Chapter 15 and 16 Lecture Notes
Chapter 15 and 16 Lecture Notes 86498 - MKT 3010 - 006
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86498 - MKT 3010 - 006
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This 6 page Class Notes was uploaded by Alexis Cone on Thursday October 29, 2015. The Class Notes belongs to 86498 - MKT 3010 - 006 at Clemson University taught by Amanda Cooper Fine in Spring 2015. Since its upload, it has received 31 views. For similar materials see Principles of Marketing in Marketing at Clemson University.
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Date Created: 10/29/15
Chapter 15 Continued 10272015 Supply Chain Components 0 Order processing and ful llment 0 Electronic data interchange EDI When computers share information with one another 0 Reduce lead times when you realize you need to place the order and when you actually get the order Reduce inventory levels Free up cash 0 Ex 60 minutes episode on how robots are more ef cient than humans 0 Inventory control 0 Low but adequate o Justintime Systems Reduced lead times Increase product availability Lower inventory investments at distribution centers Retail calls this a quick response system 0 Vendormanaged inventory Manufacturer is responsible for maintaining the retailers inventory Warehousing and materials handling 0 Safety stock Weakness whenever you have excess stock there are increased cost increased opportunity for theft increased taxes ect 0 RFID tags Radio frequency identi cation tags Put into a variety of products as they go through the supply chain to provide information about the product as it moves though the supply chain Ex UPS commercial 0 Transportation O O 0 Getting your product from one part of the supply chain to another Average is 510 of the price you pay for your goods is from transportation What mode of transportation makes the most sense keeps the cost down keeps the product safe ect Planners 0 Customer relationship management 0 CRM software systems help to manage this 0 Prioritize marketing focus segmentation 0 Customer service management Can ensure a strong relationship Uni ed response system within the supply chain to deal with customer complaints and comments Touch points D About trying to create a relationship with customers 0 Returns management Manage volume in a cost effective manner 40 of what is purchased is returned in ecommerce retail Additional touch points Weakness recognition Ex 60 Minutes on Amazon El Chapter 16 10272015 What is Retailing 0 End of the supply chain 0 Where marketing meets the consumer Retailers are challenged to add value to products sold Choosing Retail Partners Channel structure 0 How integrated is your supply chain 0 What are your goals and what are the goals of your partners Customer expectations 0 Who is the target market and where do they shop Determines which retailer to go to 0 Channel member characteristics 0 How much power does each entity have in the supply chain 0 Distribution intensity 0 How many retail partners 0 Intensive Get your product to as many retailers as possible variety of stores Ex Kraft 0 Exclusive Limiting your retail partners geographic regions price points ect Ex Estee Lauder Using the Four Ps to Create Value in Retailing Product assortment and services mix 0 Price 0 Match price to target market and to positioning strategy Place 0 Location is a big part to success Promotion 0 O O 0 Sales staff within the store Promotional efforts to get people in the store What marketing techniques do you utilize to get people to purchase your product Store experience is also important Store Experience Carefully orchestrated O 0 000 O Entranceattracts buyers to come through their door Layoutput newest or most expensive merchandise on the right because that is the side people go to rst instinctively agship items milk are in the back of the store because the more items you pass the more likely you are to buy something Lighting helps to create a mood Color different colors exude different feelings Sound Smell can evoke emotions and memories 10 Disruptions in Retail Omnichannel retail 0 0 Consumer demand is all about getting products anytime and anywhere Blurring lines between physical and digital Convergence of platforms having platforms work together for everyone s bene t especially the consumers Broader selection Personalization of the retail experience 0 Omnichannel shopper vs single channel shopper Omnichannel shopper tends to spend 3 to 4 more times than single channel shoppers means more money Increased loyalty and satisfaction Mobile communication 0 Support via apps and instore reception 0 Affects 75 of purchases 0 Big data analytics o quotThe new oilquot 0 STP Understanding your customers in much better way deeper level than just looking at demographics o Untrained employee base A lot of potential to be tapped by trained employees 0 Share of wallet ldea that you have a budget so stores want to know how much of your budget you are spending at their store Know competitors information too 0 Vertical integration 0 Differentiated product 0 Exclusive brands owned by retailer 0 Impact of Zara and HampM Really utilize their supply chains to produce great value and very quickly 0 Impact on the supply chain 0 Price transparency o Coupled with social media 0 Consumer empowerment o Retailers have to work on getting smaller margins Cyber security 0 Con dence issue for consumers they aren t trusting retailers to have their best interest at heart 0 Legislation is going to start to impact cyber security 0 Strategy is to make yourself safer than your competition 0 Changing demographics 0 Aging baby boomers Healthy miennias that have a lot of needs that have changed retail Increase in minorities population 0 Implications Segmentation strategies Product needs 0 Cross border commerce 0 Global pricing 0 Tourism and product perception Putting pressure on retailers to have a global marketing strategy 0 Mobile payments 0 Still in infancy stage but a lot of growth is projected to happen 0 Who owns the data transactions ect 0 Security issue Consumers have to feel comfortable with these transaction methods Talent requirements 0 CEO needs to be different 0 New skills 0 People need to be cross functional 0 O