Marketing ch 12-13

omnichannel marketing

- rebecca minkoff (screens in stores for trying things on)

2 concepts of logistics managementin a supply chain

- total logistics cost -customer service concept

customer service concept of logistics management

-Ability to Satisfy Users in Terms of Time, Dependability, Communication, and Convenience

total logistics cost concept

-Includes Expenses for Transportation, Warehouse and Materials Handling, Order Processing, Stockouts, Inventory and Return Products Handling

Marketing channel intermediaries perform 3x of functions; intermediaries are often referred to as "middlemen" between a manufacturer and end-user markets ... UPS Video: We love logistics!

3 functions: 1-transxl 2-logistical 3-facilitating

Common marketing channels for business products and services by the kind and number of intermediaries - in a direct channel all functions are performed by producers

A) Producer IBM to Industrial User B) Producer Caterpilar to Industrial Distributor to Industrial User C) Stake Fastening Company to Agent to Industrial User D) Harkman Electric to Agent to Industrial Distributor to Industrial User

Common marketing channels for consumer products and services: consider the impact of disintermediation - direct vs. indirect

A) Schwans food B) Toyota C) Mars D) Mansar Products

Video case- How Amazon delivers on one day free shipping

Amazon's supply chain management serves as an example of innovation driven by an understanding of the customer - but does it? where are customers asking for one day? - costs of it

transactional function

Buying: Selling: Risk Taking:

types of vertical marketing systems

Corporate VMS Contractual VMS - franchise -wholesaler sponsored voluntary chains -retailer sponsored cooperatives Administered VMS

customer service

Customer service is the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience.

exclusive distribution

Exclusive distribution is a level of distribution density whereby only one retailer in a specific geographical area carries the firm's products.

intensive distribution

Intensive distribution is a level of distribution density whereby a firm tries to place its products and services in as many outlets as possible.

selective distribution

Selective distribution is a level of distribution density whereby a firm selects a few retailers in a specific geographical area to carry its products.

retail life cycle

The retail life cycle describes the stage of growth and decline for retail outlets

total logistics cost

Total logistics cost consists of the expenses associated with transportation, materials handling and warehousing, inventory, stockouts (being out of inventory), order processing, and return products handling.

dealer

a more imprecise term than distributor that can mean the same as distributor, retailer, wholesaler, and so forth

distributor

an imprecise term, used to describe intermediaries who performa variety of distribution functions, including selling, maintaining inventories, extending credit, and so on; a more common termin business markets butmay also be used to refer to wholesalers

retailar

an intermediary who sells to consumers

wholesaler

an intermediary who sells to other intermediaries, usually to retailers; term usually applies to consumer markets

middleman

any intermediary between the manufacturer and end-user markets

agent or broker

any intermediary with legal authority to act on behalf of the manufacturer

logistical function (storing)

assembling and protecting products at a convenient location to offer better customer service

Logistical function

assorting, storing, sorting, transporting

transactional (risk taking)

assuming business risks in the ownership of inventory that can become obsolete or deteriorate

transactiional (selling)

contacting potential customers, promoting products, and seeking orders

logistical function (assorting)

creating product assortments from several sources to serve customers

facilitating function (financing)

extending credit to customers

facilitating function

financing, grading, marketing information and research

facilitating function (grading)

inspecting, testing, or judging products and assigning them quality grades

Marketing channel

mkg channel: Individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users

logistical function (transporting)

physically moving a product to customers

facilitating function (marketing information and research)

providing info to customers and suppliers, including competitive conditions and trends

logistical function (Sorting)

purchasing in large quantities and breaking into smaller amounts desired by customers

transactional (buying)

purchasing products for resale or as an agent for supply of a product

wheel of retailing

the wheel of retailing describes how outlets change over time

nontraditional retailing

•Automatic vending •Direct Mail •Catalogs •Home Shopping •Telemarketing •Direct Selling

Marketing channel choice & manag- factors imp channel choice

•Choose Channel - Target Market Coverage, Buyers' Requirements and Profitability •Target Market Coverage (Density) Intensive Distribution (mass market) Selective Distribution (mid-luxury like Coach and Apple) Exclusive Distribution (high luxury like Burberry)