Lecture Marketing (12/e): Chapter 15 – Kerin, Hartley, Rudelius

Chapter 15 – Managing marketing channels and supply chains. After reading chapter 15, 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.

Copyright © 2015 McGraw­Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw­Hill Education LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 15, YOU SHOULD BE ABLE TO: LO 15-1 LO 15-2 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 15­2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 15, YOU SHOULD BE ABLE TO: LO 15-3 Describe factors that marketing executives consider when selecting and managing a marketing channel LO 15-4 Explain what supply chain and logistics management are and how they relate to marketing strategy 15­3 CALLAWAY GOLF: DESIGNING AND DELIVERING THE GOODS FOR GREAT GOLF 15­4 FIGURE 15-1 The variety of terms used for marketing intermediaries that vary in specificity and use in consumer and business markets 15­5 NATURE AND IMPORTANCE OF MARKETING CHANNELS LO 15-1 THE VALUE CREATED BY INTERMEDIARIES  Marketing Channel  Functions Intermediaries Perform  • Transactional Function • Logistical Function • Facilitating Function Utilities Consumers Receive 15­6 FIGURE 15-2 Marketing channel intermediaries perform three functions, each consisting of different activities 15­7 MARKETING CHANNEL STRUCTURE AND ORGANIZATION LO 15-2 MARKETING CHANNELS FOR CONSUMER OFFERINGS  Direct Channel  Indirect Channel • Retailers • WholesalersRetailers • AgentsWholesalersRetailers 15­8 FIGURE 15-3 Common marketing channels for consumer products and services by the kind and number of intermediaries 15­9 MARKETING CHANNEL STRUCTURE AND ORGANIZATION LO 15-2 MARKETING CHANNELS FOR BUSINESS OFFERINGS  Direct Channel  Indirect Channel • Industrial Distributor • Agents • AgentsIndustrial Distributors 15­10 LO 15-4 TWO CONCEPTS OF LOGISTICS MANAGEMENT IN A SUPPLY CHAIN  Total Logistics Cost Concept  Customer Service Concept 15­34 FIGURE 15-10 Supply chain managers balance six total logistics cost factors against four customer service factors 15­35 LOGISTICS MANAGEMENT IN A SUPPLY CHAIN LO 15-4 CUSTOMER SERVICE FACTORS  Time • Order Cycle Time • Replenishment Time • Inventory Delivery Systems  Quick Response  Efficient Consumer Response 15­36 LOGISTICS MANAGEMENT IN A SUPPLY CHAIN LO 15-4 CUSTOMER SERVICE FACTORS  Dependability  Communication  Convenience • Vendor-Managed Inventory (VMI) 15­37 LOGISTICS MANAGEMENT IN A SUPPLY CHAIN LO 15-4 TOTAL LOGISTICS COST FACTORS  Third-Party Logistics Providers  Transportation Mode Service Criteria • Cost • Dependability • Time • Accessibility • Capability • Frequency 15­38 FIGURE 15-A Advantages and disadvantages of five transportation modes 15­39 LOGISTICS MANAGEMENT IN A SUPPLY CHAIN LO 15-4 TOTAL LOGISTICS COST FACTORS—TRANSPORTATION  Railroads • Unit Train • Intermodal Transportation  Piggyback or Trailer on Flat Car  Containers 15­40 LO 15-4 TWO CONCEPTS OF LOGISTICS MANAGEMENT IN A SUPPLY CHAIN TOTAL LOGISTICS COST FACTORS—TRANSPORTATION  Motor Carriers (Trucks)  Air Carriers and Express Companies  Freight Forwarders 15­41 LO 15-4 TWO CONCEPTS OF LOGISTICS MANAGEMENT IN A SUPPLY CHAIN TOTAL LOGISTICS COST FACTORS—TRANSPORTATION  Pipelines  Water Carriers 15­42 LO 15-4 TWO CONCEPTS OF LOGISTICS MANAGEMENT IN A SUPPLY CHAIN TOTAL LOGISTICS COST FACTORS— WAREHOUSING AND MATERIALS HANDLING  Storage Warehouses  Distribution Centers  Materials Handling 15­43 LO 15-4 TWO CONCEPTS OF LOGISTICS MANAGEMENT IN A SUPPLY CHAIN TOTAL LOGISTICS COST FACTORS—ORDER PROCESSING  Stages of Order Processing  Electronic Data Interchanges (EDI)  Extranet 15­44 TWO CONCEPTS OF LOGISTICS MANAGEMENT IN A SUPPLY CHAIN LO 15-4 TOTAL LOGISTICS COST FACTORS—INVENTORY MGMT  Reasons for Inventory  Inventory Costs  • Capital Costs • Storage Costs • Inventory Service Costs • Risk Costs Supply Chain Inventory Strategies • Just-in-Time (JIT) Concept 15­45 LO 15-4  CLOSING THE LOOP: REVERSE LOGISTICS Reverse Logistics UPS Video 15­46 LO 15-4 MAKING RESPONSIBLE DECISIONS Reverse Logistics and Green Marketing Go Together at HP: Recycling E-Waste 15­47 VIDEO CASE 15 AMAZON: DELIVERING THE GOODS… MILLIONS OF TIMES A DAY! 15­48 ... Multichannel Marketing • Direct Marketing • Multichannel Marketing 15 12 FIGURE 15- 5 Consumer electronic marketing channels are similar to those for consumer products and services 15 13 LO 15- 2 MARKETING. .. AgentsWholesalersRetailers 15 8 FIGURE 15- 3 Common marketing channels for consumer products and services by the kind and number of intermediaries 15 9 MARKETING CHANNEL STRUCTURE AND ORGANIZATION LO 15- 2 MARKETING. .. 15 10 FIGURE 15- 4 Common marketing channels for business products and services by the kind and number of intermediaries 15 11 MARKETING CHANNEL STRUCTURE AND ORGANIZATION LO 15- 2  Internet Marketing