Team Leaders
description
Transcript of Team Leaders
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Team LeadersKeep everyone on taskLead discussionsKeep area clean/all papers up at the end of
the dayPass out and get all supplies when need for
table activitiesQuestions? Table leader asks teacherStart w/ 100; points deducted for not
leading tableChanges every week
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Marketing 3.07Acquire foundational knowledge of channel
management to understand its role in marketing
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What is channel management? Controlling the movement of the
product(s) through the system. Logistics deals with the movement of
goods and timing of the deliveriesDistribution involves the movement,
storage and inventory control of the product(s).
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What is a channel?The path (channel) a product travels
from the producer (manufacturer) to the ultimate consumer
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MARKETING MIX & FUNCTIONS
Remember the Marketing Mix?Remember the 6 functions?________ MGMT = _________
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Channel management decisions
Select channel membersManage and motivate channel membersEvaluate channel membersWhat is the best means to distribute the
product?
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Who is an intermediary (middleman)?
Channel members who assist the producer in getting the goods and services to the final user
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ACTIVITY 1Get with your 10 o’clock and get a Marketing Essential book and got to pp 376-377Various intermediaries include Wholesalers Retailers Agents Define and give a Complete example
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What is a direct channel?Distribution that occurs directly
from the producer to the consumer For example: A consumer buys
apples from an apple farmer Cuts out the middleman
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What is an indirect channel?Distribution that occurs through
one or more intermediaries before reaching the final user
For example: The apple farmer sells his apples to Harris Teeter and Harris Teeter sells them to the consumer
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Indirect channel is used….
When a producer doesn’t want responsibility for the selling activities of a large retailerProducer to agent to retailer to consumer
Because wholesalers usually buy in large quantitiesProducer to wholesaler to retailer to consumer
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Transportation is…
Physically moving from Place A Place BMethods include:
Trucking or motor carriers Railroads Marine shipping Pipelines Air cargo services
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Inventory is…..
Storing of merchandise before it is soldPerpetual inventory controlPhysical inventory control
Methods for checking inventoryBlind check method Direct check method Spot check method Quality check method
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ACTIVITY 2Get with your 7 o’clock appointmentsComplete “Channels of Distribution Match Up”You have 15 minutes
Choices Direct or indirect (as a group)Consumer goods, industrial goods,
wholesaler, retailer, producer, or consumerWhatever term fits the scenario, write –
should at least have two in each category
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Purpose of channel membersChannel members add value to a product by
performing certain channel activities expertlyMarketingPackagingFinancingStorageDeliveryMerchandisingPersonal selling
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Distribution planning involves…
Decisions about a product’s physical movement and transfer of ownership from producer to consumer.
Some of the major considerations are:Multiple channelsControl vs. costsIntensity of distribution desiredInvolvement in e-commerce
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Multiple channels….
Some products meet the needs of both industrial and consumer markets.
J & J Snack Foods sells its pretzels, drinks and cookies using multiple channels to:SupermarketsMovie TheatersStadiumsSchoolsHospitals
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Distribution IntensityDistribution intensity is how widely a
product will be distributed; marketers want to achieve the ideal market exposureExclusive distribution – protected territories
for distribution of a product in a given geographic area; business maintains tight control over a product
Ex. Franchisor legally requires a franchisee to sell only the franchisor’s productsIntegrated distribution is where the manufacturer
acts as wholesaler and retailer for its own products. Ex. The Gap sells its clothing in company-owned retail stores.
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Distribution IntensitySelective distribution – a limited number of
outlets in a given geographical area are used to sell the product.
Very important to select channel members that can maintain the image of the product and are good credit risks, aggressive marketers and good inventory planners.
Ex. Dana Buckman sells its clothing only through top department stores that appeal to the affluent customers who buy its merchandise. It does not sell in a chain megastore or a variety store.
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Distribution Intensity
Intensive distribution – the use of all suitable outlets to sell a product.
The objective is complete market coverage and the ultimate goal is to sell to as many customers as possible, wherever they choose to shop.
Ex. Motor oil is sold in quick-lube shops, farm stores, auto parts retailers, supermarkets, drugstores, hardware stores, warehouse clubs, and other mass merchandisers.
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Dual distribution
A manufacturer may sell its products through multiple outlets at the same time:Toll-free phone systemCompany websiteMultiple retailers
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Horizontal and Vertical Conflict
Horizontal Conflict: occurs between channel members at the same levelGood, old-fashioned business competitionEx: two retailers selling pet supplies compete to
sell to the same target marketVertical Conflict: occurs between
channel members at different levels within the same channelProducers and wholesalers or producers and
retailers
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Customer service and appropriate channel management
Ensures timely delivery of productsEffective communication is important
Order processingCorrect shipping informationCorrect productsHandling complaintsReducing the probability of complaintsNice and friendly people
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Customer Service and Channel ManagementGrey-market strategy – selling product
in foreign countries for a lower price than customers can get domestically
Full-line forcing - Producer or supplier insistence that the dealer must carry the full range of products in the line. This policy may not be illegal if it can be established that it serves a legitimate business need.
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Bad Customer service and Channel ManagementVendor consistently has back orders
Product not available when ordered Coercion – large business threatening
to stop using a supplier unless given major concessionsTying agreement - Purchase agreement in
which the customer is forced to purchase a slow-selling or unknown brand or product with a fast-selling or well known one. Such coercion is usually illegal.
