Z Score,T Score, Percential Rank and Box Plot Graph
Marketing Chapter 14
1. Chapter 14: “Value Chain Management and Logistics” Joel R. Evans & Barry Berman Marketing, 10e: Marketing in the 21st Century
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3. The Distribution Process Value Delivery Chain Value Chain Total Delivered Product Level of Satisfaction Supplier/ Manufacturer Goals Distribution Intermediary Goals Customer Goals
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5. Channel Functions Functions Performed in a Channel of Distribution Promotion Customer Services Buying Product Planning Marketing Research Distribution Pricing
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8. A Direct Distribution Channel Manufacturer 200,000 Customers In this direct channel , an umbrella manufacturer sells directly to final consumers. It makes 200,000 separate transactions, one for each customer.
9. An Indirect Distribution Channel Manufacturer Wholesaler (East U.S.) Wholesaler (South U.S.) Wholesaler (North U.S.) Wholesaler (West U.S.) 50 Retailers 50 Retailers 50 Retailers 50 Retailers 1,000 Customers per Retailer 1,000 Customers per Retailer 1,000 Customers per Retailer 1,000 Customers per Retailer In this indirect channel , an umbrella maker has only 4 transactions. It sells to regional wholesalers, which resell to 50 retailers each. The retailers each sell to 1,000 final consumers.
10. Typical Indirect Channels of Distribution Manufacturer/ Service Provider Manufacturer/ Service Provider Manufacturer/ Service Provider Manufacturer/ Service Provider Retailer Final Consumer Final Consumer Organizational Consumer Retailer Wholesale r Merchant Wholesaler or Sales Agent Organizational Consumer Distributor Merchant Wholesaler or Sales Agent 1 2 3 4
11. Pushing Versus Pulling Strategies Manufacturer/ Service Provider Distribution Intermediaries Consumers Consumers Distribution Intermediaries Manufacturer/ Service Provider Pushing Pulling
12. Intensity of Channel Coverage Exclusive Distribution Selective Distribution Intensive Distribution A firm severely limits the number of resellers in an area. It seeks a prestige image, channel control, and high profit margins and accepts lower total sales . A firm employs a moderate number of resellers in an area. It tries to combine some channel control and a solid image with good sales volume and profits . A firm uses a large number of resellers in an area. Its goals are to have wide market coverage, channel acceptance, and high total sales and profits. Per-unit profits are low.
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16. Selected Physical Distribution Activities Involved in a Typical Order Cycle Production scheduled Inventory on hand checked Supplier receives and enters order Customer places an order Orders shipped to individual customers Goods stored until enough orders are placed Goods packaged, sorted, tagged, and sent to local warehouse Insufficient goods in stock Sufficient goods in stock
17. An Illustration of the Total-Cost Approach in Distribution Carrier Air Rail Truck $1.6 mill. Annual freight costs $100,000 Annual warehousing costs Annual costs of lost sales due to being out of stock Costs $500,00 $1.5 mill $300,000 $800,000 $300,000 $1.4mil. $1.2 mil. $500,000 $200,000
18. What Happens When a Firm Has Stock Shortages Most Desirable Action Least Desirable Action Wait until merchandise is available . Purchase a substitute product from the same seller. Switch to a new seller while merchandise is not available. Permanently switch to a new seller for all purchases. When a firm runs out of stock, customers can