HELLO!

I am Tran Tri Dung

Founder & CEO Công ty Cổ phần WMS
Giảng viên Chuyên ngành Marketing

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 16.
Marketing Channels:
Delivering Customer
Value

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 Contents

▸ Supply Chains and the Value Delivery Network

▸ The Nature and Importance of Marketing Channels
▸ Channel Behavior and Organization
▸ Channel Design Decisions
▸ Channel Management Decisions
▸ Marketing Logistics and Supply Chain Management

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 Supply Chain Partners
Upstream partners
include raw material
suppliers, components,
parts, information,
finances, and expertise to
create a product or service
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Downstream partners
include the marketing
channels or distribution
channels that look toward
the customer
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 Supply Chains and the
Value Delivery Network

Supply Chain Demand Chain

Value Delivery
Value Chain
Network

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 Supply Chain, Demand
Chain and Value Chain

Supply Chain Demand Chain Value Chain

“make and sell” view “sense and respond” refers to the process in
includes the firm’s raw view suggests that which businesses
materials, productive planning starts with receive raw materials,
inputs, and factory the needs of the target add value to them
capacity customer, and the firm through production,
responds to these manufacturing, and
needs by organizing a other processes to
chain of resources and create a finished
activities with the goal product, and then sell
of creating customer the finished product to
value consumers

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 Toyota operates according to the principle of ‘The Customer Always Comes First’ as declared in “The Toyoda
Precepts” in 1935. This principle is reflected in all business processes and procedures of the company. Figure 3
below illustrates a schematic diagram of dealing and obtaining the customer feedback in the case of Toyota Japan.

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 Supply Chain Demand Chain Value Chain

The Role in Demand Demand

Demand creation
Demand Planning fulfillment performance

Key Strategy Channel strategy Product strategy Financial strategy

New product Cost accounting

development Pricing Revenue
Procurement
Market research management
Primary Activities Manufacturing
Sales and Capital
Logistics Payment
promotion investment Value-
Forecasting added services

Supply chain
Key Stakeholders End customers Shareholders
partners

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 Value Chain vs Value Network

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 Value Delivery Network

▸ Provide the customers

with a better value
▸ Relies upon the
relationship quality
▸ All the participants are
trying hard to offer its
customers improved
value

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 The Nature and Importance of
Marketing Channels

▸ Intermediaries offer producers greater efficiency

in making goods available to target markets.
Through their contacts, experience, specialization,
and scale of operations, intermediaries usually
offer the firm more than it can achieve on its own.

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 How Channel Members Add Value

▸ From an economic view, intermediaries

transform the assortment of products into
assortments wanted by consumers
▸ Channel members add value by bridging the
major time, place, and possession gaps that
separate goods and services from those who
would use them

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 How Channel Members Add Value

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 How Channel Members Add Value

Information Promotion Contact

Physical
Matching Negotiation
distribution

Financing Risk Taking

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 Number of Channel Members

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 Channel Behavior and
Organization

 Marketing channel consists of firms that have

partnered for their common good with each
member playing a specialized role
 Channel conflict refers to disagreement over
goals, roles, and rewards by channel members
 Horizontal conflict
 Vertical conflict

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 Vertical Marketing Systems

Conventional Vertical marketing

distribution systems systems (VMSs)
consist of one or more provide channel
independent leadership and
producers, consist of producers,
wholesalers, and wholesalers, and
retailers. retailers acting as a
unified system

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 Vertical Marketing Systems

Corporate Contractual
VMS VMS

Administered
VMS

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 Horizontal Marketing
Systems

Horizontal marketing
systems are when two
or more companies at
one level join together
to follow a new
marketing
opportunity.

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 Multichannel Distribution
Systems

▸ Multichannel Distribution systems (Hybrid marketing

channels) are when a single firm sets up two or more
marketing channels to reach one or more customer segments

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 Changing Channel
Organization

Disintermediation
occurs when product or
service producers cut
out intermediaries and
go directly to final
buyers, or when radically
new types of channel
intermediaries displace
traditional ones

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 Channel Design Decisions

Analyzing Setting
consumer channel
needs objectives

Identifying
major
Evaluation
channel
alternatives

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 Analyzing consumer needs

▸ Distance to travel
▸ In person versus online
▸ Breadth of assortment
▸ Customer service

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 Setting Channel Objectives

▸ Targeted levels of customer service

▸ What segments to serve
▸ Best channels to use
▸ Minimizing the cost of meeting customer
service requirements

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 Identifying Major Alternatives

▸ Types of intermediaries
▸ Number of intermediaries
▸ Responsibilities of each channel member
Intensive distribution
• Candy and toothpaste

Exclusive distribution
• Luxury automobiles and prestige
clothing
Selective distribution
• Television and home appliance
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 Evaluating the Major
Alternatives

Each alternative should be evaluated against:

▸ Economic criteria
▸ Control
▸ Adaptive criteria

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 Channel Management
Decisions

Selecting Managing Motivating Evaluating

channel channel channel channel
members members members members

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 Marketing Logistics and
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
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 Marketing Logistics and
Supply Chain Management

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 Major Logistics Functions

Inventory
Warehousing
management

Logistics
Transportation information
management

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 Warehousing Decisions

▸ How many
▸ What types
▸ Location (storage
warehouse or
distribution centers)

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 Inventory Management

 Just-in-time systems
 RFID
 Knowing exact product location
 Smart shelves
 Placing orders automatically

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 Transportation

▸ Transportation affects the pricing of products,

delivery performance, and condition of the goods
when they arrive

Truck Rail Water

Pipeline Air Internet

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 Logistics Information
Management

Logistics information management is the management

of the flow of information, including customer orders,
billing, shipment, inventory levels, and customer data
▸ EDI (electronic data interchange)
▸ VMI (vendor-managed inventory)
▸ Building Logistics Partnerships

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 THANKS!
Any questions?
You can find me at https://trantridung.vn/

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