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Use of Technology in Distribution
Some businesses have the capacity to distribute most or all of their products through the internete-commerce: Products are sold to customers
and industrial buyers through the Internet.e-marketplace
Satellite tracking = a dispatcher has current knowledge of a delivery truck’s location and destination
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Use of Technology in Distribution
Tracking of packageBar coding on packagePackage scanned at transition points in
distribution chainCustomer uses internet to follow package along
distribution chain; e-mail may be usedGlobal distribution: in some countries the postal
service is not reliable; package tracking facilitates global trade
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WHAT’S NEXT?CONTINUE TO WORK ON GUM
PROJECT DUE TOMORROW!NOTE:
STAY FOCUSED ON YOUR GROUPNO EXTRA TIME AND EXCUSES WILL BE
GIVEN TOMORROWPRACTICE, PRACTICE, PRACTICE!
PROJECT SHOULD BE MEMORIZED AND YOU SHOULD BE COMPLETELY PREPARED!
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Activity 3Get with your 3 o’clock Complete 3.07 ReviewWe will review 3.00
questions in 10 minutes!
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C1. Sales begin to level off on a 5 year old product because customers are purchasing the competitor's brand. What strategy would be most appropriate to use in this situation? A. Take the product off the marketB. Do nothing; fluctuations in sales are commonC. Modify the product to renew customer interestD. Triple the advertising budget for the product
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D2. Which activity is addressed in the product/service management function? A. Setting discounts to clear products from inventoryB. Determining where products will be offered for saleC. Focusing promotions on a new-product releaseD. Eliminating products that are slow sellers
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B3. Which of the following is a way that a business can extend the life cycle of an established product?
A. By promoting the product to current users B. By finding new uses for the product C. By restricting distribution D. By attracting consumers who are innovators
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D4. Why does a company need to know what stage of the product life cycle its products are in?
A. To prevent imitators from entering the market B. To find new uses for the product C. To predict the length of the life cycle D. To adapt its marketing strategies
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C5. Why might profits sometimes decline for the company that first introduced the product during the growth stage of a product's life cycle?
A. Because sales decline in the growth stage B. Because marketing strategies are adjusted C. Because competitors have entered the market D. Because production is more efficient
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D6. What is a technologically advanced method that allows businesses to produce products that are?
A. Intermittent conversion B. Automatic production C. Computerized robotics D. Mass customization
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B7. What is one way businesses use computer technology to obtain information to improve their product/service mix?
A. Mailing questionnaires to customers B. Tracking visitors to their web sites C. Compiling detailed databases D. Preparing interactive software programs
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B8. What is an example of an ethical issue that a product/service manager might face?
A. Use of color on the label B. Use of environmentally friendly packaging C. Use of packaging as a means of promotion D. Use of nutrition information on a food label
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B9. Why is the quality level of a product an important product/service management decision?
A. It identifies a product's brand. B. It reflects the image of the business. C. It protects the consumers. D. It refers to the way the product works.
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B10. A company advertises that its products are durable lightweight, and come in a variety of colors. What strategy is the company using to position its product? A. Price and quality B. Features and benefits C. Unique characteristics D. Relationship to other products
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D11. "Great taste, great price" is what product positioning strategy?
A. Relationship to other products B. Features and benefits C. Unique characteristics D. Price and quality
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A12. In what stage of brand loyalty do people become aware of the brand?
A. Recognition B. Satisfaction C. Insistence D. Preference
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C13. What costs do businesses usually include in the price of their products? A. Regulations B. Inflation C. Transportation D. Orientation
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D14. What would be the most appropriate pricing strategy for a business in a small town where unemployment has skyrocketed and the economy is in a downturn?
A. Below-cost pricing B. High-level pricing C. Odd-cents pricing D. Flexible pricing
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C15. What is the advantage to a business of using bar-code pricing?
A. Easier for customers to read B. Reduces required business security C. Easier to change prices
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A16. A business charges a small company a higher price for a product than it charges a large company What does this represent?
A. Price discrimination B. Controlled pricing C. Price competition D. Regulated pricing
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B17. A group of companies recently decided to sell their products for the same price. In what unethical activity are the businesses engaging? A. Bait-and-switch B. Price fixing C. Loss-leader pricing D. Gray markets
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C18. What is an external factor that affects the price that a business charges for its products? A. Operating costs B. Variable expenses C. Economic conditions D. Employee benefits
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A19. What do marketers want to achieve by determining distribution intensity? A. Ideal market exposure B. Complete market coverage C. Perfect market balance D. Total market saturation
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D20. Which of the following is an aspect of channel management that impacts customer service?
A. Advertising B. Taxes C. Protectionism D. Timeliness
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C21. What is one action that customer service can take to facilitate order processing?
A. Negotiate aggressively B. Oversee assembly C. Communicate effectively D. Monitor inventory
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B22. What indirect channel of distribution is used to reach large retailers when the producer doesn’t want responsibility for the selling activities? A. Producer to wholesaler to retailer to consumerB. Producer to agent to retailer to consumerC. Producer to wholesaler to consumerD. Producer to consumer
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C23. What factor could determine legal ownership of goods in the distribution process?
A. Country in which the product is produced B. Availability of the product C. Involvement of agents D. Physical characteristics of the product
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D24. What legal example is represented by a manufacturer selling its products through a toll-free phone system, a company web site, and several retailers?
A. Restricted sales territories B. Exclusive dealing C. Tying agreements D. Dual distribution
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C25. What is an example of a large business using coercion in the distribution channel A. Buying products from unauthorized intermediaries
B. Requiring a specific type of packaging material
C. Threatening to stop using a supplier unless given a major concession
D. Returning shipments w/o proper authorization