16-1 CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 1 6 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
16-1 CHAPTER SUPPLY CHAIN AND CHANNEL MANAGEMENT 16 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without.
Jan 16, 2016
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16-1
CHAPTER
SUPPLY CHAIN AND CHANNEL MANAGEMENT
16
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
16-2
L E A R N I N G O B J E C T I V E S
Understand the importance of marketing channels and supply chain management.
Understand the difference between direct and indirect marketing channels.
Describe how marketing channels are managed.
Describe the flow of information and merchandise in the marketing channel.
Supply Chain and Channel Management
LO1
LO2
LO3
LO4
16-3
Supply Chain Management
16-4
Marketing Channels Add Value
Reduce number of transactions
Increase value for consumers
More efficient and effective
http://www.youtube.com/watch?v=NeK5ZjtpO-M
16-5
Marketing Channel Management Affects Other Aspects of Marketing
Fulfilling delivery promises
Meeting customer expectations
Reliant on an efficient supply chain
Courtesy Zara International, Inc. Courtesy Zara International, Inc.
16-6
Designing Marketing Channels
Manufacturer
Customer
Direct Channel
Manufacturer
Customer
Retailer
Direct ChannelOne Intermediary
Manufacturer
Customer
Retailer
Wholesaler
Direct ChannelTwo Intermediaries
16-7
Types of Vertical Marketing Systems
Administered vertical
marketing system
Corporate vertical
marketing system
Contractual vertical
marketing system
16-8
Power
Power
Reward Coercive Referent Expertise Information Legitimate
16-9
Managing Marketing Channels and Supply Chains Through Strategic Relationships
Strategic Relationships
Mutual Trust
Open Communications
Common GoalsInterdependence
Credible Commitments
16-10
CHECK YOURSELF
1. What is the difference between an indirect and a direct marketing channel?
2. What are the differences among the three types of vertical marketing systems?
3. How do firms develop strong strategic partnerships with their marketing channel partners?
16-11
Making Information Flowthrough Marketing Channels
16-12
Data WarehouseElectronic Data Interchange
Cycle time
Quality of communicat
ions
Easily analyzed and used
Pho
to b
y C
ab
ela
’s
16-13
Vendor-Managed Inventory
DH Kong/Plush Studios/Getty Images
16-14
CHECK YOURSELF
1. What are the marketing channel links associated with each information flow?
2. How do marketing channel members use data warehouses to make decisions?
3. What is EDI and how is it used?
4. Why do some marketing channels use VMI, while others do not?
16-15
Making Merchandise Flow Through Marketing Channels
16-16
The Distribution Center
ABC News Segment on a Walgreens Warehouse
16-17
Inventory Management Through Just-In-Time Systems
Just-in-time (JIT) Quick response (QR)
Zappos
Cou
rte
sy T
ub
ula
r S
tee
l, In
c.
16-18
CHECK YOURSELF
1. How does merchandise flow through a typical marketing channel?
2. Why have just-in-time supply chain systems become so popular?
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