kotler pom13e instructor 12 - ge
TRANSCRIPT
-
7/31/2019 Kotler POM13e Instructor 12 - GE
1/41
Chapter 12 - slide 1Copyright 2009 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter Twelve
Marketing Channels:Delivering Customer Value
-
7/31/2019 Kotler POM13e Instructor 12 - GE
2/41
-
7/31/2019 Kotler POM13e Instructor 12 - GE
3/41
Chapter 12 - slide 3Copyright 2010 Pearson Education, Inc.
Supply Chains and the
Value Delivery Network
Upstream partners include raw
material suppliers, components,parts, information, finances, andexpertise to create a product orservice
Downstream partners include themarketing channels or distributionchannels that look toward the
customer
Supply Chain Partners
-
7/31/2019 Kotler POM13e Instructor 12 - GE
4/41
Chapter 12 - slide 4Copyright 2010 Pearson Education, Inc.
Supply Chains and the
Value Delivery Network
Supply chain make and sell viewincludes the firms raw materials,productive inputs, and factory capacity
Demand chain sense and respondview suggests that planning starts with
the needs of the target customer, andthe firm responds to these needs byorganizing a chain of resources andactivities with the goal of creating
customer value
Supply Chain Views
-
7/31/2019 Kotler POM13e Instructor 12 - GE
5/41
Chapter 12 - slide 5Copyright 2010 Pearson Education, Inc.
Supply Chains and the
Value Delivery Network
Value deliverynetworkis the
firms suppliers,distributors, andultimatelycustomers whopartner with eachother to improvethe performance of
the entire system
Value Delivery Network
-
7/31/2019 Kotler POM13e Instructor 12 - GE
6/41
Chapter 12 - slide 6Copyright 2010 Pearson Education, Inc.
The Nature and Importance of
Marketing Channels
Intermediaries offer producers
greater efficiency in makinggoods available to target markets.
Through their contacts,
experience, specialization, andscale of operations,intermediaries usually offer the
firm more than it can achieve onits own.
How Channel Members Add Value
-
7/31/2019 Kotler POM13e Instructor 12 - GE
7/41Chapter 12 - slide 7
Copyright 2010 Pearson Education, Inc.
The Nature and Importance of
Marketing Channels From an economic view,
intermediaries transform the
assortment of products intoassortments wanted by consumers
Channel members add value by
bridging the major time, place, andpossession gaps that separategoods and services from those who
would use them
How Channel Members Add Value
-
7/31/2019 Kotler POM13e Instructor 12 - GE
8/41Chapter 12 - slide 8
Copyright 2010 Pearson Education, Inc.
The Nature and Importance of
Marketing ChannelsHow Channel Members Add Value
-
7/31/2019 Kotler POM13e Instructor 12 - GE
9/41Chapter 12 - slide 9
Copyright 2010 Pearson Education, Inc.
The Nature and Importance of
Marketing ChannelsHow Channel Members Add Value
-
7/31/2019 Kotler POM13e Instructor 12 - GE
10/41Chapter 12 - slide 10
Copyright 2010 Pearson Education, Inc.
The Nature and Importance of
Marketing ChannelsNumber of Channel Levels
-
7/31/2019 Kotler POM13e Instructor 12 - GE
11/41Chapter 12 - slide 11
Copyright 2010 Pearson Education, Inc.
The Nature and Importance of
Marketing Channels
Connected by types of flows:
Physical flow of products
Flow of ownership
Payment flow
Information flow Promotion flow
Number of Channel Levels
-
7/31/2019 Kotler POM13e Instructor 12 - GE
12/41
Chapter 12 - slide 12Copyright 2010 Pearson Education, Inc.
Channel Behavior and Organization
Marketing channel consists offirms that have partnered for their
common good with each memberplaying a specialized roleChannel conflict refers to
disagreement over goals, roles,
and rewards by channel members Horizontal conflict Vertical conflict
Channel Behavior
-
7/31/2019 Kotler POM13e Instructor 12 - GE
13/41
Chapter 12 - slide 13Copyright 2010 Pearson Education, Inc.
Channel Behavior and Organization
Conventional distributionsystems consist of one or moreindependent producers,wholesalers, and retailers. Eachseeks to maximize its own profits,
and there is little control over theother members and no formalmeans for assigning roles and
resolving conflict.
Conventional Distributions Systems
-
7/31/2019 Kotler POM13e Instructor 12 - GE
14/41
Chapter 12 - slide 14Copyright 2010 Pearson Education, Inc.
