代写Business Marketing Channels and Market Logistics
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代写Business Marketing Channels and Market Logistics
•Business Marketing Channels and Market Logistics
•Recap from Lecture 6
•Classifications of new product
•NPS, PLM,
•Marketing of Business Services
•Branding business products
•The Business Marketing Channel
•The link between manufactures and customers is the channel of distribution. The channel accomplishes all the task necessary to effect a sale and deliver products to the customer.
•Task includes; negotiating, contracting, transferring title, communicating, storage.
•Fundamentally, channel management centers on the questions: Which channel task will be performed by the firm and which task will be performed by channel members?
•Importance of Channel Component
•Selecting the channel design mix is challenging
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1.The alternatives are numerous
2.Marketing goals differ between channel members
3.Business markets segments vary, thus it may require numerous channels concurrently
4.Business market environment constantly changes
5.Competition is stiff
6.Customer requirements change
7.Internet technology is changing the landscape
•
•All of this creates new opportunities and the need for fresh channel strategies
•Factors Making BM Channel
Different? (from those of consumer marketing)
•Geographical concentration of intermediaries
•Short channels
•Different characteristics and types of intermediaries
•Multi-channel or mixed system used often
•Channel Tasks Include:
•Contacting potential buyers
•Negotiating
•Selling
•Contracting
•Transferring title
•Training
•Financing
•Servicing the product
•Inventorying
•Transporting
•Storage
•Participants in BM Channels
•Manufacturer’s branch and regional sales offices
•Distributors or dealers
•Manufacturer’s representatives or agents
•Brokers
•Commission merchants
•Value – added resellers (VARs)
•Jobbers
•Channels Used in BM
•Broad classification: Direct and Indirect
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–Direct channels consist of:
•Direct sales or personal selling
•Direct marketing: Direct mail, Internet, and telemarketing
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–Indirect channels include:
•Distributors, manufacturer’s reps., brokers, commission merchants, jobbers, VARs
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•B2B Marketing Channels
•Direct Sales Force Required When:
•Sale is complex
•Product/service is highly customized
•Customers are large
•Products are complex
•Sales involve extensive negotiations
•Professionalism is required
•Customer requires direct contact
•
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•Then, seller must control the process to ensure proper implementation of total product package and to guarantee quick responses to market conditions
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• Indirect Distribution:
Generally Found Where…
üMarkets are fragmented and widely dispersed.
ü
üLow transaction amounts prevail.
ü
üBuyers typically purchase a number of items.
•Typical Sales Cycle:
Tasks Performed Through Sales Process
•Customer Contact Points
•Multi-channel strategy is used when it is necessary to reach a large business market that is composed of large, mid- and small-sized customers.
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•First, arrange customers in terms of “relative cost of sales” from top to bottom. Use:
•Direct sales for large accounts
•Indirect distribution for middle and smaller accounts.
•Business Partner’s Key Role
•A key role is to generate leads for channel members.
•They can do it by:
–Internet
–Direct mail
–Tele-channels, etc.
•More complex roles will be performed by more sophisticated members (professional sales people – direct or indirect)
•Multi-Channel Integration Map
•Channel Design:
Framework Used
•Channel Design
•Developing Channel Objectives - Based on following factors:
–Marketing objectives
–Customer needs
–Product characteristics
•Analysing Channel Constraints - Factors constraining selection of ideal channel structure are:
–External environment (legal issues)
–Competitive tactics
–Company’s constraints
–Product characteristics
–Customers’ geographic locations
•Analysing Channel Tasks
–Which tasks the company can perform effectively and efficiently, and which by intermediaries
•Channel Design
•Identifying Channel Alternatives - Involves four major issues:
–Types of Intermediaries
•Distributors or dealers
•Manufacturer’s representatives (reps) or agents
•Brokers
•Commission merchants
•Jobbers
•Channel Design
•Identifying Channel Alternatives - Involves four major issues:
–Number of Intermediaries - Three alternative strategies available:
•Intensive distribution
•Selective distribution
•Exclusive distribution
•Manufacturer should consider following three factors for selecting one of the three strategies:
–End – users’ willingness to search
–Do the intermediaries make enough money ?
–Price competition among intermediaries
•Judgment to be used for exact number of intermediaries
•Channel Design
•Identifying Channel Alternatives - Involves four major issues:
–Number of Channels
•Depending on needs of market segments, Multi-channel system is used often
•
–Terms and Responsibilities of Channel Members
•Agreements between marketer and channel members to include:
–Objectives
–Responsibilities / tasks of both parties
–Sales policy
–Territory or market segment to be covered
•Channel Design
•Evaluation of Channel Alternatives
–Criteria used:
•Economic performance
•Degree of control
•Adaptability to changing market situations
•Superior value to target customer
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•Selection of Channel Structure
–Based on satisfying needs of target segments
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•Managing or Administering Channel Members
•It includes:
–Selecting intermediaries / channel members
–Motivating channel members
–Controlling or managing channel conflicts
–Evaluating performance of channel members
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•Selecting Channel Members
•Selection process consists of :
1.Generating a list of intermediaries through ads., database firms, trade associations
2.Visiting prospective channel members
3.Negotiating with short-listed intermediaries
4.Finalising agreements
•Selection criteria generally used:
–Location
–Relevant experience
–Financial standing
–Infrastructure
Specific criteria may differ for different types of intermediaries and product – market situations of companies.
