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    Marketing Channels and Supply Chain Management

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    Kushal Lokesh
    This document discusses marketing channels and supply chain management. It covers channel design, behavior, and management. The key topics covered are: 1) The functions of marketing channels including facilitating the movement of products to customers and bridging gaps in time, place, and possession. 2) Channel design considerations like analyzing customer needs, setting objectives, and evaluating alternatives. 3) Managing channel members by selecting, motivating, and evaluating performance. 4) The importance of integrated logistics and supply chain management in improving efficiency and customer service.

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    Marketing Channels and Supply Chain Management

    Uploaded by

    Kushal Lokesh
    39 views25 pages
    This document discusses marketing channels and supply chain management. It covers channel design, behavior, and management. The key topics covered are: 1) The functions of marketing channels including facilitating the movement of products to customers and bridging gaps in time, place, and possession. 2) Channel design considerations like analyzing customer needs, setting objectives, and evaluating alternatives. 3) Managing channel members by selecting, motivating, and evaluating performance. 4) The importance of integrated logistics and supply chain management in improving efficiency and customer service.

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    kotler13_exs

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    This document discusses marketing channels and supply chain management. It covers channel design, behavior, and management. The key topics covered are: 1) The functions of marketing channels including facilitating the movement of products to customers and bridging gaps in time, place, and possession. 2) Channel design considerations like analyzing customer needs, setting objectives, and evaluating alternatives. 3) Managing channel members by selecting, motivating, and evaluating performance. 4) The importance of integrated logistics and supply chain management in improving efficiency and customer service.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    39 views25 pages

    Marketing Channels and Supply Chain Management

    Uploaded by

    Kushal Lokesh
    This document discusses marketing channels and supply chain management. It covers channel design, behavior, and management. The key topics covered are: 1) The functions of marketing channels including facilitating the movement of products to customers and bridging gaps in time, place, and possession. 2) Channel design considerations like analyzing customer needs, setting objectives, and evaluating alternatives. 3) Managing channel members by selecting, motivating, and evaluating performance. 4) The importance of integrated logistics and supply chain management in improving efficiency and customer service.

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    You are on page 1of 25

    Marketing Channels

    and Supply Chain


    Management
    Objectives
    • Know why companies use distribution
    channels and understand the functions that
    these channels perform.
    • Learn how channel members interact and
    how they organize to perform the work of
    the channel.
    • Know the major channel alternatives that
    are open to a company.
    Objectives
    • Comprehend how companies select,
    motivate, and evaluate channel
    members.
    • Understand the nature and importance
    of marketing logistics and integrated
    supply chain management.
    Case Study
    Caterpillar
    • Dominates world’s • Caterpillar stresses
    markets for heavy dealer profitability,
    construction and extraordinary dealer
    mining equipment. support, personal
    • Independent dealers relationships, dealer
    are key to success performance and full,
    • Dealer network is honest, and frequent
    linked via computers communications
    Definition
    • 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.
    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
    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.

    13 - 7
    Nature & Importance of
    Marketing Channels
    Key Functions Performed by
    Channel Members
    • Information • Negotiation
    • Promotion • Physical Distribution
    • Contact • Financing
    • Matching • Risk taking

    13 - 8
    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.

    13 - 9
    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

    13 - 10
    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
    13 - 11
    Channel Behavior and
    Organization
    • Vertical Marketing Systems
     Corporate VMS
     Contractual VMS
     Manufacturer-sponsored retailer franchise system
     Manufacturer-sponsored wholesaler franchise
    system
     Service-firm-sponsored retailer franchise system

     Administered VMS

    13 - 12
    Channel Behavior and
    Organization
    • Multichannel Distribution Systems
     Also called hybrid marketing channels
     Occurs when a firm uses two or more
    marketing channels
     Hybrid marketing has many advantages
    • Changing Channel Organization
     Disintermediation
    13 - 13
    Channel Design Decisions

    • Step 1: Analyzing Consumer Needs


     Cost and feasibility of meeting needs must be
    considered
    • Step 2: Setting Channel Objectives
     Set channel objectives in terms of targeted
    level of customer service
     Many factors influence channel objectives
    13 - 14
    Channel Design Decisions
    • Step 3: Identifying Major Alternatives
     Types of intermediaries
     Company sales force, manufacturer’s agency,
    industrial distributors
     Number of marketing intermediaries
     Intensive, selective, and exclusive distribution
     Responsibilities of channel members

    13 - 15
    Channel Design Decisions

    • Step 4: Evaluating Major Alternatives


     Economic criteria
     Control issues
     Adaptive criteria

    13 - 16
    Channel Design Decisions
    • Designing International Distribution
    Channels
     Global marketers usually adapt their channel
    strategies to structures that exist within
    foreign countries
     Key challenges:
     May be complex or hard to penetrate
     May be scattered, inefficient, or totally lacking

    13 - 17
    Channel Management
    Decisions
    • Selecting Channel Members
     Identify characteristics that distinguish the best
    channel members
    • Managing and Motivating Channel Members
     Partner relationship management (PRM) is key
    • Evaluating Channel Members
     Performance should be checked against standards
     Channel members should be rewarded or replaced as
    dictated by performance

    13 - 18
    Public Policy and
    Distribution Decisions
    • Exclusive distribution
     Only certain outlets are allowed to carry a
    firm’s products
    • Exclusive dealing
     Exclusive territorial agreements
     Tying agreements

    13 - 19
    Marketing Logistics and
    Supply Chain Management
    • Marketing Logistics
     Outbound distribution
     Inbound distribution
     Reverse distribution
     Involves the entire supply chain management
    system

    13 - 20
    Marketing Logistics and
    Supply Chain Management
    • Why Greater Emphasis is Being Placed on
    Logistics:
     Offers firms a competitive advantage
     Can yield cost savings
     Greater product variety requires improved
    logistics
     Improvements in distribution efficiency are
    possible due to information technology

    13 - 21
    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.

    13 - 22
    Marketing Logistics and
    Supply Chain Management
    • Major Logistics Functions
     Warehousing
     Inventory Management
     Transportation
     Logistics Information Management

    13 - 23
    Marketing Logistics and
    Supply Chain Management

    Transportation Carrier Options


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

    Intermodal transportation is becoming


    more common
    13 - 24
    Marketing Logistics and
    Supply Chain Management
    • Integrated Logistics Management
     Cross-functional teamwork inside the
    company is critical
     Logistics partnerships are also built through
    shared projects
     Outsourcing of logistics firms to third-party
    firms is becoming more common

    13 - 25

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