KRD7

Knowledge Review & Discussion

Marketing Mix
– Place

Prepared by Kim Du
Marketing Mix – 4Ps
Reviewing Objectives & Key terms

1. The Nature and Importance of Marketing Channels

2. Channel Behavior and Organization
• Vertical Marketing Systems
• Horizontal Marketing Systems
• Multichannel Distribution Systems
3. Channel Design Decisions
4. Marketing Logistics and Supply Chain Management
ACTIVITY 1: NETFLIX CASE STUDY

Read the Case – Netflix’s Channel Innovation

1. Describe the key elements behind Netflix’s innovative channel distribution strategy
2. Despite its recent successes, what threats does Netflix face in the future?
3. How does the Netflix story relate to the concepts presented in Chapter 12 on distribution?

Case – Netflix’s Channel Innovation

https://drive.google.com/file/d/13qrWJxvmRYjhV6c6yf6JkPRlPBBNWeJC/view?usp=sharing
1. The Nature and Importance of Marketing Channels
How Channel Members Add Value
• Intermediaries offer producers greater efficiency
in making goods available to target markets.
1. The Nature and Importance of Marketing Channels
How do Channel Members Add Value?

Information Promotion Contact

Matching Negotiation

Physical
Financing Risk taking
distribution
1. The Nature and Importance of Marketing Channels
Number of Channel Levels
2. Channel Behavior and Organization

• Corporate VMS
• Contractual VMS
• Administered VMS
2. Channel Behavior and Organization
Horizontal Marketing system is a
form of distribution channel
wherein two or more companies
at the same level unrelated to
each other come together to
gain the economies of scale.
2. Channel Behavior and Organization
Multichannel Distribution system
A distribution system in which a single firm set up 2 or more marketing channels to
reach more customers.

Figure 12.4 Multichannel Distribution System

2. Channel Behavior and Organization
3. Channel Design Decisions

• Find out what target consumers want from the channel

Analyze Consumer • Identify market segments
Needs • Determine the best channels to use
• Minimize the cost of meeting customer service requirements

Setting Channel Identify & Evaluating

Objectives Major Alternatives

• Determine targeted levels of

customer service
• Balance consumer needs against
costs and customer price
preferences
3. Channel Design Decisions
Identify & Evaluating Major Alternatives
Number of Marketing Intermediaries

Stocking the products in as many outlets as possible

Intensive distribution Ex: Toothpaste, Shampoo,…

Giving a limited numbers of dealers the exclusive rights to distributes the

Exclusive distribution company products in the territories
Ex: Luxury brands (automobiles ,…) and prestige clothing

The use of more than 1 but fewer than all of the intermediates
Selective distribution who are willing to carry the company’s products
Ex: Television, furniture and home appliance brands
4. Marketing Logistics & Supply Chain Management

Marketing?
Logistics?
Marketing Logistics?
4. Marketing Logistics & Supply Chain Management
Marketing logistics (physical distribution) involves planning, implementing, and controlling
the physical flow of goods, services, and related information from points of origin to points of
consumption to meet consumer requirements at a profit.

Figure 12.5 Supply Chain Management

4. Marketing Logistics & Supply Chain Management
What is the importance of Logistics?

• Competitive advantage by giving customers better service at lower prices.

• Cost savings to the company and its customers.
• Product variety requires improved logistics.
• Information technology has
created opportunities for distribution efficiency.
4. Marketing Logistics & Supply Chain Management

Major Logistics Functions

Inventory
Warehousing
management

Logistics
Transportation information
management
 What makes the success?
How to have profit?
E-Wallet

(Vietnam Investment Review, 2020)

FOR THE NEXT CLASS

• Review Chapter 12
• Read Chapter 13