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Chapter 16: Supply Chain and Channel Management

by: Andrea Lopez

Chapter 16: Supply Chain and Channel Management MKT 301

Marketplace > University of Miami > MKT 301 > Chapter 16 Supply Chain and Channel Management
Andrea Lopez
GPA 3.8
Professor Kettle

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Chapter 16 Notes and Questionnaire. The notes are formatted nicely to make them clear and simple. The questions attached, are all answered in depth.
Professor Kettle
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This 3 page Bundle was uploaded by Andrea Lopez on Wednesday April 29, 2015. The Bundle belongs to MKT 301 at University of Miami taught by Professor Kettle in Spring2015. Since its upload, it has received 145 views.

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Date Created: 04/29/15
CHAPTER 16 SUPPLY CHAIN amp CHANNEL MANAGEMENT The Importance of Marketing Channel Supply Chain Management 0 What is the supply chain All activities and institution required to get a product to the customers Suppliers Manufacturers Warehouses Stores Customer Transportation 0 What is a Marketing Channel All activities and institutions required to get a product to the customers 0 Same as a Supply Chain 0 Supply Chain for Gasoline Oil extraction from your car Pipelines S upertankers Re neries Barges Pipelines Fuel Terminals o Tanker Truck Gas Stations 0 Supply Chain for Cars Raw materials a Trains Trucks Ships Part Manufacturers 0 Trains Trucks Ships Aircraft Auto Manufacturers Trains Trucks Ships Auto Dealers 0 Marketing Channels Add Value Each member adds value 0 Raw Materials Extractions 0 Transportation 0 Components Manufacturers 0 Product Manufacturers Distributors Retailers 0 Making Channel Information Flow Through Marketing Channeb VendorManaged Inventory 0 Manufacturer not the retailer manages inventory Consignment manufacturer owns the inventory Pull Supply Chain 0 Merchandise orders based on sales Push Supply Chain 0 Merchandise orders based on forecasts 0 Making Merchandise Flow Through Marketing Channel Distribution Centers vs Direct Store Delivery 0 More accurate demand forecasts 0 Average over multiple stores 0 Reduce amount of instore stock 0 Reduce the chances of a quotstockoutquot Saves money page 2 0 Shelf space less costly 0 Managing the Supply Chain Independent Conventional supply chain 0 Channel members are independent Vertical Marketing System 0 Channel members act as a uni ed system Contractual Vertical Marketing System 0 No formal ownership 0 Formal contracts between channel members 0 Economies of scale 0 Coordination 0 Reduce con ict 0 Ex Franchises Corporate Vertical Marketing System 0 Formal ownership CHAPTER 16 STUDY GUIDE QUESTIONS 1 What is the difference between an indirect and a direct marketing channel a Direct is when a customer can purchase goods from the manufacturer without needing to go through a retailer or intermediary generally online or at company stores b Indirect is when one or more intermediaries work with manufacturers to provide goods and services to customers 2 What are the differences among the three types of vertical marketing systems a Administered Vertical Marketing System there is no common ownership or contractual relationships but the dominant channel member controls or holds the balance of power b Contractual Vertical Marketing System independent rms at different levels of the marketing channel join together through contracts to obtain economies of scale and coordination and to reduce con ict c Corporate Vertical Marketing System the parent company has complete control and can dictate the priorities and objectives of the marketing channel because it own multiple segments of the channel such as manufacturing plants warehouse facilities and retail outlets 3 What is the difference between a push and a pull marketing channeW a Push merchandise is allocated to stores based on previous sales forecasts which is likely to be a collaborative process between the manufacturer wholesaler and retailer b Pull the amount of merchandise sent to the sore is determined based on sales data captures by POS terminals Customers pull the product into the marketing channel by demanding it


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