Upload
gitanjali27
View
214
Download
0
Embed Size (px)
Citation preview
7/29/2019 services retailing AND LOGISTIICS.ppt
1/47
2-1
7/29/2019 services retailing AND LOGISTIICS.ppt
2/47
2-2
Goods - things you can touch - tangible
Services - things you cant touch - but youcan see their effect intangible services are not physical, they are
intangible
7/29/2019 services retailing AND LOGISTIICS.ppt
3/47
2-3
A Service is a type of a product.
a deed performed by one party foranother
Discussions about the marketing of goods
apply to services as well.Services have special characteristics thatmake them different than products.
Service
7/29/2019 services retailing AND LOGISTIICS.ppt
4/47
2-4
A product without physical characteristics;
a bundle of performance and symbolicattributes designed to produce consumerwant satisfaction.
Service
7/29/2019 services retailing AND LOGISTIICS.ppt
5/47
2-5
Tangible
touch
see
taste
smell
Intangible
cant see
cant touch
cant smell
cant taste
Tangible / Intangible Attributes
7/29/2019 services retailing AND LOGISTIICS.ppt
6/47
2-6
Goods and Services: Scale ofElemental Dominance
7/29/2019 services retailing AND LOGISTIICS.ppt
7/47
2-7
1. Intangibility - u cant touch this
2. Production (or performing the service)and Consumption (using the service) -
happens at the same time
3. Heterogeneity - services are notalways delivered the same way
4. Perishability - cannot be put ininventory or stored for later use
ie. You cant buy 2 haircuts
4 Characteristics of Services
7/29/2019 services retailing AND LOGISTIICS.ppt
8/47
2-8
1. Intangibility - u cant touch this
Services cannot be stored
Services cannot be protected throughpatents
- therefore a really great travel package and
service can be copied
a really great physical object can be
patented, and NOT allowed to be copied
Characteristics of Services
7/29/2019 services retailing AND LOGISTIICS.ppt
9/47
2-9
1. Intangibility - u cant touch this
Hard to explain and display Services if you
cant see them
Prices are difficult to set - depends on
customers expectations
Characteristics of Services
7/29/2019 services retailing AND LOGISTIICS.ppt
10/47
2-10
1. Intangibility - u cant touch this
Marketing Strategies
stress tangible cues, eg. Smiling face use personal information, sources, references
use word-of-mouth
contact customers after they buy to stimulate
continued enthusiasm and hope they talk it up
Characteristics of Services
7/29/2019 services retailing AND LOGISTIICS.ppt
11/47
2-11
2. Inseparability of Production (orperforming the service) and Consumption(using the service) - happens at the same
time
Characteristics of Services
Many people involved in delivering a service
mass production of services is hard to do
7/29/2019 services retailing AND LOGISTIICS.ppt
12/47
2-12
2. Inseparability of Production (orperforming the service) and Consumption(using the service) - happens at the same
time
Characteristics of Services
Marketing Strategies
Emphasize how much you train your people - so
their ability to give you good service will be high
Have many locations so customers can get to you
ie. Insurance sales come to your home
7/29/2019 services retailing AND LOGISTIICS.ppt
13/47
2-13
3. Heterogeneity - services are not alwaysdelivered the same way
It is very difficult to standardize services
eg. A machine can make ice cream cones a
standard size 100% of the time
A person filling an ice cream cone with a
scoop cannot do it the same amount each
time, unless you use a machine to dispense
the ice cream
Characteristics of Services
7/29/2019 services retailing AND LOGISTIICS.ppt
14/47
2-14
3. Heterogeneity - services are not alwaysdelivered the same way
It is very difficult to standardize services
eg. A Taxi driver cannot drive you to the office
in exactly the same time each day because
the traffic patterns change
eg. A travel agent can sell you a vacation
package - but cannot guarantee you will like
the trip exactly the same way another tourist
did.
