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C 10: DISTRIBUTION CHANNELS DELIVERING CUST VALUE, Channel Managmnt…
C 10: DISTRIBUTION CHANNELS DELIVERING CUST VALUE
1 Supply chain & Value Delivery Network(VDN)
upstream partner
demand partner
VDN
downstream partner
why company use marketing channels
supply chain
Design effectiveness markting channels
Identifying major channel alternatives
type of intermediaries
direct & indirect
num o marketing intermediaries
exclusive dist
intensive dist
selective dist
responsibilities of channel mmbers
price policies
conditions of sale
territory rights
specific services
Evaluating those alternative
using economic criteria
sales, cost & profitability
control issues
adaptability criteria
setting channel objctive
in terms of targeted lvl o cust service
influenced by
the nature of compny, environmnt..
product, marketing intermediaries, competitors
Design International Dist Channel
analyzing cust needs
1.2 The Nature & Importnt o Marketing Channels
Num Of Channel Level
indirect
direct marketing channel
Channels Members Are Connected By Several Types of Flows
physical flow o product
flow o ownership
payment flow
information flow
Promotion flow
Marketing Channels(Distribution Channel)
How channel mmber add-value
matching
negitiation
contacts
physical distribution
promtion
financing
information
risk taking
2 Channel Behavior & Organization
A Conventional Dist Channel
Consist of 1/> indepndnt produces, wholeseller n retailers
Lacked such leadershp,& power- results in damage conflict & poor performmce
3 Type of Marketing Chnnl Systm
vertical marketing (VMS)
corporate VMS
contractual VMS
administered VMS
horizontal
multichannel
Channel Conflict
Horizontal C-among firms at same lvl of chnnel
Vertical C-btween diff level of same channel
Managing & Motivating CM
Partner Rship Mngmnt (PRM)
Supply Chain Mngmnt (SCM)
Selecting Channel Mmbers (CM)
Evaluating CM
Public Policy & Dist Decision
exclusive dist
exclusive dealing
exclusive arrangemnt
e. territorial agreemnt
full-line forcing
integrated logistic mngmnt
building logistic partnershp
third-party logistic
cross-fuctional teamwork inside the company
ML
SCM (pic)
Goal of ML
research the important o various dist service
weight the benefit against the cost
provide a trgeted lvl o cust service at least cost
Nature & Important o ML
Major Logistic Func
Werehousing
Storage werehouse
Dist center
Inventory Mngmnt
just-in-time
RFID
Smart Tag
Transportation
7 Type transportation
Logistic in4mation mngmnt
EDI
VMI
Channel Managmnt Decision
Marketing Logistics(ML) & Supply Chain Mangmnt(SCM)
Channel Design Decision