479 Test 3: Marketing Channels, delivering customer value

4 channel management decisions

Selecting channel members -> managing channel members ->motivating channel members -> evaluating channel members

Identifying major alternatives in Channel Design

-types of intermediaries -number of intermediaries -responsibilities of each channel member

Marketing logistics

(physical distribution) =planning, implementing, and controlling the physical flow of goods, services, and related information form points of origin to points of consumption to meet consumer requirements at a profit

Inventory Management

-JIT systems -RFID >know exact product location -Smart Shelves >placing orders automatically

What are the 5 types of flows that connect channel members

-Physical flow of products -Flow of ownership -Payment flow -Information flow -Promotion flow

4 Major Logistics Functions

-Warehousing -Transportation -Inventory management -logistics information management

Transportation

-affects the pricing of products, delivery performance, and condition of the goods when they arrive

What to look for when designing international distribution channels

-channel systems can vary from country to country -must be able to adapt channel strategies to the existing structure within each country

Intermediaries

-create greater efficiency for the producer by make goods available to target markets -offer the firm more than it can achieve on its own (such as contacts, experience, specialization, and scale of operations) -from an economic view, intermediaries transform the assortment of product into assortments wanted by consumers -channel members add value by bridging the major time, place, ad possession gaps that separate goods and service from those who would use them

Each alternative should be evaluated against?

-economic criteria -control -adaptive criteria

Warehousing Decisions

-how many -what types -location -distribution centers

Decisions to make in setting channel objectives

-what segments to serve -best channels to use -targeted levels of customer service -minimizing the cost of meeting customer service requirements

Tying Agreements

=agreements where the dealer must take most or all of the line

Supply Chain Management

=process of managing upstream and downstream value-added flows of materials, final goods, and related info among suppliers, the company, resellers, and final consumers

Third-party logistics

=the outsourcing of logistics functions to third-party logistics providers

Multichannel Distribution Systems (Hybrid Marketing Channels)

=when a single firm sets up two or more marketing channels to reach one or more customer segments

Disintermediation

=when product or service producers cut out intermediaries and go directly to final buyers, or when radically new types of channel intermediaries displace traditional ones

Exclusive Distribution

=when the seller allows only certain outlets to carry its products

Exclusive Dealing

=when the seller requires that the sellers not handle competitor's products

Horizontal Marketing Systems

=when two or more companies at one level join together to follow a new marketing opportunity. Companies combine financial, product, or marketing resources to accomplish more than any one company could alone.

Exclusive Territorial Agreements

=where producer or seller limit territory

Intensive Distribution

candy and toothpaste

Marketing Channel

consists of firms that have partnered for their common good with each member playing a specialized role

Contractual Vertical Marketing System

consists of independent firms at different levels of production and distribution who join together through contracts to obtain more economies or sales impact than each could achieve alone. The most common form is the franchise organization

Upstream Partners

include raw material suppliers, components, parts, information, finances, and expertise to create a product or service

Downstream Partners

include the marketing channels or distribution channels that look toward the customer

Corporate Vertical Marketing System

integrates successive stages of production and distribution under single ownership

Exclusive Distribution

luxury automobiles and prestige clothing

Channel Conflict

refers to disagreement over goals, roles, and rewards by channel members

Selective Distribution

television and home appliance

Value Delivery Network

the firm's suppliers, distributors, and ultimately customers who partner with each other to improve the performance of the entire system

How are marketing channels connected?

through 5 types of flows