Post on 04-Apr-2018
transcript
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
1/45
1Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Chapter 12: Marketing Channels and Supply ChainManagementObjectives: Explain what a marketing channel is and why intermediaries are needed.
Define the types of channel intermediaries and describe their functions
and activities.
Describe the channel structures for consumer and business-to-business
products and discuss alternative channel arrangements.
Define supply chain management and discuss its benefits.
Discuss the issues that influence channel strategy.
Explain channel leadership, conflict, and partnering.
Describe the logistical components of the supply chain.
Discuss new technology and emerging trends in supply chainmanagement.
Discuss channels and distribution decisions in global markets.
Identify the special problems and opportunities associated with
distribution in service organizations.
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
2/45
2Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Marketing Channels
MarketingChannel
Supply
Chain
A set of interdependent organizationsthat ease the transfer of ownership as
products move from producer to
business user or consumer.
The connected chain of all the businessentities, both internal and external to
the company, that perform or supportthe logistics function.
1
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
3/45
3Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Marketing Channel FunctionsSpecialization andDivision of Labor
Channels
FulfillThree
ImportantFunctions
OvercomingDiscrepancies
Providing ContactEfficiency
1
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
4/45
4Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Specialization and Division of Labor Provides efficiency and cost savings
Attains economies of scale
Aids producers who lack resources tomarket directly
Builds good relationships with customers
1
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
5/45
5Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Overcoming Discrepancies
Discrepancyof
Quantity
Discrepancyof
Assortment
The difference between theamount of product producedand the amount an end user
wants to buy.The lack of all the items acustomer needs to receive fullsatisfaction from a product or
products.
1
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
6/45
6Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Overcoming Discrepancies
TemporalDiscrepancy
SpatialDiscrepancy
A situation that occurs when aproduct is produced but a
customer is not ready to buy it.
The difference between thelocation of a producer and the
location of widely
scattered markets.
1
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
7/45
7Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Contact Efficiency1
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
8/45
8Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Channel Intermediaries
Retailer
MerchantWholesaler
Agents andBrokers
A channel intermediary thatsells mainly to customers.
An institution that buys goodsfrom manufacturers, takes title
to goods, stores them,and resells and ships them.
Wholesaling intermediaries whofacilitate the sale of a product byrepresenting channel member.
2
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
9/45
9Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Channel Intermediaries
Retailers
MerchantWholesalers
Agentsand
Brokers
Take Title to Goods
Take Title to Goods
Do NOT Take Title to Goods
2
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
10/45
10Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Factors Suggesting Type ofWholesaling Intermediary to Use2
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
11/45
11Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Channel Functions Performedby IntermediariesContacting/Promotion
Negotiating
Risk Taking
Researching
Financing
Physically distributing
Storing
Sorting
FacilitatingFunction
TransactionalFunctions
LogisticalFunctions
2
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
12/45
12Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
LogisticsThe 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.
2
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
13/45
13Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Direct Channel
A distribution channel in which
producers sell directly toconsumers.
3
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
14/45
14Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Channels for Consumer Products
Producer Producer Producer Producer
Consumers Consumers Consumers Consumers
Retailers Retailers Retailers
Wholesalers Wholesalers
Agents orBrokers
WholesalerChannel
RetailerChannel
DirectChannel
Agent/BrokerChannel
3
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
15/45
15Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Channels forBusiness-to-Business Products
Producer
IndustrialUser
DirectChannel
Producer
Govt.Buyer
DirectChannel
Producer Producer Producer
IndustrialUser
IndustrialUser
IndustrialUser
IndustrialDistributor
IndustrialDistributor
Agents orBrokers
Agents orBrokers
Agent/BrokerChannel
IndustrialDistributor
Agent/BrokerIndustrialChannel
3
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
16/45
16Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Business-to-Business Exchangeson the Internet
Linking buyers and sellers
Dropping the middleman from the supply chain
Creating private exchanges to automate the
supply chain
3
On Linehttp://www.sherwinwilliams.com
http://www.sherwinwilliams.com/http://www.sherwinwilliams.com/7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
17/45
17Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Alternative Channel ArrangementsMultiple Channels
Strategic ChannelAlliances
NontraditionalChannels
3
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
18/45
18Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Supply Chain ManagementA 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.
4
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
19/45
19Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Physical flow process
that engineers themovement of goods
Communicator ofcustomer demand frompoint of sale to supplier
Role of Supply Chain Management4
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
20/45
20Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Benefits ofSupply Chain Management
Greater Supply Chain Flexibility
Improved Customer Service
Higher Revenues
Reduced Costs
On Line
http://www.nashfinch.com
4
http://www.nashfinch.com/http://www.nashfinch.com/7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
21/45
21Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Channel Strategy Decisions
Producer Factors
Product Factors
Market Factors
FactorsAffectingChannel
Choice
Exclusive Distribution
Selective Distribution
Intensive Distribution
Level ofDistribution
Intensity
5
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
22/45
22Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Market Factors
Market Factors
That AffectChannelChoices
Customer Profiles
Consumer or Industrial
Customer
Size of Market
Geographic Location
5
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
23/45
23Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Product Factors
Product Factors
That AffectChannelChoices
Product Complexity
Product Price
Product Life Cycle
Product Delicacy
5
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
24/45
24Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Producer Factors
Producer Factors
That AffectChannelChoices
Producer Resources
Number of Product Lines
Desire for Channel Control
5
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
25/45
25Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Levels of Distribution IntensityIntensity Level Objective Number of
Intermediaries
Intensive
Selective
Exclusive
Achieve massmarket selling.
