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Marketing Management
Marketing 5341
MANAGING MARKETING CHANNELS OF DISTRIBUTION AND
LOGISTICS
The variety of terms used for marketing intermediaries that vary in use in consumer and business markets
Intermediaries minimize transactions and the cost of distribution for producers and customers
Marketing channel intermediaries perform three functions, each consisting of different activities
Common marketing channels for consumer offerings by the kind and number of intermediaries
Common marketing channels for business offerings by the kind and number of intermediaries
CHANNEL STRUCTURE & ORGANIZATIONELECTRONIC & DIRECT MARKETING CHANNELS;
MULTICHANNEL MARKETING
Electronic Marketing Channels
Direct Marketing Channels
Multichannel Marketing
Consumer electronic marketing channels are similar to those for consumer and business offerings
CHANNEL STRUCTURE & ORGANIZATIONDUAL DISTRIBUTION &
STRATEGIC CHANNEL ALLIANCES
Dual Distribution
Strategic Channel Alliances
HELP YOUR CHILD FEEL BETTER WITH TRIAMINIC® PRODUCTS AND A REDBOX
MOVIE RENTAL
1. Customers demand it.2. Market access.3. Lower marketing and selling expenses.4. Distributors perform necessary functions.5. Reduced collection problems.
The Top FiveReasons for Selling Through Distributors
Functions performed by independent wholesaler types
Three types of vertical marketing systems: corporate, contractual (most popular), and administered
McDonalds and H&R BlockWhat vertical marketing system does each use?
CHANNEL CHOICE AND MANAGEMENTCHANNEL CHOICE CONSIDERATIONS
Target Market Coverage
• Intensive Distribution
• Exclusive Distribution
• Selective Distribution
CHANNEL CHOICE AND MANAGEMENTCHANNEL CHOICE CONSIDERATIONS
Profitability
• Margins Earned
• Channel Costs
Global Dimensions of Marketing Channels
USING MARKETING DASHBOARDSChannel Sales and Profit at
Charlesburg Furniture
CHANNEL CHOICE AND MANAGEMENTCHANNEL RELATIONSHIPS
Legal Considerations
•Dual Distribution
•Vertical Integration
•Exclusive Dealing
•Tying Arrangements
•Refusal to Deal
•Resale Restrictions
The Clayton Act and Sherman Act place legal restrictions on specific marketing channel strategies and practices
SIGNIFICANCE OF SUPPLY CHAINAND LOGISTICS MANAGEMENT
KEY CONCEPTS
Logistics – getting the right amount of the right products to the right place at the right time at the lowest possible cost.
Logistics Management – the practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods from the point of origin to the point of consumption to satisfy customers requirements.
Relating logistics management and supply chain management to supplier networks and marketing channels
The automotive supply chain includes thousands of firms that provide the 5,000 or so parts in a typical car
Supply chain managers balance total logistics cost factors against customer service factors
Advantages and disadvantages of five modes of transportation
KEY LOGISTICS FUNCTIONSIN A SUPPLY CHAIN
TRANSPORTATION
Railroads
• Containers
• Intermodal Transportation
• Piggy-Back or Traileron Flatcar (TOFC)
KEY LOGISTICS FUNCTIONSIN A SUPPLY CHAIN
TRANSPORTATION
Motor Carriers
Air Carriers and Express Companies
Freight Forwarders/Express Companies
KEY LOGISTICS FUNCTIONSIN A SUPPLY CHAIN
TRANSPORTATION
Pipelines
Water
KEY LOGISTICS FUNCTIONSIN A SUPPLY CHAIN
WAREHOUSING AND MATERIALS HANDLING
Storage Warehouses
Distribution Centers
Materials Handling