Lecture Marketing: The core (5/e): Chapter 12 – Kerin, Hartley, Rudelius

Chapter 12: Managing marketing channels and supply chains. After reading this chapter you should be able to: Explain what is meant by a marketing channel of distribution and why intermediaries are needed; distinguish among traditional marketing channels, electronic marketing channels, and different types of vertical marketing systems; describe factors that marketing executives consider when selecting and managing a marketing channel.

                            McGraw­Hill/Irwin                                                                                             Copyright © 2013 by The McGraw­Hill Companies, Inc.  All rights reserved LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 12, YOU SHOULD BE ABLE TO: LO1 LO2 Explain what is meant by a marketing channel of distribution and why intermediaries are needed Distinguish among traditional marketing channels, electronic marketing channels, and different types of vertical marketing systems 12­2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 12, YOU SHOULD BE ABLE TO: LO3 Describe factors that marketing executives consider when selecting and managing a marketing channel LO4 Explain what supply chain and logistics management are and how they relate to marketing strategy 12­3 CALLAWAY GOLF: DESIGNING AND DELIVERING THE GOODS FOR GREAT GOLF 12­4 FIGURE 12-1 The variety of terms used for marketing intermediaries that vary in specificity and use in consumer and business markets 12­5 LO1 NATURE AND IMPORTANCE OF MARKETING CHANNELS THE VALUE CREATED BY INTERMEDIARIES  Marketing Channel  Functions Performed by Intermediaries • Transactional Function • Logistical Function • Facilitating Function  Utilities Received by Consumers 12­6 FIGURE 12-2 Marketing channel intermediaries perform three functions, each consisting of different activities 12­7 CHANNEL STRUCTURE & ORGANIZATION LO2 MARKETING CHANNELS FOR CONSUMER PRODUCTS AND SERVICES  Direct Channel  Indirect Channel • Retailers • WholesalersRetailers • AgentsWholesalersRetailers 12­8 FIGURE 12-3 Common marketing channels for consumer products and services by the kind and number of intermediaries 12­9 CHANNEL STRUCTURE & ORGANIZATION LO2 MARKETING CHANNELS FOR BUSINESS PRODUCTS AND SERVICES  Direct Channel  Indirect Channel • Industrial Distributor • Agents • AgentsIndustrial Distributors 12­10 LO4 TWO CONCEPTS OF LOGISTICS MANAGEMENT IN A SUPPLY CHAIN  Total Logistics Cost Concept  Customer Service Concept 12­33 FIGURE 12-9 Supply chain managers balance five total logistics cost factors against four customer service factors 12­34 LO4  KEY FUNCTIONS IN A SUPPLY CHAIN CUSTOMER SERVICE FACTORS Time • Lead Time  Order Cycle Time  Replenishment Time • Quick Response • Efficient Consumer Response 12­35 LO4 KEY FUNCTIONS IN A SUPPLY CHAIN CUSTOMER SERVICE FACTORS  Dependability  Communication  Convenience • Vendor-Managed Inventory (VMI) 12­36 LO4 KEY FUNCTIONS IN A SUPPLY CHAIN TOTAL LOGISTICS COST FACTORS  Third-Party Logistics Providers  Transportation Mode Service Criteria • Cost • Dependability • Time • Accessibility • Capability • Frequency 12­37 FIGURE 12-B Advantages and disadvantages of five transportation modes 12­38 LO4  KEY FUNCTIONS IN A SUPPLY CHAIN TRANSPORTATION MODES Railroads • Unit Train • Intermodal Transportation  Piggyback or Trailer on Flat Car  Containers 12­39 LO4 KEY FUNCTIONS IN A SUPPLY CHAIN TRANSPORTATION MODES  Motor Carriers (Trucks)  Air Carriers and Express Companies  Freight Forwarders 12­40 LO4 KEY FUNCTIONS IN A SUPPLY CHAIN TRANSPORTATION MODES  Pipelines  Water Carriers 12­41 LO4 KEY FUNCTIONS IN A SUPPLY CHAIN WAREHOUSING AND MATERIALS HANDLING  Storage Warehouses  Distribution Centers  Materials Handling 12­42 LO4 KEY FUNCTIONS IN A SUPPLY CHAIN ORDER PROCESSING  Stages of Order Processing  Electronic Data Interchanges (EDI)  Extranet 12­43 LO4 KEY FUNCTIONS IN A SUPPLY CHAIN INVENTORY MANAGEMENT  Reasons for Inventory  Inventory Costs • Capital Costs • Storage Costs • Inventory Service Costs • Risk Costs 12­44 LO4  KEY FUNCTIONS IN A SUPPLY CHAIN INVENTORY MANAGEMENT Supply Chain Inventory Strategies • Just-in-Time (JIT) Concept 12­45 LO4  CLOSING THE LOOP: REVERSE LOGISTICS Reverse Logistics UPS Video 12­46 MAKING RESPONSIBLE DECISIONS Reverse Logistics and Green Marketing Go Together at Hewlett-Packard: Recycling e-Waste LO4 12­47 ... and logistics management are and how they relate to marketing strategy 12 3 CALLAWAY GOLF: DESIGNING AND DELIVERING THE GOODS FOR GREAT GOLF 12 4 FIGURE 12- 1 The variety of terms used for marketing... Supply Chain with Marketing Strategy • Understand the Customer • Understand the Supply Chain • Harmonize the Supply Chain with the Marketing Strategy 12 30 MARKETING MATTERS LO4 IBM’s Integrated Supply... Agents • AgentsIndustrial Distributors 12 10 FIGURE 12- 4 Common marketing channels for business products and services by the kind and number of intermediaries 12 11 CHANNEL STRUCTURE & ORGANIZATION