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)
