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79 Cards in this Set
- Front
- Back
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Networks in Supply Chain
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Physical Supply Network, Physical Distribution network
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supply chain management
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seamless management of all activities through which raw materials are transformed into products and made available to final consumers
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supply chain management requires
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channel management, logistics management
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marketing channels
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a set of interdependent organizations involved in transfer of ownership as finished products move from producer (manufacturer) to consumer
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Direct channels
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Manufacturer directly to end user. Best for complex, expensive, customized items, B2B products, manufacturer wants control
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indirect channel
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manufacturer to distributor to retailer to end user or manufacturer - retailer - end user. Best used for low cost, standard items. Most consumer products
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channel intermediaries
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retailer, merchant wholesaler, agent and/or broker
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retailer
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sells mainly to final customers
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merchant wholesaler
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buys and takes title to goods from manufacturer, stores, ships, and sells to other businesses
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agent and/or broker
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facilitates sale between mfg and others, does not take title
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Three reasons to use intermediaries
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1. intermediaries develop skills in selling
2. intermediaries overcome discrepancies 3. intermediaries provide contact efficiency |
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intermediaries develop skills in selling
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knowledge of customer, efficiency in handling large volumes, good at merchandizing
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intermediaries overcome discrepancies
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discrepancy of quantity, discrepancy of assortment, temporal discrepancy, spatial discrepancy
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discrepancy of quantity
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manufacturers produce in large volume, consumers buy in small volume
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discrepancy of assortment
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manufacture produces many of one item, consumer buys one of many items
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temporal discrepancy
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difference in when something is produced and when it is purchased
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spatial discrepancy
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difference between where something is produced and where it is purchased
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contact efficiency
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less transactions needed with an intermediary (ex, grocery shopping)
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marketing functions performed by channel members
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transactional, logistical, facilitating
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transactional
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promotion, negotiation, risk taking
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logistical
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distribution, storing, sorting
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facilitating
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researching, financing
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importance of channel members
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functions must always be performed. if no intermediaries, then all must be performed by the manufacturer or consumer. for standard, low cost items, intermediaries reduce the cost to final consumer
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logistics
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management of physical flow of raw materials, components, and products across the supply chain.
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objective of logistics
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to give the customer (channel member or consumer) the needed level of customer service at the lowest cost.
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logistics measured in terms of
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order cycle time, product availability, order accuracy, flexibility, information
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logistical components of the supply chain
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sourcing and procurement, production scheduling, order processing, inventory control, warehouse & materials housing, transportation, logistics information system
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sourcing and procurement
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objective: obtain needed supplies in right quantity at lowest cost, develop long term relationships with suppliers
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production scheduling
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determining method and timing of the manufacturing mix of products. build to stock vs build to order
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order processing
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a system for easily receiving orders the accurately and quickly filling them. EDI - computer exchange of ordering information
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inventory control
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maintaining the correct amount of inventory. goal is to meet product availability standards while keeping costs low. MRP, DRP systems
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materials handling functions
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moving products within a facility: receiving, sorting, storing, finding, and getting ready for shipment
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transportation
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railroads (most popular), motor carriers, pipelines, water, airways (most expensive)
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trends in supply chain management
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advanced computer technology (RFID) outsourcing of logistics functions (3PLs) electronic distribution
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relationship of logistics to marketing mix
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product characteristics can significantly impact logistics costs, logistics must be aware of upcoming promotions, effective logistics can reduce prices and/or increase revenue
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what is a product
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everything a person receives in an exchange: physical good, service, idea.
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product issues
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branding or products, packaging of products, types of products, number or products, how are new products developed and managed?
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brand
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identification of the seller's product
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brand name
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the spoken part of a brand
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brand mark
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the part of a brand that cannot be spoken (nike swooosh)
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global brand
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at least 20% of the product is sold outside the home country
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brand love
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loyalty beyond reason, lovemarks
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brand equity
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definition: value of a company/brand name
true meaning: what extra value does the brand name bring? |
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branding strategies
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brand vs no brand (generic), manufacturer (by producer), private (by retailer), family (all products have same brand) vs individual (each product has it's own brand), co-branding - two individual brands, from different companies, are shown on one package
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developing brand names
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often outsourced to branding companies
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characteristics of good brand names
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easy to say, memorable, suggest products use, can be easily translated, evokes correct emotion
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functions/benefits of packaging
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functional benefits: contain and protect; perceptual benefits: promote, create image; value benefit: facilitate, use, and add value beyond contents
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types of consumer products
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classified by search process. type is not inherent to product category. convenience, shopping, speciality, unsought
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number of products
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most firms offer a wide number of products
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product mix
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all items a firm offers
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product line
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group of related items
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depth of product line
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how many items in the product line
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width of product mix
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how many different product lines
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new product development
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firms continually develop new products: new to world, new modification, new to firm
use an established new product development process manage products throughout life cycle |
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new product development process
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1. new product strategy
2. idea generation 3. idea screening 4. business analysis 5. development 6. test marketing 7. commercialization |
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new product strategy
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a goal or strategy on how new products will fit into overall corporate success.
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idea generation
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sources of new-product ideas: customers, employees, distributors, competitors, vendors, r&d, consultants
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idea screening
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narrowing down and eliminating bad ideas. includes concept testing
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business analysis
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will the numbers work? cost, demand, sales, profitibility
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development
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creating of prototype; packaging, branding, labeling; final government approvals if needed; detailed marketing strategy; significant cost commitment
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test marketing
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the limited introduction to determine consumer reactions: sometimes done with a scanner panel, sometimes done in a lab setting
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commercialization
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production, inventory buildup, distribution, advertising (consumer and trade)
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diffusion
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the process by which the adoption of a new product spreads. diffusion is faster when complexity is lower, compatibility is higher, relative advantage is higher, observability is higher, trialability is higher.
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product life cycle
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introductory stage, growth stage, maturity stage, decline stage
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growth characteristics
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rapidly rising sales, profits increase and often peak, some repeat buyers, competition begins to enter, early adopters buy
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growth strategies
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must create specific (secondary) demand, lower prices to gain market penetration, expand distribution and advertising
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maturity characteristics
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sales reach a high level, but growth slows, many competitors (price), market saturation, profits are high and then begin to decline due to price pressures, middle majority buys
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mature strategies
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look for new product innovations and modifications, heavily promote brand with reminder advertising, offer incentives
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decline characteristics
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sales drop off, profits stop, laggards buy
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decline strategies
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reduce promotion, consolidate inventory to a few locations, consider modifying or dropping product
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extending time in the PLC
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increase frequency of use, increase number of users, find new uses
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marketing research
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the process of planning, collecting, and analyzing data relevant to a marketing decison
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marketing research process
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1. identify problem
2. plan design 3. specify sampling procedure 4. collect data 5. analyze data 6. prepare/present report 7. follow up |
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identify the problem
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identify the key marketing decision, usually TM or 4P's, translate into research problem
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plan research design
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decide on type of data and method of collecting primary data
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issues with surveys
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interviewer bias, consumer unwillingness to participate
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sampling questions
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who is the population? what will be used for sampling frame? what type of sample will be used?
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types of sample
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probability sample, nonprobability sample
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collect and analyze the data
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often outsource collection, select appropriate statistical methods
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