LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 15, YOU SHOULD BE ABLE TO:
Explain what is meant by a marketing channel of distribution and why intermediaries are needed.
Distinguish among traditional marketing channels, electronic marketing channels, and different types of vertical marketing systems.
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Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.LO 15-2LEARNING OBJECTIVES (LO)AFTER READING CHAPTER 15, YOU SHOULD BE ABLE TO:LO 15-1Explain what is meant by a marketing channel of distribution and why intermediaries are needed.Distinguish among traditional marketing channels, electronic marketing channels, and different types of vertical marketing systems.15-*LO 15-4LEARNING OBJECTIVES (LO)AFTER READING CHAPTER 15, YOU SHOULD BE ABLE TO:LO 15-3Describe factors that marketing executives consider when selecting and managing a marketing channel.Explain what supply chain and logistics management are and how they relate to marketing strategy.15-*CALLAWAY GOLF: DESIGNING AND DELIVERING THE GOODS FOR GREAT GOLF15-*FIGURE 15-1 The variety of terms used for marketing intermediaries that vary in specificity and use in consumer and business markets15-*NATURE AND IMPORTANCE OFMARKETING CHANNELSTHE VALUE CREATED BY INTERMEDIARIESLO 15-1Marketing ChannelFunctions Intermediaries PerformTransactional FunctionLogistical FunctionFacilitating FunctionUtilities Consumers Receive15-*FIGURE 15-2 Marketing channel intermediaries perform three functions, each consisting of different activities15-*MARKETING CHANNEL STRUCTUREAND ORGANIZATIONMARKETING CHANNELS FOR CONSUMER OFFERINGSLO 15-2Direct ChannelIndirect ChannelRetailersWholesalersRetailersAgentsWholesalersRetailers15-*FIGURE 15-3 Common marketing channels for consumer products and services by the kind and number of intermediaries15-*MARKETING CHANNEL STRUCTUREAND ORGANIZATIONMARKETING CHANNELS FOR BUSINESS OFFERINGSLO 15-2Direct ChannelIndirect ChannelIndustrial DistributorAgentsAgentsIndustrial Distributors15-*FIGURE 15-4 Common marketing channels for business products and services by the kind and number of intermediaries15-*MARKETING CHANNEL STRUCTUREAND ORGANIZATIONLO 15-2Internet Marketing ChannelsDirect and Multichannel MarketingDirect MarketingMultichannel Marketing15-*FIGURE 15-5 Consumer electronic marketing channels are similar to those for consumer products and services15-*MARKETING CHANNEL STRUCTUREAND ORGANIZATIONLO 15-2Dual DistributionStrategic Channel Alliances15-*MARKETING MATTERSNestlé and General Mills— Cereal Partners WorldwideLO 15-215-*FIGURE 15-6 Three types of vertical marketing systems: corporate, contractual (most popular), and administered15-*MARKETING CHANNEL STRUCTUREAND ORGANIZATIONVERTICAL MARKETING SYSTEMSLO 15-2Vertical Marketing SystemsCorporate SystemsWholesaler-Sponsored Voluntary ChainsContractual SystemsRetailer-Sponsored CooperativesForward IntegrationBackward Integration15-*MARKETING CHANNEL STRUCTUREAND ORGANIZATIONVERTICAL MARKETING SYSTEMSLO 15-2Contractual SystemsAdministered SystemsFranchisingManufacturer-Sponsored Retail FranchisesManufacturer-Sponsored Wholesale FranchisesService-Sponsored Retail FranchisesService-Sponsored Franchises15-*MARKETING CHANNEL CHOICEAND MANAGEMENTCHANNEL CHOICE CONSIDERATIONSLO 15-3Target Market Coverage (Density)Intensive DistributionExclusive DistributionSelective DistributionSaks15-*MARKETING CHANNEL CHOICEAND MANAGEMENTCHANNEL CHOICE CONSIDERATIONSLO 15-3Buyer RequirementsInformationConvenienceVarietyPre- or Post-SaleServiceProfitability15-*MARKETING INSITEVisit an Apple Store toSee What All the Excitement is AboutLO 15-315-*Jiffy Lube and PetcoWhat buyer requirements have been satisfied?LO 15-315-*USING MARKETING DASHBOARDSChannel Sales and Profit at