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http:// http:// www.thesmartmarketing.co.cc www.thesmartmarketing.co.cc Marketing Channels & Marketing Channels & Supply Chain Supply Chain Management Management Universitas Atmajaya Universitas Atmajaya By By Stefanus Manuntun Sitinjak MM Stefanus Manuntun Sitinjak MM

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http://www.thesmartmarketing.co.cchttp://www.thesmartmarketing.co.cc

Marketing Channels & Marketing Channels & Supply Chain ManagementSupply Chain Management

Universitas AtmajayaUniversitas AtmajayaByBy

Stefanus Manuntun Sitinjak MMStefanus Manuntun Sitinjak MM

http://www.thesmartmarketing.co.cchttp://www.thesmartmarketing.co.cc

OutlineOutline

• Supply Chains & Value Delivery NetworkSupply Chains & Value Delivery Network

• The Nature & Importance of Marketing ChannelsThe Nature & Importance of Marketing Channels

• Channel Behavior & OrganizationChannel Behavior & Organization

• Channel Design DecisionsChannel Design Decisions

• Channel Management DecisionsChannel Management Decisions

• Marketing Logistics & Supply Chain ManagementMarketing Logistics & Supply Chain Management

http://www.thesmartmarketing.co.cchttp://www.thesmartmarketing.co.cc

Supply Chain & Supply Chain & Value Delivery Value Delivery NetworkNetwork

The The CompanCompan

yy

CustomersCustomers

SuppliersSuppliersDistribution Distribution

ChannelsChannels

Supply Chain

Value Delivery Network

Wider View of SCM

http://www.thesmartmarketing.co.cchttp://www.thesmartmarketing.co.cc

The Nature & Importance of The Nature & Importance of Marketing ChannelsMarketing Channels

• Few AssortmentFew Assortment• Large QuantityLarge Quantity

• Few QtyFew Qty• Broad AssortmentBroad Assortment

MatchMatch

SUPPLYDEMAND

http://www.thesmartmarketing.co.cchttp://www.thesmartmarketing.co.cc

Channel LevelsChannel Levels

ProducerProducer ProducerProducer ProducerProducer

ConsumerConsumer ConsumerConsumer ConsumerConsumer

RetailerRetailer RetailerRetailer

WholesalerWholesaler

http://www.thesmartmarketing.co.cchttp://www.thesmartmarketing.co.cc

Channel Behavior & Channel Behavior & OrganizationOrganization

• Channel Conflict (Traditional Channel)Channel Conflict (Traditional Channel)– Same levelSame level– Different levelDifferent level

• Vertical Marketing SystemVertical Marketing System– Corporate VMSCorporate VMS– Contractual VMSContractual VMS– Administer VMSAdminister VMS

• Horizontal Marketing SystemHorizontal Marketing System

• Multi Channel Distribution System:Multi Channel Distribution System:– Catalog, telephone, internet, traditionalCatalog, telephone, internet, traditional

Online Store by Producer

Toshiba

Most AutomotiveCarefour

Wall Mart & Mc’D

http://www.thesmartmarketing.co.cchttp://www.thesmartmarketing.co.cc

Channel Design DecisionChannel Design Decision

Setting Channel Setting Channel ObjectivesObjectives

Identifying Major Identifying Major AlternativesAlternatives

Evaluating the Major Evaluating the Major AlternativesAlternatives

Analyzing Analyzing Consumer NeedsConsumer Needs

Targeted Market Targeted Market SegmentsSegments

Balance Cost & Balance Cost & Customer PriceCustomer Price

Types, Numbers & Types, Numbers & ResponsibilitiesResponsibilities

Economic, Control Economic, Control Issues, Adaptive CriteriaIssues, Adaptive Criteria

http://www.thesmartmarketing.co.cchttp://www.thesmartmarketing.co.cc

Channel Management Channel Management DecisionsDecisions

• Selecting Channel MembersSelecting Channel Members– CapabilityCapability– PerformancePerformance

• Managing & Motivating Channel Managing & Motivating Channel MembersMembers– Partnership relationship managementPartnership relationship management

• Evaluating Channel MembersEvaluating Channel Members– Performance Performance – Recognition & rewardsRecognition & rewards

Hi-Tech Products

GE

http://www.thesmartmarketing.co.cchttp://www.thesmartmarketing.co.cc

Marketing Logistics & SCMMarketing Logistics & SCM

• Marketing Logistics = Physical DistributionMarketing Logistics = Physical Distribution

• Goal : Maximize service at least costGoal : Maximize service at least cost

• Major Functions:Major Functions:– WarehousingWarehousing

– Inventory ManagementInventory Management

– TransportationTransportation

– Logistic Information Management:Logistic Information Management:

• OrdersOrders

• BillingBilling

• Inventory levelInventory level

• Customer DataCustomer Data