Channel Behavior and Organization
Vertical marketing systems (VMSs)
provide channel leadership and consistof producers, wholesalers, and retailersacting as a unified system and consistof:
Corporate marketing systems Contractual marketing systems
Administered marketing systems
Vertical Marketing Systems
-
7/31/2019 Kotler POM13e Instructor 12 - GE
15/41
Chapter 12 - slide 15Copyright 2010 Pearson Education, Inc.
Channel Behavior and
OrganizationCorporate
vertical
marketingsystemintegratessuccessive
stages ofproduction anddistributionunder singleownershi
Vertical Marketing Systems
-
7/31/2019 Kotler POM13e Instructor 12 - GE
16/41
Chapter 12 - slide 16Copyright 2010 Pearson Education, Inc.
Channel Behavior and Organization
Contractual vertical marketing
system consists of independent firmsat different levels of production anddistribution who join together throughcontracts to obtain more economies or
sales impact than each could achievealone. The most common form is thefranchise organization.
Vertical Marketing Systems
-
7/31/2019 Kotler POM13e Instructor 12 - GE
17/41
Chapter 12 - slide 17Copyright 2010 Pearson Education, Inc.
Channel Behavior and Organization
Franchise organization links several
stages in the production distributionprocess
Manufacturer-sponsored retailer franchisesystem
Manufacturer-sponsored wholesalerfranchise system
Service firm-sponsored retailer franchisesystem
Vertical Marketing Systems
http://www.franchiseeurope.com/ -
7/31/2019 Kotler POM13e Instructor 12 - GE
18/41
Chapter 12 - slide 18Copyright 2010 Pearson Education, Inc.
Channel Behavior and Organization
Administered vertical
marketingsystem has a fewdominant channel memberswithout common ownership.
Leadership comes from size andpower.
Vertical Marketing Systems
-
7/31/2019 Kotler POM13e Instructor 12 - GE
19/41
Chapter 12 - slide 19Copyright 2010 Pearson Education, Inc.
Channel Behavior and Organization
Horizontalmarketing systemsare when two or more
companies at onelevel join together tofollow a newmarketingopportunity.
Companies combinefinancial, production,or marketingresources toaccomplish morethan any one
company could alone.
Horizontal Marketing System
-
7/31/2019 Kotler POM13e Instructor 12 - GE
20/41
Chapter 12 - slide 20Copyright 2010 Pearson Education, Inc.
Channel Behavior and Organization
Multichannel Distributionsystems (Hybrid marketingchannels) are when a singlefirm sets up two or more
marketing channels to reachone or more customer segments
Multichannel Distribution SystemsHybrid Marketing Channels
http://www.peapod.com/ -
7/31/2019 Kotler POM13e Instructor 12 - GE
21/41
Chapter 12 - slide 21Copyright 2010 Pearson Education, Inc.
Channel Behavior and
OrganizationMultichannel Distribution System
-
7/31/2019 Kotler POM13e Instructor 12 - GE
22/41
Chapter 12 - slide 22Copyright 2010 Pearson Education, Inc.
Channel Behavior and Organization
Disintermediation
occurs when productor service producerscut out intermediariesand go directly to
final buyers, or whenradically new types ofchannelintermediaries
displace traditional
Changing Channel Organization
http://www.pg.com/en_US/products/all_products/index.shtml -
7/31/2019 Kotler POM13e Instructor 12 - GE
23/41
Chapter 12 - slide 23Copyright 2010 Pearson Education, Inc.
Channel Design Decisions
-
7/31/2019 Kotler POM13e Instructor 12 - GE
24/41
Chapter 12 - slide 24Copyright 2010 Pearson Education, Inc.
Channel Design Decisions
Targeted levels of customer service
What segments to serve Best channels to use
Minimizing the cost of meeting
customer service requirements
Setting Channel Objectives
-
7/31/2019 Kotler POM13e Instructor 12 - GE
25/41
Chapter 12 - slide 25Copyright 2010 Pearson Education, Inc.
Channel Design Decisions
Types of intermediaries
Number of marketingintermediaries
Responsibilities of channelmembers
Identifying Major Alternatives
-
7/31/2019 Kotler POM13e Instructor 12 - GE
26/41
Chapter 12 - slide 26Copyright 2010 Pearson Education, Inc.
Channel Design Decisions
Identifying Major Alternatives
-
7/31/2019 Kotler POM13e Instructor 12 - GE
27/41
Chapter 12 - slide 27Copyright 2010 Pearson Education, Inc.
Channel Design Decisions
Each alternative
should beevaluatedagainst:
Economic criteria Control
Adaptive criteria
Evaluating the Major Alternatives
-
7/31/2019 Kotler POM13e Instructor 12 - GE
28/41
Chapter 12 - slide 28Copyright 2010 Pearson Education, Inc.
