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Marketing FINAL
Ch. 15
| Term | Definition |
|---|---|
| Benefits of Effective Supply Chain Management + Marketing Channel Management | - Lower inventory, transportation, warehousing, and packaging costs - Improved customer service - Higher revenues - Increased performance + profitability - Greater supply chain flexibility --> No stock outs |
| Supply Chains Systems | use different methods for different products like food, staples, seasonal, fad, etc. |
| Food / Staple Products | See experts in the industry develop product specifications Have multiple manufacturing plants approved Work out logistics Use pull distribution --> Pull when needed - order when more is needed |
| Seasonal / Fad / Premiums | Work w/ influence → movie, brands, etc pay a fee to use their images, characters, etc Work w/ approved suppliers Need designers to sketch product Brokers Factories Logistics Financing Push Distribution |
| Example of Type of Product and Mission Dictates the System they Use | Ex: Aldi → Simple System - EDLP, US only, privately held - Use straight rebuys, find ¾ suppliers and stick with them → consistent same products Ex: Von Maur High-fashion, premium pricing, high assortment, low volume, SEASONAL fashion cycles |
| Vertical Integration | Buy backwards or forwards into the supply chain |
| Backwards Vertical Integration | buying behind what you do Benefits - Gain economies of scales, lower costs, less reliance on suppliers, dependable supply Negatives - Takes attention away from core business, expensive, reduces flexibility Ex: Apple owns chip production |
| Forward Vertical Integration | manufactures buy forward into the supply chain Benefits - More profit, easier to control Negatives - Expensive to operate stores, website, consumer channel, loss of focus on core business Ex: Nike owns Nike Stores Ex: Apple owns Apple Stores |
| Hellman's Supply Chain and Forward Channels | Manufacturer Side - Get materials + resources from other manufacturers Distribution - Grocery like Walmart Stores - Food brokers --> serves restaurant chains Advertising - Consumers want it |
| Fulfillment Center | similar to a distribution center but instead ships to consumers directly |
| Distribution Center | facility for the receipt, storage, and redistribution of goods to other stores plus ships to store |
| Wholesaler | firms that buy products from manufacturers and resell them to retailers |
| Retailers | sell products directly to consumers |
| Marketing Channels | Direct or Indirect |
| Direct Marketing Channel | No intermediaries between buyer + seller |
| Indirect Marketing Channel | One or more intermediaries work w/ manufactures to provide goods and services to customers |
| How do intermediaries add value? | - Break bulk - Providing assortment - Hold inventory - Place utility and form utility - Selling efficiency - Customer convenience - Reduces number of transactions |
| Channel Conflict | Vertical Conflict; Manufacturer + Retailer + Wholesaler are fighting over goals, roles, rewards Horizontal Conflict; Conflict between two parties of the same level --> Retailer vs Retailer |
| Power in the Marketing Channel | exists when one firm has the means to dictate the actions of another Rewards; discount Coercion; threats Referent; connections Expertise; past experience / knowledge Information; providing or withholding Legitimate; contract |
| Example of Conflict | Pepsi vs Coke - Coke is good at distribution, but Pepsi is good at diversity - Coke went to Kroger, said only use my water and we will give you a discount → Kroger accepted → Pepsi said if you take out our water, you cant have our chips |
Created by:
Zetiris
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