•Motivating Intermediaries
•First understand intermediaries’ needs
•Then use appropriate techniques:
–Partner relationship management (PRM) system
–Vendor managed inventory (VMI) system
–Reasonable discount / margins
–Distributor council meetings
–Training and coaching
–Developing channel positioning
–Quick response system
–Computer aided management techniques
•Controlling Channel Conflicts
•Undertake surveys of intermediaries to assess sources of conflicts, such as:
–Differences in objectives, interests, perceptions
–Dealings with customers
–Compensation
–Unclear territory boundaries
•Methods for managing / controlling conflicts
–Effective communication network
–Joint goal – setting
–Diplomacy, mediation, or arbitration
–Vertical marketing system (VMS)
•Evaluating Channel Member’s Performance
•Purpose
–Know good / bad performing channel members
–Reward / counsel, retrain, re-motivate, or terminate
•Evaluation Criteria / factors
–Sales achieved vs quota
–Customer service / satisfaction
–New customers generated
–Market feedback
Assign weights to above factors
Use weighted factor method for evaluation
•Supply Chain Management (SCM)
•Definition
–The process of planning, implementing, and controlling flow and storage of raw materials, finished goods, and related information from the supplier to the customers for the purpose of conforming to customer requirements
•SCM Framework
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•Supply Chain Includes Getting- On time and at the right price!
•Supply Chain Management (SCM)
•SCM Objectives
–Customer satisfaction by superior value
–Reduce cost, waste, duplication
–Minimise order-to-delivery time
–Superior delivery service
•Functions Integrated in SCM
–Purchase, design, planning, production, order processing, inventory control, warehousing, material handling, customer service
•Organisations involved in integration of functions, processes, policies, databases are:
–Suppliers, distributors, transporters, IT firms, supplier’s supplier, customer’s customer
•Supply Chain Management (SCM)
•Components of a Supply Chain
– Upstream supply chain
– Internal supply chain
– Downstream supply chain
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• Trends in Supply Chain Management
– Use of technology
– World class supply chain management
– Lean and agile supply chains
•Successful SCM programs
Can improve overall company performance by:
1.Revenue enhancement
2.Cost reduction
Focuses on integrating the aforementioned critical processes across all organizational borders for purposes of:
–Enhancing flow
–Lowering costs
–Increasing profits
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•Successful SCM programs
Leading supply-chain-oriented firms focus on:
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a.Monitoring actual user demand rather than forcing products into the market that may not sell quickly.
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a.The result is to minimize the flow of raw material, finished products and packaging material, thus minimizing inventory throughout the entire supply chain.
•Partnerships: Critical Ingredient
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§Movement towards SCM made companies realize that adversarial commerce is inefficient and costly.
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§This limits the ability to compete in a global economy.
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§A better approach is to develop relationships (partnerships) between members of the supply chain but due to proprietary interest, this requires…TRUST.
•Logistics Management
•Definition
–Design and management of all activities (mainly transportation, warehousing, inventory) necessary to make materials available for manufacturing and finished goods available to customers as needed
•Scope of logistics
–To manufacturing and service companies interested in maximising customer service
–Includes inventory control, customer service, transportation, warehousing, order processing, communication, packaging, material handling
•Trend in Logistics
–Outsourcing to a third party logistics (3PL) service provider
•Market Logistics (ML)
•Also called as Physical Distribution (PD)
•ML/PD includes delivering finished goods to business customers and distributors / dealers
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•Market Logistics (ML)
•Tasks of Market Logistics (ML)
–Major tasks of ML /PD:
•Transportation, warehousing,
•Inventory control, customer service
–Other tasks:
•Packaging, Order processing, material handling
•Communication, locating factory and warehouses
•Complex / conflicting relationship between tasks
–Approaches for managing conflicts:
•Minimising total distribution cost
•ROI / Total systems / Channel integration
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•Decisions in Major Cost Centres of Logistics
•Major Cost Centres of Logistics and Marketing Logistics are:
–Transportation
–Warehousing
–Inventory
–Order Processing
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•Decisions in Major Cost Centres of Logistics
–Transportation Decisions
•Affect customer satisfaction
•Objectives
–Superior delivery service
–Lowest cost
•Decisions include selection of:
–Transportation modes
–Individual carriers
•Transportation modes:
–Rail, air, truck, waterway, pipeline
–Combination / Intermodel transportation
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•Selection criteria:
–Speed
–Availability
–Cost
–Dependability
–Capability
–Frequency
•Individual carriers:
–Common
–Contract
–Private
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•Decisions in Major Cost Centres of Logistics
•Warehousing Decisions
–Objectives to be achieved:
•Improve customer delivery service
•Increase sales
–Channel structure of a company influences warehousing decisions
–Factors considered to decide if a company should use
•Private or
•Public warehousing facility:
–Customer service level required
–Investment to be made
–Operating cost
–Private warehousing by owning warehouse space
–Public warehousing by renting warehousing space
•Decisions in Major Cost Centres of Logistics
•Inventory Decisions
–Objectives
•Minimise harmful effects due to deficiencies in the logistical system
•Meet customer service needs
•Minimise costs
–Inventory cost includes
•Storage space charges
•Cost of capital
•Taxes and insurance
•Inventory risk cost
•Decisions in Major Cost Centres of Logistics
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•Decisions in Major Cost Centres of Logistics
•Order Processing (OP) Decisions
–OP Starts with order receipt from a customer and ends when the customer receives the product as per delivery schedule and quantity in the order.
–Functions involved in OP:
•Sales, marketing, finance, marketing logistics, production planning and control (PPC) and production
–Effective coordination and communication ensured by:
•Training relevant people
•Rewarding OP group
•Appointing a head of OP
•Customer satisfaction depends on success of OP, which is possible with effective coordination and communication
代写Business Marketing Channels and Market Logistics
