Chapter 8 Distribution channels and logistics management
The learning objectives The nature of distribution channels Channel behavior and organization Channel design decisions Channel management decision Physical distribution and logistics management
1.The nature of distribution channels What is distribution? Why are marketing intermediaries used? The function of distribution channel Channel level
What is distribution channel? A set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user.
Why are marketing intermediaries used?
Distribution channel function Information Promotion Contact Matching negotiation
Channel level
Channel behavior and organization Channel conflict Vertical marketing system Horizontal marketing system Hybrid marketing systems
Channel conflict Horizontal conflict Vertical conflict
Vertical marketing systems Conventional distribution VMS Corporate VMS Contractual VMS Administered VMS Franchise organization
Horizontal marketing system
Hybrid marketing channel
Retailing and wholesaling P475/ 498 WHAT ’ S the difference between retailing and wholesaling?between agents and brokers?
2.channel design decision Analyzing consumer service needs Setting channel objectives and constraints Identifying major alternatives Evaluating the major alternatives
Identifying major alternative Types of intermediaries Number of marketing intermediaries Responsibilities of channel members
Number of marketing intermediaries Intensive distribution Exclusive distribution Selective distribution
3.Channel management Decision Selecting channel members Motivating channel members Evaluating channel members
4.physical distribution and logistics management Physical distribution(marketing logistics) major logistics function Integrated logistics management Third-party logistics
Major logistics function Order processing Warehousing Inventory transportation
Integrated logistics management Cross-functional teamwork inside the company Building channel partnerships
Third-party logistics An independent logistics provider that performs any or all of the functions required to get their clients ’ product to market.
Case discussion 1.what is strategy of Ito-yokado? How do you think the ability of Ito? 2.why does Ito decide to purchase Southland? 3.how do you think the tendency of convenience store in the states? 4. how do you think the tendency of convenience store in Japan? 5. why are 7-11s successful in Japan? 6.how the oil shop influence the convenience stores? 7.how do you think the Southland? 8.what is your suggestion to Ito in acquisition of Southland? 9.how do you think the buyout of Southland? 10.how do you think the tendency of convenience store chains in worldwide?