Week 9-Place

• Supply chain


  All activities associated with the flow and transformation of a product

  
• Marketing channel

  Part of the supply chain downstream, all organisations that direct the flow of products from producer to consumer
• Upstream activities

  • Done before the product is made, e.g. manufacturing, servicing
• Downstream activities

  • Done after the product is made, e.g. how will we get it to consumers
• Marketing intermediaries

  Everyone/everything that acts in the distribution channel between producer and consumer
• Affected by global crisis

  Shortages of supply or Covid-19, did the product come damaged
• Marketing channels issues

  • Advantages
  • Cooperation
• Time utility

  • Making products available when consumers want it
• Place utility

  • Products available where consumers can access them
• Possession utility

  • Easier to obtain
• Form utility

  • Customising products to the customer's specific needs
• Indirect Distribution

  Intermediaries, advantages: manufacturers lack resources to distribute products so use retailers, involving intermediaries makes distribution more efficient, less stress, good time management
• Disadvantages of indirect distribution

  Could influence the brand image, lack of control around how a company's product is advertised, how consumers view

  
• Channel management

  Managerial activities used to distribute products in the right place at the right time
• Marketing channel functions

  • Information gathering and distribution (e.g. market research)
  • Promotion development and persuasive communication
  • Facilitating exchange (contact, matching, customising the offer to buyer's needs, negotiation)
  • Physical Distribution (transport goods and services)
  • Financing (using funds to cover costs) and Risk taking
• Two critical roles for intermediaries

  • Sales specialist for suppliers (experience in promotion, financing, risk, storing products)
  • Purchasing agents for customers (Anticipate wants, subdivide, transport locally, guarantee product)
• Channel strategy 3 key decisions

  • Select most effective distribution channel
  • Most appropriate level of distribution intensity
  • Degree of channel integration
• Channel level

  The layer of intermediaries who perform some work into bringing the product to the final buyer
• Direct Marketing Channel: No intermediary level
• Indirect Marketing Channel: Contains one or more intermediary levels
• Number of Market Intermediaries, each level:

  • Exclusive: Selling through one intermediary
• Number of Market Intermediaries, each level:

  • Selective: Selling through only those who will give the product special attention
• Number of Market Intermediaries, each level:

  • Intensive: Selling through all suitable wholesalers
• Channel Integration-Vertical:

  • combining two or more levels of marketing channel under one management (Two or more areas of supply chain)
• Channel Integration-Horizontal:

  • Two or more companies at the same level agree to work together
• Channel Integration-Conventional:

  • Channel members working independently
• Benefits of Channel cooperation:

  1. Improves customer service
  2. Cuts costs of transporting
  3. Leads to greater trust
• Disadvantages of Channel Cooperation:

  1. Self interest creates misleading of role expectations
  2. Frustration for whole company from this
• Retailing Definition: All activities involved in selling goods and services to final consumer
• Retailers Definition: Businesses who's sales come primarily from retailing and can vary.
• Retail Strategies:

  1. Segmentation and Targeting
  2. Store differentiation
• Challenges in Retailing: Consumers want more individualised experiences so there is a need to integrate technology.