marketing princiles unit 9 place

Unit Place: distribution strategies that balance coverage and control CuuDuongThanCong.com https://fb.com/tailieudientucntt R d Map: Road M Previewing P i i the th Concepts C t  Explain why companies use distribution channels and discuss the functions these channels perform  Discuss how channel members interact and how they organize to perform the work of the channel  Identify the major channel alternatives open to a company  Explain how companies select, motivate, and evaluate channel members  Discuss the nature and importance of marketing logistics and supply chain management CuuDuongThanCong.com https://fb.com/tailieudientucntt What is place?  Pl Place or di distribution ib i strategy is i about b making ki products available to customers when and prefer to evaluate,, select,, buy, y, where theyy p consumer and dispose of them  Distribution channels are the means by which products flow from producer/provider to customer/consumer /  “Where” and “When” decisions are critical CuuDuongThanCong.com https://fb.com/tailieudientucntt Wh t iis a Distribution What Di t ib ti Channel? Ch l? Set of interdependent organisations involved in the process of making a product or service available for use or consumption by the consumer or business user user CuuDuongThanCong.com https://fb.com/tailieudientucntt Why are Marketing Intermediaries Used?  The use of intermediaries results from their greater efficiency in making goods available to target markets  Offers the firm more than it can achieve on its own through the intermediaries:     Contacts, Experience, Specialisation, Scale of operation operation  Purpose: match supply from producers to demand from consumers CuuDuongThanCong.com https://fb.com/tailieudientucntt A Distributor Reduces the Number of Channel Transactions (Fig 11-1) CuuDuongThanCong.com https://fb.com/tailieudientucntt Key Channel Attrbutes  Economics E i  Recognises exactly where the costs and profits of each distribution alternative are, or should be, made in any channel  Coverage  Optimises the availability of the product to the targeted segments  Control  O Optimum i distribution di ib i to customers whilst hil not surrendering too much decision-making authority over the value proposition to other members of the channel channel CuuDuongThanCong.com https://fb.com/tailieudientucntt Distribution Channel Functions These Functions Should be Assigned to the Channel Member Who Can Perform Them Most Efficiently and Effectively Risk Taking Information Financing Promotion Physical Distribution Contact Negotiation CuuDuongThanCong.com Matching https://fb.com/tailieudientucntt  List and briefly discuss the marketing channel functions that are involved in completing and fulfilling transactions c functions u ct o s app applyy most ost in eac each o of tthe e  Which following situations?  A retailer puts in a rush re-order for a needed Tết item that is in short supply  An Internet marketer seeks ways to identify and contact its market market CuuDuongThanCong.com https://fb.com/tailieudientucntt Number of Channel Levels 10 CuuDuongThanCong.com https://fb.com/tailieudientucntt Channel Behaviour & Organization  The channel will be most effective when:  each member is assigned tasks it can best  all members cooperate to attain overall channel goals and satisfy the target market  When e tthiss does doesn’tt happen, appe , conflict co ct occu occurs: s  Horizontal Conflict occurs among firms at the same level of the channel, i.e retailer to retailer  Vertical Conflict occurs between different levels of the same channel, i.e wholesaler to retailer  Each channel member’s role must be specified and conflict mustt b be managed d 11 CuuDuongThanCong.com https://fb.com/tailieudientucntt Conventional Distribution Channel Vs a Vertical Marketing System 12 CuuDuongThanCong.com https://fb.com/tailieudientucntt Innovations in Marketing Systems Horizontal Marketing System T Two or More M Companies C i at One Channel Level Join Together to Follow a New Marketing Opportunity Example: Ni Ninomaxx in i Diamond Di d Plaza, Highlands Coffee inside Bookstore Hybrid Marketing System A Single Firm Sets Up Two or More Marketing Channels to Reach One or More Customer Segments Example: Retailers, Catalogs, and Sales Force 13 CuuDuongThanCong.com https://fb.com/tailieudientucntt Hybrid Marketing Channel 14 CuuDuongThanCong.com https://fb.com/tailieudientucntt Changing g g Channel Organisation g A Major j Trend is Toward Disintermediation Which Means that Product and Service Producers are Bypassing Intermediaries and Going Directly to Final Buyers or That New Types of Channel Intermediaries are Emerging to Displace Traditional Ones Ones 15 CuuDuongThanCong.com https://fb.com/tailieudientucntt Channel Design Decisions Analysing Consumer Service Needs Setting Channel Objectives & Constraints Identifying Major Alternatives Types of Intermediaries Number of Intermediaries Responsibilities of Intermediaries Evaluating l the h Major Alternatives l Designing g g International Distribution Channels 16 CuuDuongThanCong.com https://fb.com/tailieudientucntt Number of Marketing Intermediaries Intensive Di t ib ti Distribution Selective Distribution Exclusive Distribution 17 CuuDuongThanCong.com https://fb.com/tailieudientucntt  Decide which distribution strategy-gy intensive, selective, or exclusive is used for the following products, and why:      KFC Chicken Burger B ge Aquafina Bottles (Small) g Shoes Nike Running Bottled Cooking Gas Honda Dream 18 CuuDuongThanCong.com https://fb.com/tailieudientucntt Channel Management Decisions Moti ating Channel Members Motivating Membe s FEEDBACK Selecting Channel Members Evaluating Channel Members 19 CuuDuongThanCong.com https://fb.com/tailieudientucntt Supply Chain Management 20 CuuDuongThanCong.com https://fb.com/tailieudientucntt Goals of the Logistics System g y Higher Distribution Costs; Hi h Customer Higher C t Service S i Levels Goal: To Provide a Targeted Level of Customer Service L tC t att th the Least Cost Lower Distribution Costs; Lower Customer Service Levels 21 CuuDuongThanCong.com https://fb.com/tailieudientucntt Major j Logistics g Functions Order Processing Received Processed Shipped Costs Minimize Costs of Attaining Logistics Objectives Logistics Transportation T t ti Rail, Truck, Water, Pipeline, Ai Intermodal Air, I d l Functions Inventory When to order How much to order Just-in-time Warehousing Storage Distribution Automated 22 CuuDuongThanCong.com https://fb.com/tailieudientucntt Integrated Logistics Management  C Concept Recognises i that h Providing idi Better Customer Service and Trimming Distribution Costs Requires Teamwork, Both Inside the Company and Among All the Marketing Channel Organizations  Involves:  Cross-functional teamwork inside the company  Building channel partnerships  Third-party logistics 23 CuuDuongThanCong.com https://fb.com/tailieudientucntt Rest Stop: Reviewing the Concept  Explain l why h companies use distribution d b channels h l and discuss the functions these channels perform  Discuss Di how h channel h l members b interact i t t and d how h they organise to perform the work of the channel  Identify the major channel alternatives open to a company  Explain how companies select, select motivate, motivate and evaluate channel members  Discuss the nature and importance of marketing logistics and supply chain management 24 CuuDuongThanCong.com https://fb.com/tailieudientucntt ... to Follow a New Marketing Opportunity Example: Ni Ninomaxx in i Diamond Di d Plaza, Highlands Coffee inside Bookstore Hybrid Marketing System A Single Firm Sets Up Two or More Marketing Channels... Conventional Distribution Channel Vs a Vertical Marketing System 12 CuuDuongThanCong.com https://fb.com/tailieudientucntt Innovations in Marketing Systems Horizontal Marketing System T Two or More M Companies... Discuss the nature and importance of marketing logistics and supply chain management CuuDuongThanCong.com https://fb.com/tailieudientucntt What is place?  Pl Place or di distribution ib i strategy