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1、Marketing Channels and Supply Chain ManagementChapter 130ObjectivesKnow why companies use distribution channels and understand the functions that these channels perform.Learn how channel members interact and how they organize to perform the work of the channel.Know the major channel alternatives tha

2、t are open to a company.1ObjectivesComprehend how companies select, motivate, and evaluate channel members.Understand the nature and importance of marketing logistics and integrated supply chain management.2Dominates worlds markets for heavy construction and mining equipment.Independent dealers are

3、key to success Dealer network is linked via computersCaterpillar stresses dealer profitability, extraordinary dealer support, personal relationships, dealer performance and full, honest, and frequent communications CaterpillarCase Study3DefinitionValue Delivery NetworkThe network made up of the comp

4、any, suppliers, distributors, and ultimately customers who “partner” with each other to improve the performance of the entire system.4Channel choices affect other decisions in the marketing mixPricing, Marketing communicationsA strong distribution system can be a competitive advantageChannel decisio

5、ns involve long-term commitments to other firmsNature & Importance of Marketing Channels5How Channel Members Add ValueIntermediaries require fewer contacts to move the product to the final purchaser.Intermediaries help match product assortment demand with supply. Intermediaries help bridge major tim

6、e, place, and possession gaps that separate products from those who would use them.Nature & Importance of Marketing Channels6Key Functions Performed by Channel MembersNature & Importance of Marketing ChannelsInformationPromotionContactMatchingNegotiationPhysical DistributionFinancingRisk taking7Numb

7、er of Channel LevelsThe number of intermediary levels indicates the length of a marketing channel. Direct Channels Indirect ChannelsProducers lose more control and face greater channel complexity as additional channel levels are added.Nature & Importance of Marketing Channels8Channel Members Are Con

8、nected Via A Variety of FlowsNature & Importance of Marketing ChannelsPhysical FlowPayment FlowInformation FlowPromotion Flow Flow of Ownership9Channel ConflictOccurs when channel members disagree on roles, activities, or rewards.Types of Conflict: Horizontal conflict: occurs among firms at the same

9、 channel level Vertical conflict: occurs among firms at different channel levelsChannel Behavior and Organization10Vertical Marketing SystemsCorporate VMSContractual VMS Manufacturer-sponsored retailer franchise system Manufacturer-sponsored wholesaler franchise systemService-firm-sponsored retailer

10、 franchise systemAdministered VMSChannel Behavior and Organization11Multichannel Distribution SystemsAlso called hybrid marketing channelsOccurs when a firm uses two or more marketing channels Hybrid marketing has many advantagesChanging Channel OrganizationDisintermediationChannel Behavior and Orga

11、nization12Step 1: Analyzing Consumer NeedsCost and feasibility of meeting needs must be considered Step 2: Setting Channel ObjectivesSet channel objectives in terms of targeted level of customer serviceMany factors influence channel objectivesChannel Design Decisions13Step 3: Identifying Major Alter

12、nativesTypes of intermediaries Company sales force, manufacturers agency, industrial distributorsNumber of marketing intermediaries Intensive, selective, and exclusive distributionResponsibilities of channel membersChannel Design Decisions14Step 4: Evaluating Major AlternativesEconomic criteriaContr

13、ol issuesAdaptive criteriaChannel Design Decisions15Designing International Distribution ChannelsGlobal marketers usually adapt their channel strategies to structures that exist within foreign countriesKey challenges: May be complex or hard to penetrate May be scattered, inefficient, or totally lack

14、ingChannel Design Decisions16Selecting Channel MembersIdentify characteristics that distinguish the best channel membersManaging and Motivating Channel MembersPartner relationship management (PRM) is keyEvaluating Channel MembersPerformance should be checked against standardsChannel members should b

15、e rewarded or replaced as dictated by performance Channel Management Decisions17Exclusive distributionOnly certain outlets are allowed to carry a firms productsExclusive dealingExclusive territorial agreementsTying agreementsPublic Policy and Distribution Decisions18Marketing Logistics Outbound dist

16、ributionInbound distributionReverse distributionInvolves the entire supply chain management systemMarketing Logistics and Supply Chain Management19Why Greater Emphasis is Being Placed on Logistics:Offers firms a competitive advantageCan yield cost savingsGreater product variety requires improved log

17、isticsImprovements in distribution efficiency are possible due to information technologyMarketing Logistics and Supply Chain Management20Goals of the Logistics SystemNo system can both maximize customer service and minimize costs.Firms must first weigh the benefits of higher service against the cost

18、s.State goals in terms of a targeted level of customer service at the least cost.Marketing Logistics and Supply Chain Management21Major Logistics FunctionsWarehousingInventory ManagementTransportationLogistics Information ManagementMarketing Logistics and Supply Chain Management22Transportation Carrier OptionsMarketing Logistics and Supply Chain ManagementTruckRailWaterPipelineAirInternet Intermodal transportation is beco

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