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1、Marketing Channels:Delivering Customer ValueChapter 101.Explain why companies use marketing channels and discuss the functions these channels perform.2.Discuss how channel members interact and how they organize to perform the work of the channel.3.Identify the major channel alternatives open to a co
2、mpany.4.Explain how companies select,motivate,and evaluate channel members.5.Discuss the nature and importance of marketing logistics and integrated supply chain management.Rest Stop:Previewing the ConceptsEnterprise Leaves Competitors in the Dust!First StopCompetitive MarketBackground:Hertz and Avi
3、s were historically#1 and#2 in car rental market.In the late 1990s Enterprise became#1 in revenues,profits,locations and cars,and is currently 50%larger than Hertz.How Did They Do It?Enterprise catered to the“home-city”market via rental sites in neighborhood areas.Enterprises offer to pick customers
4、 up at repair shops,accident sites,etc.,became the theme of its value proposition.Growth at EnterpriseTapping New Markets:Enterprise expanded distribution to the airport market,and acquired Vanguard Car Rental group in 2007.More recently,Enterprise has ventured into the“car-sharing”and hourly rental
5、 market,called“WeCar”,in densely populated areas where many dont own vehicles.Customer Satisfaction is Key:Enterprise uses the ESQi(Enterprise Service Quality index)to measure satisfaction;managers arent promoted unless customers are satisfied.Supply Chains and the Value Delivery NetworkProducing an
6、d making products available to buyers requires building relationships with“upstream”and“downstream”supply chain partners.Upstream:Firms that supply the raw materials,components,parts,and other elements necessary to create a good.Downstream:Marketing channel partners that link the firm to the custome
7、r.Value Delivery Network The network made up of the company,suppliers,distributors,and ultimately customers who“partner”with each other to improve the performance of the entire system in delivering customer value.Supply Chains and the Value Delivery NetworkMarketing channels,such as retailers,repres
8、ent the“downstream”side of the value delivery network.Marketing Channels A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business users.Nature and Importance of Marketing ChannelsMarketing channel decisions:Affect other ma
9、rketing decisions,such as pricing or product design.Can lead to competitive advantage.Watch this video to see how Progressives channel decisions led to competitive advantage.Click on flimstrip icon at left to play videoFigure 10.1:How Adding A Distributor Reduces the Number of Channel TransactionsNa
10、ture and Importance of Marketing ChannelsHow channel members add value:The use of intermediaries results from their greater efficiency in making goods available to target markets.Nature and Importance of Marketing ChannelsHow channel members add value:Channel members can offer more:Contacts.Experien
11、ce.Specialization.Scale of operation.Channel members may perform many functions.Nature and Importance of Marketing ChannelsTransaction fulfillment:Physical distributionFinancingRisk takingTransaction completion:InformationPromotionContactMatchingNegotiationKey functions performed by channel members:
12、Figure 10.2:Customer and Business Marketing ChannelsNature and Importance of Marketing ChannelsNumber of channel levels:The number of intermediary levels indicates the length of a channel.Direct marketing channelsHave no intermediary levels between the manufacturer and the customer.Indirect marketin
13、g channelsContains one or more intermediaries.All channel institutions are connected by several types of flows.Channel Behavior and OrganizationThe channel will be most effective when:Each member is assigned tasks it can do best.All members cooperate to attain overall channel goals.Otherwise,channel
14、 conflict can occur:Horizontal conflict occurs among firms at the same level of the channel(e.g.,retailer to retailer).Vertical conflict occurs between different levels of the same channel(e.g.,wholesaler to retailer).Some conflict can be healthy competition.Marketing in Action Goodyears 1992 decisi
15、on to sell tires via Sams,Wal-Mart,and Sears created conflict with its prized network of independent dealers.Figure 10.3:Comparison of Conventional Distribution Channel with Vertical Marketing SystemChannel Behavior and OrganizationConventional distribution channel:Consists of one or more independen
16、t producers,wholesalers,and retailers,each a separate business seeking to maximize its own profits even at the expense of profits for the system as a whole.Vertical marketing system(VMS):A distribution channel structure in which producers,wholesalers,and retailers act as a unified system.One channel
