Marketing Management 2nd Edition

1
Marketing Management2nd Edition
Michael R. Czinkota and Masaaki Kotabe

• Chapter 11
• Distribution and Supply Chain Management

2
Chapter Outline

• Distribution channel
• Channel compensation
• Channel membership
• Channel integration
• Retailing
• Wholesaling
• Purchasing
• The supply chain
• Supply chain management
• Customer service

3
Distribution Channel

• Member organizations through which a product
  passes to reach the end user.

Intermediaries
Zero-level
Manufacturer
Manufacturer
Wholesaler
Intermediaries
Retailer
Consumer
Consumer
4
Channel Compensation

• Trade discounts
• Quantity discounts
• Promotional discounts
• Cash discounts

5
Channel Membership
Intensive distribution
Selective distribution
Exclusive distribution
6
Channel Integration
Manufacturer
Forward integration member acquires
a downstream member
Backward integration member acquires
an upstream member
Wholesaler
Retailer
Franchise member licenses property
to independent business
Consumer
7
Retailing Type of Product

• Supermarkets
• Dept. stores
• Discount outlets

8
Retailing Type of Service

• Self-service
• Self-selection
• Personal service

9
Retailing Location

• Central shopping area
• Sites outside cities
• Catalogs

Three most important words in retailing Location
location location!
10
Wholesaling

• Different types of wholesalers
• Cash-and-carry wholesalers
• Full service wholesalers
• Service merchandisers, or rack jobbers

11
Purchasing
Buy from Single supplier
Buy from Multiple suppliers
Supplier
Supplier
Supplier
Supplier
12
The Supply Chain
Suppliers
Corporation
Customers
Domestic/ import sourcing
Throughflow
Domestic/ export distribution
13
Supply Chain Management

• Five key decisions
• Production
• Transport
• Facility
• Inventory
• Communications

14
Customer Service

• Service levels
• Customers complaints
• Customer satisfaction
• Organizing for customer service