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MKTG 463 Chapter 14 Book Notes from Marketing Channel Strategy Palmatier - Ann Trampas UIC

by: David Kavalerchik

MKTG 463 Chapter 14 Book Notes from Marketing Channel Strategy Palmatier - Ann Trampas UIC 463

Marketplace > University of Illinois at Chicago > Marketing > 463 > MKTG 463 Chapter 14 Book Notes from Marketing Channel Strategy Palmatier Ann Trampas UIC
David Kavalerchik
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About this Document

Includes Efficient Consumer Response, Quick Response Logistics and Supply Chain Strategies.
Marketing Channels and E-Commerce
Ann Trampas
Class Notes
UIC MKTG463 463 Ann Trampas Anne ecommerce marketing channels
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This 2 page Class Notes was uploaded by David Kavalerchik on Sunday February 28, 2016. The Class Notes belongs to 463 at University of Illinois at Chicago taught by Ann Trampas in Spring 2016. Since its upload, it has received 39 views. For similar materials see Marketing Channels and E-Commerce in Marketing at University of Illinois at Chicago.


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Date Created: 02/28/16
Efficient Consumer Response (ECR) Supplying only the products the consumers need. There are 4 areas with potential for  improvement.  1. Continuous Replenishment Programs (CRP) : Needed to end the bullwhip  effect which is when information is distorted as it passes along the channels. CRP  requires standardized codes/methods which can be achieved with electronic data  interchange (EDI). EDI’s move information over secure communication circuits.  2. Calibrating pricing and promotions: promotions from manufacturers lead to  huge demand, pushing factory production too high then drop it too low. These production shifts move inventory to high or low risking spoilage or stockouts. 3. Changing product intro practices: Combined market research from multiple  channels will be able to forecast new product success better. 4. Changing merchandising practices: ECR combines market research to find  better ways to market goods. Barriers to ECR ● Requires standardization of methods. Recquires agreements about SKU codes  etc. ● Trust from other channel members ● Requires considerable changes to internal operations. Quick Response Logistics (QR) Began in the fashion industry. Focuses on flexible manufacturing with regard to what and how to make. It’s hard to forecast fashion trends, it’s easy to forecast toothpaste sales. Can’t overstock  fashion items that might not sell. Barriers to QR A manufacturer’s quick response might reduce downstream members incentives to sell because they know manufacturer will move quickly to replace inventory with new goods anyway. Supply Chain Strategies Functional Brand: applies to a staple product, which people can buy in many outlets and to  meet their basic needs. Has stable, predictable demand, long life cycles with relatively low  margins.  Innovative Brands: products that are both new and different which gives it higher margins.  Short, unpredictable sales cycle, hard to forecast demand and subject to stock shortages and  stockouts.  ____________________________________________________________________________ Physically Efficient Supply Chain ­ Functional Goods Market­Responsive Supply Chain ­ Innovative Goods Triple A Systems ­ Agile, Adaptable and Aligned


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