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Marketing ChannelsDelivering Customer Value
Chris Beltran, Messaline Clement, Mireya Gama, Cody Prue
Agenda
Chapter 12 Key Ideas
Video
In-N- Out Comprehensive Model
Discussion Questions
The Value Delivery Network
Direct Marketing Channel vs. Conventional Marketing
Channel
Consumer
Retailer
Wholesaler
Producer
Consumer
Producer
Direct Conventional
Vertical Marketing System
In-N-Out: Corporate VMS
Ford: Contractual VMS
Walmart, Home Depot: Administered VMS
Horizontal Marketing SystemWalmart & McDonalds
Taco Bell & Pizza Hut
Multichannel Distribution
Channel Design Decision
Supply Chain Management• Managing upstream and downstream
value- added flows of materials, final goods, and final consumer
Supply Chain Management
Channel Management Decision
Selecting Channel Members
Managing and motivating channel members
Evaluating channel members
Public Policy and Distribution Decisions
Exclusive territorial agreements Producer or seller limit territory
Exclusive dealing Seller requires that the sellers not handle
competitor’s products
Exclusive distribution Seller allows only certain outlets to carry its
products
Tying agreements Dealer must take most or all of the line
Major Logistics Functions
Warehousing Inventory Management
Transportation
Logistics Information
Management
Marketing logistics: Planning, implementing, and
controlling the physical flow of goods and services from points of origin to points of consumption
Transportation Trucks- 40% Railroads- 40% Water carriers- Less than 5% Air carriers & Pipelines- Less
than 1%
Third Party Logistics3PL Supply Chain
Defined as a firm that provides service to its customers of outsourced (3rd Party) logistics as part of their supply chain management functions.
Typically specialized in warehousing and transportation that can be catered to customers needs.
Drag picture to placeholder or click icon to add
Tangible Good
Introduction Leading fast- food retail chain with over 200 locations in
California, Nevada, and Arizona
Private, family- run, non- franchised company Harry Snyder and his wife, Esther, opened what is
said to be California's first drive-thru restaurant.
Known for its made- to –order hamburgers, fresh ingredients and efficient service
Maintained the steady rate of expansion with traditional menu and a simple, customer- friendly philosophy
Distribution
Own distribution system Private butchers, warehouses, truck lines Must improve system to expand beyond west
coast and maintain strategic position
Comprehensive Model of the Marketing Distribution Channel
Supplier
In-N-Out
Consumer
Distributor
Discussion Questions
Do you believe In-N-Out Burger should remain non franchised or branch out like their competitors?
What are the complexities of using international distribution channels?
Referenceshttp://extensionengine.com/project-vs-product-
management/
http://www.referenceforbusiness.com/history/He-Ja/In-N-Out-Burgers-Inc.html#b
http://partners.visitrenotahoe.com/innoutburger