Transcript Chapter Twelve Marketing Channels Delivering Customer Value Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter 12 - slide 1

Chapter Twelve
Marketing Channels
Delivering Customer Value
Copyright © 2009 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 12 - slide 1
Marketing Channels
Delivering Customer Value
Topic Outline
1. Supply Chains and the Value Delivery
Network
2. The Nature and Importance of Marketing
Channels
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 12 - slide 2
1. Supply Chain Partners
The supply chain consists of two types of
partners:
Upstream partners include raw material
suppliers, components, parts, information,
finances, and expertise to create a product
or service
Downstream partners include the marketing
channels or distribution channels that look
toward the customer
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 12 - slide 3
Supply Chains and
the Value Delivery Network
Supply Chain Views
From supply chain to demand chain…
Supply chain “make and sell” view includes the firm’s
raw materials, productive inputs, and factory
capacity
Demand chain “sense and respond” view suggests that
planning starts with the needs of the target
customer, and the firm responds to these needs by
organizing a chain of resources and activities with
the goal of creating customer value
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 12 - slide 4
Supply Chains and
the Value Delivery Network
Value Delivery Network
• Value delivery network is the firm’s
suppliers, distributors, and ultimately
customers who partner with each other
to improve the performance of the entire
system
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 12 - slide 5
2. The Nature and Importance of
Marketing Channels
2.1. How Channel Members Add Value
a. Intermediaries offer producers greater
efficiency in making goods available to
target markets. Through their contacts,
experience, specialization, and scale of
operations, intermediaries usually offer the
firm more than it can achieve on its own.
b. Using intermediaries reduces number of
channel transactions.
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Publishing as Prentice Hall
Chapter 12 - slide 6
The Nature and Importance of
Marketing Channels
How Channel Members Add Value
c. From an economic view, intermediaries
transform the assortment of products
into assortments wanted by consumers
d. Channel members add value by
bridging the major time, place, and
possession gaps that separate goods
and services from those who would use
them
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Publishing as Prentice Hall
Chapter 12 - slide 7
The Nature and Importance of
Marketing Channels
2.2. Functions performed by channel members
Information
Promotion
Contact
Matching
Negotiation
Physical
distribution
Financing
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Risk Taking
Chapter 12 - slide 8
The Nature and Importance of
Marketing Channels
3. Channel structure and levels
See figure 12.2, page 365
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Publishing as Prentice Hall
Chapter 12 - slide 9
The Nature and Importance of
Marketing Channels
4. Number of channel members
Depending on the distribution policy of the firm:
Intensive
Selective
Exclusive
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 12 - slide 10
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Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 12 - slide 11