17、 member owns the other,has contracts with them,or has so much power that they all cooperate.Types of vertical marketing systems:Corporate VMS.Single ownership.Contractual VMS.Franchise organization.Administered VMS.Channel Behavior and OrganizationMany restaurant chains franchise to expand distribut
18、ion.Marketing in Action Effective vertical integration makes Zara more flexible,and more efficient a virtual blur compared to competitors.It can take a new line from design to production to worldwide distribution in its own stores in less than one month.Franchise organizations are a common form of c
19、ontractual vertical marketing system in which a franchisor links several stages in the product-distribution process.Types of franchise organizations:Manufacturer-sponsored retailer franchise.Manufacturer-sponsored wholesaler franchise.Service-firm sponsored retailer franchise.Channel Behavior and Or
20、ganizationMarketing in ActionFuel for Thought You may be surprised to learn that Starbucks does not franchise its business,and that they have“no plans to franchise in the foreseeable future.”However,Starbucks may enter into licensing arrangements with firms who provide access to select locations suc
21、h as airports,national grocery chains,etc.Why do you think that Starbucks has chosen to forgo franchising?Horizontal marketing systems:Two or more companies at one level join together to follow a new marketing opportunity.Channel Behavior and OrganizationMcDonalds now places“express”versions of thei
22、r stores in many Wal-Marts.Figure 10.4:Multichannel Distribution SystemMultichannel distribution system:Occurs when a single firm sets up two or more marketing channels to reach one or more customer segments.Also called hybrid marketing channel system.Offers many advantages.Channel Behavior and Orga
23、nizationMarketing in Action Multichannel distribution systems allow firms to expand sales and market coverage while tailoring products to diverse needs of market segments.However,the decision to go multichannel often creates conflict.John Deere dealers complained loudly when Lowes began selling sele
24、ct products.Changing channel organization:Disintermediation occurs when product and service producers cut out traditional intermediaries or displace resellers with radical new types of intermediaries.Youtube video Futurist David Houle on disintermediation.Channel Behavior and OrganizationChanging ch
25、annel organization:Disintermediation presents both problems and opportunities for both producers and resellers.Resellers and intermediaries must innovate to survive.Producers must seek additional direct channels to remain competitive,though channel conflict often results.Channel Behavior and Organiz
26、ationMarketing in Action Netflix is leading the industry in how movies and entertainment content will be distributed.Users can now stream video over the internet.Channel Design Decisions Designing effective marketing channels by analyzing consumer needs,setting channel objectives,identifying major a
27、lternatives,and evaluating them.Firms often struggle between what is ideal and what is practical.Channel Design DecisionsAnalyzing consumer needs:Do consumers want to buy from nearby locations or are they willing to travel?Do they want to buy-in person,by phone,or online?Do they value breadth of ass
28、ortment or do they prefer specialization?Do consumers want many add-on services?Firm must balance needs against costs and consumer price preferences.Channel Design DecisionsSetting channel objectives:Objectives are stated in terms of targeted levels of customer service.Channel objectives are influen
29、ced by:Cost of customer-service requirements.Nature of the company.The firms products.Marketing intermediaries.Competitors.Environment.Channel Design DecisionsIdentifying major alternatives:Types of intermediaries:Retailers,“value-added”retailers,independent distributors,dealers,etc.Number of market
30、ing intermediaries:Intensive,selective,or exclusive distribution.Responsibilities of channel members.Price policies,conditions of sale,territories and services to be performed.Marketing in Action Rolex sells its watches exclusively through only a handful of authorized dealers in any given market.Suc
31、h limited distribution enhances the brands image and generates stronger retailer support.Evaluating the major alternatives involves comparing each alternative to:Economic criteria:A company compares the likely sales,costs,and profitability of different channel alternatives.Control issues:How and to
32、whom should control be given?Adaptive criteria:Consideration of long-term channel commitment vs.channel flexibility.Channel Design DecisionsDesigning International ChannelsChannel design decisions can be very challenging:Each country has its own unique distribution system.Distribution systems can be
