply chain
Manage the logistical components
of the supply chain
Balance the costs of the supply chain
with the service level demanded by customer
27

28. Benefits of 4
Supply Chain Management
Reduced Costs
Improved Service
Common Benefits
of Supply Chain Enhanced Revenues
Management
28

29. Learning Objective 5
Discuss the issues that
influence channel strategy.
29

30. Channel Strategy Decisions 5
Issues that Influence
Channel Strategy
Factors
Levels of
Affecting
Distribution
Channel
Intensity
Choice
Market Factors Intensive Distribution
Product Factors Selective Distribution
Producer Factors Exclusive Distribution
30

31. Market Factors 5
Customer Profiles
Consumer or Industrial
Customer
Market Factors Size of Market
That Affect
Channel
Choices Geographic Location
31

32. Product Factors 5
Product Complexity
Product Price
Product Life Cycle
Product Factors
That Affect
Channel
Choices Product Delicacy
32

33. Producer Factors 5
Producer Resources
Number of Product Lines
Producer Factors
That Affect
Channel Desire for Channel Control
Choices
33

34. Levels of Distribution Intensity 5
Number of
Intensity Level Objective
Intermediaries
Achieve mass market
Intensive selling. Many
Convenience goods.
Work with selected
intermediaries.
Selective Several
Shopping and some
specialty goods.
Work with single
intermediary. Specialty
Exclusive goods and industrial
One
equipment.
34

35. Learning Objective 6
Explain channel leadership,
conflict, and partnering.
35

36. Managing Channel Relationships 6
Channel Power
Channel Control
Social
Dimensions
Channel Leadership
of Channels
Channel Conflict
Channel Partnering
36

37. Channel Power, 6
Control, and Leadership
A channel member’s capacity to
Channel
control or influence the behavior
Power of other channel members
A situation that occurs when one
Channel marketing channel member
Control intentionally affects another
member’s behavior.
A member of a marketing channel
Channel
that exercises authority/power over
Leader the activities of other members.
37

38. Channel Conflict 6
A clash of goals and methods between
distribution channel members.
Horizontal Occurs among channel members
Conflict on the same level
Vertical Occurs among channel members
Conflict at different levels
38

39. Channel Partnering 6
The joint effort of all channel
members to create a supply chain
that serves customers and creates
a competitive advantage.
39

40. Transaction- vs. 6
Partnership-Based Firms
Transaction-Based Partnership-Based
Short-term relationships Long-term relationships
Multiple suppliers Few suppliers
Adversarial relationships Cooperative partnerships
Price dominates Value-added services dominate
Minimal supplier investment High supplier/buyer investment
Minimal information sharing Extensive information sharing
Firms are independent Firms are interdependent
Minimal functional Extensive functional
area interaction area interaction
40

41. Learning Objective 7
Describe the logistical components
of the supply chain.
41

42. Integrated Logistical 7
Components of the Supply Chain
Sourcing & Procurement
Logistics Information System
Production Scheduling
Supply Order Processing & Customer Service
Chain
Team Inventory Control
Warehouse & Materials Handling
Transportation
42

43. Sourcing and Procurement 7
Plan
Purchasing Strategies
Develop
Specifications
Role of
Purchasing Select
Departments Suppliers
Negotiate
Price
Negotiate
Service Levels
43

44. Production Scheduling 7
Traditional Focus Customer Focus
Push/Pull
Push Pull
Strategy
Start of Customer-Order
Inventory-Based
Production Based
Manufacturing Mass Production Mass Customization
44

45. Just-in-Time Manufacturing 7
A process that redefines and
simplifies manufacturing by
reducing inventory levels and
delivering raw materials just
when they are needed on the
production line.
45

46. Benefits of JIT 7
 Reduces raw material inventories
 Shortens lead times
 Creates better supplier relationships
 Reduces production and storeroom costs
 Reduces paperwork
46

47. Electronic Data Interchange 7
Information technology that
replaces paper documents that
accompany business
transactions.
47

48. Inventory Control System 7
A method of developing and
maintaining an adequate
assortment of materials or
products to meet a
manufacturer’s or a customer’s
demand.
48

49. Warehouse and 7
Materials-Handling
Receive goods into
warehouse
Identify, sort and
Functions label goods
of
Materials
Dispatch the goods to
Handling temporary storage
Recall, select, or pick the
goods for shipment
49

50. Transportation 7
Cost
Transit Time
Reliability
Criteria Capability
for
Transportation Accessibility
Mode
Choice Traceability
50

51. Criteria for Ranking 7
Modes of Transportation
Highest Lowest
Relative Truck Rail Pipe Water
Air
Cost
Transit
Water Rail Pipe Truck Air
Time
Reliability Pipe Truck Rail Air Water
Capability Water Rail Truck Air Pipe
Accessibility Truck Rail Air Water Pipe
Traceability Air Truck Rail Water Pipe
51

52. Learning Objective 8
Discuss the concept of
balancing logistics service and cost.
52

53. Logistics Service 8
Interrelated activities performed
by a member
of the supply chain to ensure that
the right product is in the right
place at the right time.
53

54. Logistical Competencies 8
 Devise logistics service strategies as a means of
competitive differentiation
 Integrate members of supply chain to achieve
operating excellence
 Respond quickly to changing logistical requirements
 Constantly monitor all aspects of the
supply chain
54

55. Learning Objective 9
Discuss new technology
and emerging trends in
supply chain management.
55

56. Trends in 9
Supply Chain Management
Advanced
Computer Technology
Trends
Affecting the
Logistics Outsourcing of
Logistics Functions
Industry
Electronic
Distribution
56

57. Learning Objective 10
Discuss channels and distribution
decisions in global markets.
57

58. Channels and Distribution 10
Decisions for Global Markets
Channel structure differs
Global Channel Channel types differ
Development
“Gray” marketing channels
Awareness of trade legalities
Global Supply
Chain Management
Transportation Infrastructure
58

59. Learning Objective 11
Identify the special problems and
opportunities associated with
distribution in service organizations.
59

60. Channels and Distribution 11
Decisions for Services
Minimizing wait times
Managing service capacity
Areas of Focus Improving delivery
for
through new channels
Service Distribution
60