Marketing_L8_2013-2014

Content for today

Marke&ng Channels

Delivering Customer Value

Objec&ves

•  Supply Chains and the Value Delivery Network

•  The Nature and Importance of Marke&ng

Channels

•  Channel Behavior and Organiza&on

•  Channel Design Decisions

•  Channel Management Decisions

•  Marke&ng Logis&cs and Supply Chain

Management

Supply Chains and the Value

Delivery Network

Supply Chain

•  upstream partners

The set of firms that supply the raw materials, components, parts, informa&on, finances, and exper&se needed to create a product or service.

•  downstream partners

Marke&ng channels that look toward the customerwholesalers and retailers, form a vital connec&on between the firm and its customers.

•  Supply chain may be too limited—it takes a make-and-sell view of the business.

•  Demand chain suggests a sense-and- respond view of the market.

Iden&fying the needs of target customers, to which the company responds by organizing a chain of resources and ac&vi&es with the goal of crea&ng customer value.

Value delivery network: In making and marke&ng just one of its many models— say, the Ford Escape hybrid—Ford manages a huge network of people within Ford plus thousand of suppliers and dealers outside the company who work together to give final customers “the most fuel-e cient SUV on the market.”

The Nature and Importance

of Marke&ng Channels

•  Marke&ng channel (or distribu&on channel)

A set of interdependent organiza&ons that help make a product or service available for use or consump&on by the consumer or business user.

Kodak ini>ally sold its EasyShare printers only in Best Buy stores because of the retailer’s on-the-floor sales sta and their ability to educate buyers on the economics of paying a higher ini>al printer price but lower longterm ink costs.

Imagina>ve distribu>on systems to gain a compe>>ve advantage

How Channel Members Add Value

Why do producers give some of the selling job to channel partners?

Producers use intermediaries because they create greater e ciency in making goods available to target markets.

Through their contacts, experience, specializa>on, and scale of opera>on, intermediaries usually o er the firm more than it can achieve on its own.