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Prepared by Deborah Baker Texas Christian University

12. Marketing Channels and Supply Chain Management. Prepared by Deborah Baker Texas Christian University. Learning Objectives. 1. Explain what a marketing channel is and why intermediaries are needed

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Prepared by Deborah Baker Texas Christian University

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  1. 12 Marketing Channels and Supply Chain Management Prepared by Deborah Baker Texas Christian University

  2. Learning Objectives 1. Explain what a marketing channel is and why intermediaries are needed 2. Define the types of channel intermediaries and describe their functions and activities

  3. Learning Objectives (continued) 3. Describe the channel structures for consumer and business-to-business products and discuss alternative channel arrangements 4. Define supply chain management and discuss its benefits 5. Discuss the issues that influence channel strategy

  4. Learning Objectives (continued) • Explain channel leadership, conflict, and partnering • 7. Describe the logistical components of the supply chain • 8. Discuss new technology and emerging trends in supply chain management

  5. Learning Objectives (continued) 9. Discuss channels and distribution decisions in global markets 10. Identify the special problems and opportunities associated with distribution in service organizations

  6. Marketing Channel A set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer. Supply Chain The connected chain of all the business entities, both internal and external to the company, that perform or support the logistics function. Marketing Channels 1

  7. Marketing Channel Functions Specialization and division of labor Overcoming discrepancies Providing contact efficiency 1

  8. Quantity Assortment Time (Temporal) Place (Spatial) Overcoming Discrepancies 1

  9. Intermediaries Retailers Merchant Wholesalers Agents and Brokers Channel Intermediaries + Not all intermediaries take title to goods! 2

  10. Product characteristics Buyer considerations Market characteristics Factors Suggesting Type of Wholesaling Intermediary to Use 2

  11. Contacting/Promotion TransactionalFunctions Negotiating Risk Taking Physically distributing Logistical Functions Storing Sorting FacilitatingFunctions Researching Financing Channel Functions Performed by Intermediaries 2

  12. Multiple channels Nontraditional channels Strategic channel alliances Alternative Channel Arrangements 3

  13. Factors Affecting Channel Choice Level ofDistributionIntensity Market Factors Intensive Distribution Product Factors Selective Distribution Producer Factors Exclusive Distribution Channel Strategy Decisions 5

  14. Channel power Channel control Channel leadership Channel conflict Channel partnering Social Dimensions of Channels 6

  15. Sourcing & Procurement Production Scheduling SupplyChainTeam Order Processing & Customer Service Logistics Information System Inventory Control Warehouse & Materials Handling Transportation Integrated Logistical Components of the Supply Chain 7

  16. Plan purchasing strategies Develop specifications Select suppliers Negotiate price Negotiate service levels Role of Purchasing Departments 7

  17. Trends JIT MRP DRP Inventory Management 2

  18. Cost Transit Time Reliability Capability Accessibility Traceability Transportation Mode Choice 7

  19. Minimizing wait times Managing service capacity Improving service delivery Focus Areas for Service Distribution 10

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