33、 complex with many layers and a large number of intermediaries.Distribution systems in developing countries may be scattered or inefficient.Customs and government regulation can restrict distribution in global markets.Marketing in Action When the Chinese government banned door-to-door selling,Avon h
34、ad to abandon its traditional direct marketing approach and sell through retail shops.Channel Management DecisionsMarketing channel management:Selecting channel members.Managing and motivating channel members:Partner relationship management.Evaluating channel members.Caterpillar works closely with i
35、ts worldwide network of independent dealers to find better ways to bring value to customers.Public Policy and Distribution DecisionsLaws affecting channel decisions seek to prevent the exclusionary tactics that some firms might use to keep another from using a desired channel.Situations with the pot
36、ential to violate Clayton Act include:Exclusive distribution.Exclusive dealing.Exclusive territorial agreements.Tying agreements.Marketing Logistics Planning,implementing,and controlling the physical flow of materials,final goods,and related information from points of origin to points of consumption
37、 to meet customer requirements at a profit.Involves supply chain management.Figure 10.5:Supply Chain ManagementMarketing Logistics and Supply Chain ManagementGreater emphasis has been placed on logistics recently because:Firms can gain a competitive advantage when logistics result in better service
38、or lower prices.Improved logistics can lower costs.Increased product variety has created a need for improved logistics management.Improvements in information technology have created the means for major gains in distribution efficiency.Logistics effect the environment as well as the firms environment
39、al sustainability efforts.Marketing in Action Cost considerations of logistics are becoming increasingly important.At any given time,Ford has more than$500 million tons of finished vehicles,production parts,and aftermarket parts in transit,running up an annual logistics bill of around$4 billion.Goal
40、s of the logistics system:Deliver a targeted level of customer service at the least cost.Major logistics functions:Warehousing.Inventory management.Transportation.Logistics information management.Marketing Logistics and Supply Chain ManagementMarketing in Action More than 80%of American communities
41、depend solely on the trucking industry for the delivery of their goods.“Good stuff.Trucks bring it.”Marketing Logistics and Supply Chain ManagementWarehousing:How many,what types,and where?Storage warehousesDistribution centersInventory management:Balance between too much and too little inventoryJus
42、t-in-time logistics systemsRFID or“smart tag”technologyMarketing Logistics and Supply Chain ManagementTrucksRailroadsWater carriersPipelinesAir carriersInternetIntermodal transportationPiggyback,fishyback,trainship,airtruckTransportation alternatives:Integrated Logistics Management The logistics con
43、cept that emphasizes teamwork,both inside the company and among all the marketing channel organizations,to maximize the performance of the entire distribution system.Marketing in Action Third-party logistics companies such as Ryder help clients to tighten up sluggish,overstuffed supply chains,slash
44、inventories,and get products to customers more quickly and reliably.Integrated Logistics ManagementIntegrated logistics management requires:Cross-functional teamwork inside the company.Building logistics partnerships.Outsourcing to third-party logistics providers.1.Explain why companies use marketin
45、g channels and discuss the functions these channels perform.2.Discuss how channel members interact and how they organize to perform the work of the channel.3.Identify the major channel alternatives open to a company.4.Explain how companies select,motivate,and evaluate channel members.5.Discuss the n
46、ature and importance of marketing logistics and integrated supply chain management.Rest Stop:Reviewing the ConceptsAll 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
47、 otherwise,without the prior written permission of the publisher.Printed in the United States of America.Copyright2011PearsonEducation,Inc.Copyright2011PearsonEducation,Inc.PublishingasPrenticeHallPublishingasPrenticeHall9、静夜四无邻，荒居旧业贫。3月-233月-23Thursday,March 30,202310、雨中黄叶树，灯下白头人。22:06:5322:06:5322
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50、圆满，留一份不足，可得无限完美。22:06:5322:06:5322:06Thursday,March 30,202313、不知香积寺，数里入云峰。3月-233月-2322:06:5322:06:53March 30,202314、意志坚强的人能把世界放在手中像泥块一样任意揉捏。30 三月 202310:06:53 下午22:06:533月-2315、楚塞三湘接，荆门九派通。三月 2310:06 下午3月-2322:06March 30,202316、少年十五二十时，步行夺得胡马骑。2023/3/30 22:06:5322:06:5330 March 202317、空山新雨后，天气晚来秋。10