Quiz #2 Material
Quiz #2 Material DB 320
Popular in Distribution Management
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This 3 page Class Notes was uploaded by Haley Hummer on Saturday September 12, 2015. The Class Notes belongs to DB 320 at University of Alabama at Birmingham taught by Dr. Michelle Burn in Fall 2015. Since its upload, it has received 124 views. For similar materials see Distribution Management in Industrial Engineering at University of Alabama at Birmingham.
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Date Created: 09/12/15
Quiz 2 Material DB320 Module 3 Industrial Distributors Deliver Value Channel Relationships and Supply Chains 0 Why have channel intermediaries 0 Couldn t the supplier do directly everything that channel members could I Economic theory of division of labor I Reduction in transaction costs and complexity I Different target segments require different channel structures and level of services 0 Marketing Channels Create Economic Utility 0 O O O M Usable quantity or mode of the product most preferred by the customer m availability of the product when the customer needs it w availability of the product Where a customer needs it Possession how the customer obtains ownership or right to use of the product or service 0 Industrial Distributors serve the End Users 0 Provide fast delivery I Maintain a local inventory I Provide regular J IT deliveries I Customer avoids large resource commitment to incoming inventory Provide segment based product assortment I One stop shopping to small and medium sized industrial customers Provide local credit I Trade credit for established customers Provide product information I Advice on the applications and use Assist in buying decisions I Assist in the selection Anticipate needs I Close relationship develops I Anticipates future needs 0 Industrial distributors serve industrial suppliers 0 Buy and hold inventory I Local inventory fro MFRs smaller customers I MFR relieved of financial and logistical responsibilities 0 Combine manufacturers outputs I Based on the needs of the customer segment I Important to MFRs with narrow product lines 0 Share credit risk I Risks credit to the distributor are less than risks of extending credit to many small customers 0 Share selling risk I Both parties have a stake in the success of the product 0 Forecast market needs I Distributors are much closer to the markets they serve I Provide manufacturers with realistic forecasts 0 Provide market information I Distributors have a better understanding of unmet customer needs Value Networks 0 Include I Supply chain feeding into the supplier I Partners providing product and service components of the offering I Distribution channel reaching the final buyer 0 Combine to form final offering for final customer I All have a role in contributing value for the final customer Supply Chain Management 0 Creation of value for customers though effective and efficient ow of materials components finished goods and services 0 Extend from raw materials to end use customers Business Logistics 0 The management of movement sorting and storage of goods an important tactical function 0 Logistics as a competitive advantage I As technology and the product advantages become more eeting efficient supply chains have become a competitive advantage I Best designs match the way the customer buys in that the market channel is differentially invisible to the customer Channel Design and Reduce the Discrepancy of Assortment 0 Channels convert manufacturers product lines to product assortments desired by particular market segments 0 Creates a clear need for Industrial Distributors When to use Distributors 0 Product requires local stock 0 Product line is small unable to support direct sales 0 Product is somewhat generic O O O O O O O O 0 Product has low unit value Product is near end of PLC Customers are widely dispersed Local repackaging sizing or fabrication is required Market has many smallvolume buyers Product requires extensive sales effort directed at buying professionals Startup venture or established company is entering a new market Competition uses distributors Customers prefer distributors 0 When to not use a Distributors O O O O O 0 Product is highly customized Product is new or innovative Product is technically sophisticated Significant missionary selling is required Manufacturer requires control over product application Large buyers are geographically concentrated 0 Selecting and Caring for Distributors O O O O 0 Determine right distributor for your marketing plan Ask customers who they recommend Train and support them well at both your facilities and theirs Make calls on them Make calls with them 0 Bases of Power in Marketing Channels 0 0 Soft Bases of Power I Expertise I Information I Identification Hard Bases of Power I Reward I Coercion I Legitimate 0 Web Opportunities for B2B Marketers O O O 0 Better and faster channel ows market data more readily available Faster communications provide rapid ordering and order tracking Reduced transaction costs through online processing and tracking Product information available at the customers convenience
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