Channel Design Decisions
Channel systemscan vary from
country tocountry
Must be able to
adapt channelstrategies to theexistingstructures within
each country
Designing International Distribution Channels
-
7/31/2019 Kotler POM13e Instructor 12 - GE
29/41
Chapter 12 - slide 29Copyright 2010 Pearson Education, Inc.
Channel Management Decisions
-
7/31/2019 Kotler POM13e Instructor 12 - GE
30/41
Chapter 12 - slide 30Copyright 2010 Pearson Education, Inc.
Public Policy and Distribution
DecisionsExclusive distribution is when the
seller allows only certain outlets to
carry its productsExclusive dealing is when the seller
requires that the sellers not handlecompetitors products
Exclusive territorial agreements arewhere producer or seller limit territory
Tying agreements are agreementswhere the dealer must take most or all
of the line
-
7/31/2019 Kotler POM13e Instructor 12 - GE
31/41
Chapter 12 - slide 31Copyright 2010 Pearson Education, Inc.
Marketing Logistics and
Supply Chain Management
Marketing logistics(physical distribution)
involves planning,implementing, andcontrolling the physicalflow of goods, services,
and related informationfrom points of origin topoints of consumption tomeet consumer
requirements at a profit
Nature and Importance of MarketingLogistics
-
7/31/2019 Kotler POM13e Instructor 12 - GE
32/41
Chapter 12 - slide 32Copyright 2010 Pearson Education, Inc.
Marketing Logistics and
Supply Chain ManagementNature and Importance of
Marketing Logistics
-
7/31/2019 Kotler POM13e Instructor 12 - GE
33/41
Chapter 12 - slide 33Copyright 2010 Pearson Education, Inc.
Marketing Logistics and
Supply Chain Management
Supply chain management is the
process of managing upstream anddownstream value-added flows ofmaterials, final goods, and relatedinformation among suppliers, thecompany, resellers, and finalconsumers
Nature and Importance ofMarketing Logistics
-
7/31/2019 Kotler POM13e Instructor 12 - GE
34/41
Chapter 12 - slide 34Copyright 2010 Pearson Education, Inc.
Marketing Logistics and
Supply Chain ManagementMajor Logistics Functions
-
7/31/2019 Kotler POM13e Instructor 12 - GE
35/41
Chapter 12 - slide 35Copyright 2010 Pearson Education, Inc.
Marketing Logistics and
Supply Chain Management
How many
What types
Location
Distribution centers
Warehousing Decisions
-
7/31/2019 Kotler POM13e Instructor 12 - GE
36/41
Chapter 12 - slide 36Copyright 2010 Pearson Education, Inc.
Marketing Logistics and
Supply Chain Management
Just-in-time systems
RFID
Knowing exact product location
Smart shelves
Placing orders automatically
Inventory Management
-
7/31/2019 Kotler POM13e Instructor 12 - GE
37/41
Chapter 12 - slide 37Copyright 2010 Pearson Education, Inc.
Marketing Logistics and
Supply Chain Management
Major Logistics Functions
Transportation affects thepricing of products,
delivery performance,and condition of thegoods when they arrive
-
7/31/2019 Kotler POM13e Instructor 12 - GE
38/41
Chapter 12 - slide 38Copyright 2010 Pearson Education, Inc.
Marketing Logistics and
Supply Chain Management
Logistics information management is
the management of the flow ofinformation, including customerorders, billing, inventory levels, andcustomer data
EDI (electronic data interchange)
VMI (vendor-managed inventory)
Logistics InformationManagement
-
7/31/2019 Kotler POM13e Instructor 12 - GE
39/41
Chapter 12 - slide 39Copyright 2010 Pearson Education, Inc.
Marketing Logistics and
Supply Chain Management
Integrated logistics
management is therecognition that providingcustomer service andtrimming distribution
costs requires teamworkinternally and externally
Integrated Logistics Management
-
7/31/2019 Kotler POM13e Instructor 12 - GE
40/41
Chapter 12 - slide 40Copyright 2010 Pearson Education, Inc.
Marketing Logistics and
Supply Chain Management
Third-partylogistics is the
outsourcing oflogistics functionsto third-partylogistics providers
(3PLs)
Integrated Logistics Management
-
7/31/2019 Kotler POM13e Instructor 12 - GE
41/41
C i ht 2010 P Ed ti I
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright 2010 Pearson Education, Inc.Copyright 2010 Pearson Education, Inc.
Publishing as Prentice HallPublishing as Prentice Hall