CHAPTER

Day 20

BUS 222

Agenda

• Questions?• Assignment 6 Not Corrected yet

– Will be corrected by next class

• Assignment 7 will be posted by next class

• Quiz 5 is Corrected– 3 A’s, 3 B’s, 2 C’s, 1 D and 4 F’s

• Quiz 6 is April 21. One week from today – Chaps 15 & 16, 30 Mins– 10 M/C questions and one extra credit on types of retailers

• Finish Discussion on Supply Chain and Channel Management

• Begin Discussion on Retailing and Multichannel Marketing

Rest Of Semester Schedule

• April 17– Chap 17

• April 21– Quiz 6 ( Chap 15 & 16) – Chap 18

• April 24– Chap 18

• April 28– Chap 19– Assignment 7 Due

• May 1– Quiz 7 (chaps 17, 18 &

19)

• May 5 @ 10 AM– Marketing Plan

Presentations

• May 7 @Midnight– Marketing Plans due

CHAPTER

SUPPLY CHAIN AND CHANNEL MANAGEMENT

15

McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

LEARNING OBJECTIVES

Supply Chain and Channel Management

LO1Define supply chain managementLO2Recognize the value added by the

supply chain.LO3Describe the flow of merchandise

and the flow of information in the supply chain.

LO4Describe how supply chains are managed.

Inventory Management Through Just-In-Time Systems

Just-in-time (JIT)Just-in-time (JIT) Quick response (QR)

Quick response (QR)

Cou

rtesy

Tu

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lar

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Benefits of JIT Systems

James Leynse/Corbis

1. How does merchandise flow through a typical supply chain?

2. Why have just-in-time supply chain systems become so popular?

Check Yourself

Managing the Marketing Channel and Supply Chain

Supply chain or channel conflict

Supply chain or channel conflict

Cou

rtesy

Th

e S

tan

ley W

ork

s

Managing the Marketing Channel and Supply Chain through Vertical Marketing

Systems

Independent or conventional supply chain

Independent or conventional supply chain

McDonald’s Vertical Marketing/Supply Chain

Types of Vertical Marketing Systems

Managing Marketing Channels and Supply Chains Through Strategic Relationships

Relationship of supply chain members

Use

d b

y P

erm

issi

on

of

Deu

tsch

In

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Ag

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Pro

cess

or

Pro

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Board

1. What are the differences between the three types of vertical marketing systems?

2. How do firms develop strong strategic partnerships with their supply chain partners?

Check Yourself

CHAPTER

RETAILING AND MULTICHANNEL MARKETING

16

McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

LEARNING OBJECTIVES

Retailing and Multichannel Marketing

LO1 Discuss the four factors manufacturers should consider as they develop their strategy for working with retailers.

LO2 Outline the considerations associated with choosing retail partners.

LO3 List the three levels of distribution intensity. LO4 Describe the various types of retailers.LO5 Describe the components of a retail strategy.LO6 Identify the benefits of stores. LO7 Identify the benefits of multichannel retailing. LO8 Detail the challenges of multichannel retailing.

Factors for Establishing a Relationship with Retailers

Choosing a Retail Partner

Choosing Retail PartnersChannel Structure

©M Hruby

Choosing Retail PartnersCustomer Expectations

Choosing Retail PartnersChannel Member Characteristics

Choosing Retail PartnersDistribution Intensity (number of partners)

©Je

ff G

reen

berg

/Ph

oto

Ed

it

©S

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n V

an

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en

/Ph

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it

Distribution Intensity

Courtesy Birkenstock USA

Check Yourself

1. What issues should manufacturers consider when choosing retail partners?

2. What is the difference between intensive, exclusive, and selective levels of distribution intensity?

Retailer’s Reaction?C

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rtesy

ww

wad

bu

sters

org

Types of Retailers

Food Retailers

Peapod Website

General Merchandise Retailers

Kmart and Sears

GNC Private Brands

Courtesy GNC Corporation Courtesy GNC Corporation

Service Retailers

1. What strategies distinguish the different types of food retailers?

2. What strategies distinguish the different types of general merchandise retailers?

3. Are organizations that provide services to consumers considered to be retailers?

Check Yourself

Developing a Retail Strategy Using the Four P’s: Product

Providing the right mix of merchandise and servicesProviding the right mix of merchandise and services

AP Photo/David Kohl

Price

Price defines the value of both the merchandise and the service provided

Price defines the value of both the merchandise and the service provided

Build-a-Bear Workshop Commercial

Courtesy DDB - London

Promotion

Retailers use a wide variety of promotions, both within their retail

environment and through mass media

Retailers use a wide variety of promotions, both within their retail

environment and through mass mediaC

ou

rtesy

Bass

Pro

Sh

op

s

AP P

hoto

/Mark

Hu

mp

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y

Place

Convenience is a key ingredient to

success

Convenience is a key ingredient to

success

©M Hruby

The McGraw-Hill Companies, Inc/Jill Braaten, photographer

Wal-Mart Faces Biggest Civil Rights Suits

http://www.propublica.org/article/the-impact-and-echoes-of-the-wal-mart-discrimination-case

Benefits of Stores for Consumers

Benefits of the Internet and Multichannel Retailing

How does the Internet Improve Multichannel Shopping?

Cou

rtesy

LL

Bean

Perceived Risk in Internet Shopping

Courtesy Zafu

Effective Multichannel Marketing