Marketing Management Marketing 5341 MANAGING MARKETING CHANNELS OF DISTRIBUTION AND LOGISTICS.
Chapter 8 Distribution channels and logistics management.
-
Upload
ernest-casey -
Category
Documents
-
view
250 -
download
8
Transcript of Chapter 8 Distribution channels and logistics management.
![Page 1: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/1.jpg)
Chapter 8 Distribution channels and logistics management
![Page 2: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/2.jpg)
The learning objectives
The nature of distribution channels Channel behavior and organization Channel design decisions Channel management decision Physical distribution and logistics management
![Page 3: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/3.jpg)
1.The nature of distribution channels
What is distribution? Why are marketing intermediaries used? The function of distribution channel Channel level
![Page 4: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/4.jpg)
What is distribution channel?
A set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user.
![Page 5: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/5.jpg)
How a Distributor Reduces theNumber of Channel Transactions
= Customer= Customer= Manufacturer= Manufacturer
A. Number of contacts A. Number of contacts without a distributorwithout a distributor
M x C = 3 X 3 = 9M x C = 3 X 3 = 9
11
3322
445566
778899
![Page 6: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/6.jpg)
How a Distributor Reduces theHow a Distributor Reduces theNumber of Channel TransactionsNumber of Channel Transactions
= Distributor= Distributor= Customer= Customer= Manufacturer= Manufacturer
B. Number of contacts B. Number of contacts with a distributorwith a distributorM x C = 3 + 3 = 6M x C = 3 + 3 = 6
Store
11
22
33
44
55
66
![Page 7: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/7.jpg)
Distribution Channel FunctionsDistribution Channel Functions
OrderingOrdering
PaymentsPayments
CommunicationCommunicationTransferTransfer
NegotiationNegotiation
FinancingFinancingRisk TakingRisk Taking
PhysicalDistribution
PhysicalDistribution
InformationInformation
![Page 8: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/8.jpg)
Consumer Marketing ChannelsConsumer Marketing Channels
WholesalerWholesaler JobberJobber RetailerRetailer ConsumerConsumer
ConsumerConsumer
RetailerRetailer ConsumerConsumer
ManufacturerManufacturer
0-level channel
WholesalerWholesaler RetailerRetailer ConsumerConsumer MfgMfg
2-level channel
MfgMfg
3-level channel
1-level channel
ManufacturerManufacturer
![Page 9: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/9.jpg)
Industrialdistributors
Man
ufa
ctu
rer
Co
nsu
mer
Manufacturer’srepresentative
Manufacturer’ssales branch
Industrial Marketing Channels
![Page 10: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/10.jpg)
Customers’ Desired Service Levels
Lot size Waiting time Spatial convenience Product variety Service backup
![Page 11: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/11.jpg)
Why are marketing intermediaries used?
![Page 12: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/12.jpg)
Distribution channel function
Information Promotion Contact Matching negotiation
![Page 13: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/13.jpg)
Channel level
![Page 14: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/14.jpg)
Channel behavior and organization
Channel conflict Vertical marketing system Horizontal marketing system Hybrid marketing systems
![Page 15: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/15.jpg)
Types of Vertical Marketing SystemsTypes of Vertical Marketing Systems
CorporateCommon Ownership at Different
Levels of the Channel
CorporateCommon Ownership at Different
Levels of the Channel
ContractualContractual Agreement Among
Channel Members
ContractualContractual Agreement Among
Channel Members
AdministeredLeadership is Assumed by One or
a Few Dominant Members
AdministeredLeadership is Assumed by One or
a Few Dominant Members
![Page 16: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/16.jpg)
Conventional Distribution Channel vs. Vertical Marketing Systems
VerticalVerticalmarketingmarketingchannelchannel
Manufacturer
Retailer
ConventionalConventionalmarketingmarketingchannelchannel
Consumer
Manufacturer
Consumer
Retailer
Wholesaler
Wh
ole
sale
r
![Page 17: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/17.jpg)
Channel conflict
Horizontal conflict Vertical conflict
![Page 18: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/18.jpg)
Vertical marketing systems
Conventional distribution VMS Corporate VMS Contractual VMS Administered VMS Franchise organization
![Page 19: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/19.jpg)
Horizontal marketing system
![Page 20: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/20.jpg)
Hybrid marketing channel
![Page 21: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/21.jpg)
2.channel design decision
Analyzing consumer service needs Setting channel objectives and constraints Identifying major alternatives Evaluating the major alternatives
![Page 22: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/22.jpg)
Identifying major alternative
Types of intermediaries Number of marketing intermediaries Responsibilities of channel members
![Page 23: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/23.jpg)
SellingSellingcostscosts
(dollars)(dollars)
Level of sales (dollars)Level of sales (dollars)
Break-Even Cost Chart
CompanyCompanysales forcesales force
Manufacturer’s Manufacturer’s sales agencysales agency
SSBB
![Page 24: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/24.jpg)
Number of marketing intermediaries
Intensive distribution Exclusive distribution Selective distribution
![Page 25: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/25.jpg)
3.Channel management Decision
Selecting channel members Motivating channel members Evaluating channel members
![Page 26: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/26.jpg)
Channel Management DecisionsChannel Management Decisions
SelectingSelecting
FE
ED
BA
CK
MotivatingMotivating
TrainingTraining
EvaluatingEvaluating
![Page 27: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/27.jpg)
4.physical distribution and logistics management
Physical distribution(marketing logistics) major logistics function Integrated logistics management Third-party logistics
![Page 28: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/28.jpg)
Major logistics function
Order processing Warehousing Inventory transportation
![Page 29: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/29.jpg)
Integrated logistics management
Cross-functional teamwork inside the company Building channel partnerships
![Page 30: Chapter 8 Distribution channels and logistics management.](https://reader033.fdocuments.us/reader033/viewer/2022061616/56649d925503460f94a786cb/html5/thumbnails/30.jpg)
Third-party logistics
An independent logistics provider that performs any or all of the functions required to get their clients’ product to market.