Characteristics of Services
7/29/2019 services retailing AND LOGISTIICS.ppt
15/47
2-15
4. Perishability - cannot be put ininventory or stored for later use
ie. You cannot go to the doctor once for all
your life
Demand fluctuates and changes, sometimes
depending on the season, or weather
eg. Taxi in the rain, vacation in summer
Characteristics of Services
7/29/2019 services retailing AND LOGISTIICS.ppt
16/47
2-16
Service Providers
service providers have product lines andproduct mixes as well
examples
Mastercard
insurance
telephone services
cable services
ISPs - internet service providers
airlines, first class, economy class
banks
7/29/2019 services retailing AND LOGISTIICS.ppt
17/47
2-17
=- Kinds of
Service RetailingRented goods services
Owned goods services
7/29/2019 services retailing AND LOGISTIICS.ppt
18/47
2-18
Four Characteristics of
Services RetailingIntangibility
Inseparability
Perishability
Variability
7/29/2019 services retailing AND LOGISTIICS.ppt
19/47
2-19
Figure 2.8a: Characteristics of
Service RetailingIntangibility
No patent protection possible
Difficult to display/communicate service benefits
Service prices difficult to set
Quality judgment is subjective
Some services involve performances/experiences
7/29/2019 services retailing AND LOGISTIICS.ppt
20/47
2-20
Figure 2.8b: Characteristics of
Service RetailingInseparability
Consumer may be involved in service production
Centralized mass production difficult
Consumer loyalty may rest with employees
7/29/2019 services retailing AND LOGISTIICS.ppt
21/47
2-21
Figure 2.8c: Characteristics of
Service RetailingPerishability
Services cannot be inventoried
Effects of seasonality can be severe
Planning employee schedules can be complex
7/29/2019 services retailing AND LOGISTIICS.ppt
22/47
2-22
Figure 2.8d: Characteristics of
Service RetailingVariability
Standardization and quality control hard to achieve
Services may be delivered in locations
beyond control of management
Customers may perceive variability
even when it does not actually occur
7/29/2019 services retailing AND LOGISTIICS.ppt
23/47
2-23
Figure 2-9: Consumer Perceptions
of Service Retailing
7/29/2019 services retailing AND LOGISTIICS.ppt
24/47
2-24
Figure 2-10: Innovative Marketing
at McDonalds
7/29/2019 services retailing AND LOGISTIICS.ppt
25/47
2-25
Figure A2-1: Lessons in
Service Retailing
7/29/2019 services retailing AND LOGISTIICS.ppt
26/47
2-26
Retail Bank Components
Liabilities
WealthManagement Assets
Fee Based
Personal LoanCredit Cards
MortgageAuto
Checking Accounts
Savings AccountsTime Deposit
7/29/2019 services retailing AND LOGISTIICS.ppt
27/47
2-27
Pillars of Retail
(New) ParadigmDistributionsRisks/Analytics
Operations/Collections
Customer Service
Product Offering
Banking
7/29/2019 services retailing AND LOGISTIICS.ppt
28/47
2-28
Distribution Strategy
BuildingDistribution
7/29/2019 services retailing AND LOGISTIICS.ppt
29/47
2-29
7/29/2019 services retailing AND LOGISTIICS.ppt
30/47
2-30
Logistics
Process of
managing the
flow of
merchandise
from vendor to
distribution
center to storeto customer
7/29/2019 services retailing AND LOGISTIICS.ppt
31/47
2-31
Distribution Centers
Very sophisticated
Big
Few employees very automated
Ideally, not used to store goods; -- take off
delivery truck and load truck destined for aparticular store
7/29/2019 services retailing AND LOGISTIICS.ppt
32/47
2-32
Who uses distribution centers
Retailers who have widely fluctuating demand for
specific items at the store level more accurate
sales forecast is demand is aggregated across
stores
Retailers who require frequent replenishment
Retailers who carry large # of items
Retailers with large number of outlets within 150200
miles
7/29/2019 services retailing AND LOGISTIICS.ppt
33/47
2-33 2 33
What is logistics?