Charlesburg FurnitureLO 15-315-*MARKETING CHANNEL CHOICEAND MANAGEMENTMANAGING CHANNEL RELATIONSHIPSLO 15-3Sources of Channel ConflictVertical ConflictDisintermediationHorizontal Conflict15-*Channel CaptainChannel InfluenceEconomicExpertiseIdentificationLegitimate RightMARKETING CHANNEL CHOICEAND MANAGEMENTMANAGING CHANNEL RELATIONSHIPSLO 15-315-*Legal ConsiderationsDual DistributionVertical IntegrationExclusive DealingTying ArrangementsRefusal to DealResale RestrictionsFull-Line ForcingMARKETING CHANNEL CHOICEAND MANAGEMENTMANAGING CHANNEL RELATIONSHIPSLO 15-315-*FIGURE 15-7 The Clayton Act and Sherman Act restrict specific marketing channel strategies and practices15-*LOGISTICS ANDSUPPLY CHAIN MANAGEMENTKEY CONCEPTSLO 15-4LogisticsLogisticsManagementCustomerRequirementsCustomer Service Supply ChainSupply ChainManagementCost-Effective FlowThe AutomotiveSupply Chain15-*FIGURE 15-8 Relating logistics management and supply chain management to supplier networks and marketing channels15-*FIGURE 15-9 The automotive supply chain includes thousands of firms that provide the functional components, parts, etc. in a car15-*LOGISTICS ANDSUPPLY CHAIN MANAGEMENTSUPPLY CHAIN MGMT AND MKT STRATEGYLO 15-4Aligning a Supply Chain with Marketing StrategyUnderstand the CustomerUnderstand the Supply ChainHarmonize the Supply Chainwith the Marketing Strategy15-*MARKETING MATTERSIBM’s Integrated Supply Chain—A Total Solution for Its CustomersLO 15-415-*LOGISTICS ANDSUPPLY CHAIN MANAGEMENTSUPPLY CHAIN MGMT AND MKT STRATEGYLO 15-4Dell: A Responsive Supply ChainWal-Mart: An Efficient Supply ChainCross-docking15-*TWO CONCEPTS OF LOGISTICSMANAGEMENT IN A SUPPLY CHAINLO 15-4Total Logistics Cost ConceptCustomer Service Concept15-*FIGURE 15-10 Supply chain managers balance six total logistics cost factors against four customer service factors15-*LOGISTICS MANAGEMENTIN A SUPPLY CHAINCUSTOMER SERVICE FACTORSLO 15-4TimeOrder Cycle TimeQuick ResponseInventory Delivery SystemsReplenishment TimeEfficient Consumer Response15-*LOGISTICS MANAGEMENTIN A SUPPLY CHAINCUSTOMER SERVICE FACTORSLO 15-4DependabilityCommunicationConvenienceVendor-Managed Inventory (VMI)15-*LOGISTICS MANAGEMENTIN A SUPPLY CHAINTOTAL LOGISTICS COST FACTORSLO 15-4Third-Party Logistics ProvidersCostTransportation Mode Service CriteriaDependabilityAccessibilityTimeCapabilityFrequency15-*FIGURE 15-A Advantages and disadvantages of five transportation modes15-*LOGISTICS MANAGEMENTIN A SUPPLY CHAINTOTAL LOGISTICS COST FACTORS—TRANSPORTATIONLO 15-4RailroadsUnit TrainIntermodal TransportationPiggyback orTrailer on Flat CarContainers15-*TWO CONCEPTS OF LOGISTICSMANAGEMENT IN A SUPPLY CHAINTOTAL LOGISTICS COST FACTORS—TRANSPORTATIONLO 15-4Motor Carriers(Trucks)Air Carriers and Express Companies Freight Forwarders15-*TWO CONCEPTS OF LOGISTICSMANAGEMENT IN A SUPPLY CHAINTOTAL LOGISTICS COST FACTORS—TRANSPORTATIONLO 15-4PipelinesWater Carriers15-*TWO CONCEPTS OF LOGISTICSMANAGEMENT IN A SUPPLY CHAINTOTAL LOGISTICS COST FACTORS—WAREHOUSING AND MATERIALS HANDLINGLO 15-4Storage WarehousesDistribution CentersMaterials Handling15-*TWO CONCEPTS OF LOGISTICSMANAGEMENT IN A SUPPLY CHAINTOTAL LOGISTICS COST FACTORS—ORDER PROCESSINGLO 15-4Stages of Order ProcessingElectronic Data Interchanges (EDI)Extranet15-*TWO CONCEPTS OF LOGISTICSMANAGEMENT IN A SUPPLY CHAINTOTAL LOGISTICS COST FACTORS—INVENTORY MGMTLO 15-4Reasons for InventoryCapital CostsInventoryService CostsInventory CostsStorage CostsRisk CostsSupply Chain Inventory StrategiesJust-in-Time (JIT) Concept15-*CLOSING THE LOOP:REVERSE LOGISTICSLO 15-4Reverse LogisticsUPS Video15-*MAKING RESPONSIBLE DECISIONSReverse Logistics and Green MarketingGo Together at HP: Recycling E-WasteLO 15-415-*AMAZON: DELIVERING THE GOODSMILLIONS OF TIMES A DAY!VIDEO CASE 1515-*