Convenience goods.
Work with selectedintermediaries.
Shopping and somespecialty goods.
Work with singleintermediary. Specialtygoods and industrial
equipment.
Many
Several
One
On Line
http://www.radioshack.com
http://www.sprint.com
http://www.compaq.com
http://www.rca.com
http://www.directv.com
5
http://www.radioshack.com/http://www.sprint.com/http://www.compaq.com/http://www.rca.com/http://www.directv.com/http://www.directv.com/http://www.rca.com/http://www.compaq.com/http://www.sprint.com/http://www.radioshack.com/7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
26/45
26Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Managing Channel Relationships
Channel Partnering
Channel Conflict
Channel Leadership
Channel Control
Channel Power
SocialDimensionsof Channels
6
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
27/45
27Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Channel Power, Control,and LeadershipChannelPower
ChannelControl
ChannelLeader
A channel members capacity tocontrol or influence the behavior
of other channel members
A situation that occurs when onemarketing channel memberintentionally affects another
members behavior.
A member of a marketing channelthat exercises authority/power over
the activities of other members.
6
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
28/45
28Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Channel Conflict
A clash of goals and methods
between distribution channel members.
HorizontalConflict
Occurs among channel memberson the same level
VerticalConflict
Occurs among channel membersat different levels
6
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
29/45
29Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Channel Partnering
The joint effort of all channel
members to create a supply
chain that serves customers andcreates a competitive
advantage.
6
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
30/45
30Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
HighMinimalInvestment
Required
HighMinimalInformationSharing
FewManyNumber of
Suppliers
Long-term
Cooperative
DependentValue-added services
Short-term
Adversarial
IndependentPrice important
Supplier /
Manufacturer
Relationships
Partnership-BasedTransaction-Based
Transaction- vs.Partnership-Based Firms6
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
31/45
31Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Integrated LogisticalComponents of the Supply ChainSourcing & Procurement
Production Scheduling
Order Processing & Customer Service
Inventory Control
SupplyChainTeam
Warehouse & Materials Handling
TransportationLogisticsInformatio
nSystem
7
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
32/45
32Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Sourcing and Procurement
NegotiateService Levels
NegotiatePrice
SelectSuppliers
DevelopSpecifications
PlanPurchasing Strategies
Role ofPurchasing
Departments
7
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
33/45
33Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Production Scheduling
Push / Pull
Strategy
Traditional Focus
Push
Start ofProduction
Manufacturing
Inventory-Based
Mass Production
Customer Focus
Pull
Customer-OrderBased
Mass Customization
7
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
34/45
34Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Just-in-Time ManufacturingA process that redefines and
simplifies manufacturing by
reducing inventory levels and
delivering raw materials just
when they are needed on the
production line.
7
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
35/45
35Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Benefits of JIT Reduces raw material inventories
Shortens lead times
Creates better supplier relationships
Reduces production and storeroom
costs
Reduces paperwork
7
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
36/45
36Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
JIT Requirements
Requirements
forManufacturers
Using JIT
Receive High-Quality Parts
Meet SupplierDelivery Commitments
Have a CrisisManagement Plan
7
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
37/45
37Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Electronic Data Interchange
Information technology that
replaces paper documents that
accompany business
transactions.
On Line
http://www.walmartstores.com
7
http://www.walmartstores.com/http://www.walmartstores.com/7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
38/45
38Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Inventory Control SystemA method of developing and
maintaining an adequate
assortment of materials or
products to meet a
manufacturers or
a customers demand.
7
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
39/45
39Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
MRP and DRPMaterials
RequirementPlanning
DistributionResource
Planning
An inventory control system thatmanages the replenishment ofraw materials, supplies, andcomponents from the supplier to
the manufacturer.
An inventory control system thatmanages the replenishment of
goods from the manufacturer tothe final consumer.
7
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
40/45
40Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Warehouse and Materials-Handling
MaterialsHandlingFunctions
Receive goods intowarehouse
Dispatch the goods totemporary storage
Recall, select, or pick thegoods for shipment
Identify, sort, andlabel goods
7
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
41/45
41Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
TransportationCost
Transit Time
Reliability
Capability
Accessibility
Traceability
Criteriafor
TransportationMode
Choice
7
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
42/45
42Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Criteria for RankingModes of TransportationRelativeCost
TransitTime
Reliability
Capability
Accessibility
Traceability
Highest Lowest
Air WaterPipeRailTruck
Water Rail Pipe Truck Air
Pipe Truck Rail Air Water
Water
Truck
Rail Truck Air Pipe
Rail Air Water Pipe
Air Truck Rail Water Pipe
7
7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
43/45
43Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Trends inSupply Chain Management
ElectronicDistribution
Outsourcing ofLogistics Functions
AdvancedComputer TechnologyTrends
Affecting theLogisticsIndustry
8 eTrade
http://f/ch12/eTrade1.mpghttp://f/ch12/eTrade1.mpg7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
44/45
44Chap. 12 Marketing 7e Lamb Hair McDaniel2004 South-Western/Thomson Learning
Channels and DistributionDecisions for Global Markets
Global SupplyChain Management
Awareness of trade legalities
Transportation Issues
Global ChannelDevelopment
Channel structureand type differ
Gray marketing channels
9
On Line
http://www.wto.com
http://www.wto.com/http://www.wto.com/7/29/2019 Distbn Channels SCM Lamb & Hair-Ch 12
45/45
45
Channels and DistributionDecisions for Services
Areas of Focusfor
ServiceDistribution
Minimizing wait times
Managing service capacity
Improving service delivery
10