Procurement
Movement
Storage
Materials
Parts
Finished goods
Logistics is the total process of planning, implementing, and
coordinating the physical movement of merchandise from
manufacturer (wholesaler) to retailer to customer in the most
timely, effective, and cost-efficient manner possible
7/29/2019 services retailing AND LOGISTIICS.ppt
34/47
2-34 34
Goals of Logistics
Economy in movement of goods (external
internal movement)
Accuracy in order management
Time management of shipments and deliveries
Shelf-life and replenishment of perishable goods
Coordination with suppliers and third-party
service providers
Backup plans and return shipments
7/29/2019 services retailing AND LOGISTIICS.ppt
35/47
2-35 35
Logistics spans across thefunctions of
Supply Chain Management
Order Processing & Fulfillment
QR (Quick Response) ECR (Effecient Customer Response)
Transportation & Warehousing
Customer Transactions & Customer Satisfaction
Inventory Management Logistics
7/29/2019 services retailing AND LOGISTIICS.ppt
36/47
2-36 36
Performance Goals
Relate costs incurred to specific logisticsactivities
Place and receive orders as easily, accurately,
and satisfactorily as possible Minimize the time between ordering and
receiving merchandise
Coordinate shipments from various suppliers
Have enough merchandise on hand to satisfycustomer demand, without having so muchinventory that heavy markdowns will benecessary
7/29/2019 services retailing AND LOGISTIICS.ppt
37/47
2-37 2 37
Performance Goals_2
Place merchandise on the sales floorefficiently
Process customer orders efficiently and in amanner satisfactory to customers
Work collaboratively and communicateregularly with other supply chain members
Handle returns effectively and minimizedamaged products
Monitor logistics performance
Have backup plans in case of breakdowns inthe system
7/29/2019 services retailing AND LOGISTIICS.ppt
38/47
2-38 38
Supply Chain Management
The supply chain is the logistics aspect of
a value delivery chain
Parties involved
Manufacturers
Wholesalers
Third-party specialists
Retailer
7/29/2019 services retailing AND LOGISTIICS.ppt
39/47
2-39 39
Supply Chain Management
Facilitating system for movement of goods
or services from supplier to customer
Coordinates suppliers, intermediaries,
third-party service providers and
customers
CPFR
7/29/2019 services retailing AND LOGISTIICS.ppt
40/47
2-40 40
CPFR(Collaborative Planning, Forecasting and
Replenishment)
Inventory replenishment
Information sharing
Satisfying customer demands Economy in inventory, logistics and
transportation expenditure
7/29/2019 services retailing AND LOGISTIICS.ppt
41/47
2-41 41
3PL
Procurement (Sourcing)
Order Management
Production
Distribution
After Sales Service
Reverse Logistics
Warehousing Transport
7/29/2019 services retailing AND LOGISTIICS.ppt
42/47
2-42 42
Order Processing &Fulfillment
Starts with product enquiry
Ends with delivery or return
T t ti &
7/29/2019 services retailing AND LOGISTIICS.ppt
43/47
2-43 43
Transportation &Warehousing
No. of shipments
Minimum / Economic Order Quantity
Shipment Ownership Infrastructure quality
Non-store retailing
7/29/2019 services retailing AND LOGISTIICS.ppt
44/47
2-44 44
Customer Transactions & CustomerService
Outbound logistics
Retail stores
Non-store retailers Webtailers
Direct Sellers
Customer Service vis--vis logistical
efficiency
7/29/2019 services retailing AND LOGISTIICS.ppt
45/47
2-45 45
Warehousing
Centralized Warehousing
Direct Store Distribution
7/29/2019 services retailing AND LOGISTIICS.ppt
46/47
2-46 46
Inventory Management
Cost effectiveness
Vendor managed inventory
Loss in inventory Employee theft
Customer shoplifting
Vendor fraud and errors
Electronic surveillance
Reverse Logistics
7/29/2019 services retailing AND LOGISTIICS.ppt
47/47
Problems Balancing Inventory Levels
The retailer wants to be appealing and never
lose a sale by being out of stock; it does not
want to be stuck with excess merchandise
What fad merchandise and how much should becarried?
Customer demand is never completely
predictable
Shelf space allocation should be linked tocurrent revenues