Ch 11 - Customers, Supply Chain & SCM

Question 1

What is Supply Chain

Answer 1

All of the activities and information flows needed to transformation of goods from orgin to consumption
Upstream - to supplier
Downstream to customer

Question 2

What are the activities in a supply chain. Typical

Answer 2

Production Planning
Purchasing 
Material management 
distribution 
Customer service 
forecasting

Question 3

Supply chain has can from push model to pull

Answer 3

Driven by online and new models
Gone from product centric to market centric
Push - power is with suppliers, distributors etc
Pull - power is with the customer

Question 4

Upstream supplier relationships. What are the key considerations

Answer 4

1) Overall strategy - e.g sources / No. / Cost / Speed / Quality / outsource or make
2) Antognastic v partnership
3) Service Level Agreements

Question 5

The Use of IT in upstream SCM should be leveraged.

Answer 5

Eprocurement - esourcing / epurchasing / epayment
EDI - linke system with supploers ensure efficient orders
Use of internet - to shop around
Disintermediation - skip supplier go to wholesaler

Question 6

Downstream SCM. VIP to understand customer. What is typicalpurchasing behaviour of industrial markets

Answer 6

Motivation - typical that of or v individual

Individal v group - could be either

Org infleunces - large (likley formal) small (no seperate team, informal etc)

Recipricol buying - condition to buy from each other

Procedure - likely more formal (quotes / tenders / performance specs)

Derived demand - keep an eye out. demand might fall if market is falling etc

Question 7

Downstream SCM. VIP to understand customer. Segment the industrial market by

Answer 7

Geo/ purcahsing charcs/ expectations / company type / size

Question 8

Downstream SCM. VIP to understand customer. Understand behaviour so WHY buy. help ID CSF

Answer 8

Maslows
Cognitive Dissonance - when attiudes and behavour dont align - e.g regret purchase - need to look at
Personality and product choice - typically consistent
Infleunce of other

Question 9

Downstream SCM. VIP to understand customer. Segment by;

Answer 9

Pyschological 
Purchasing characs 
Demographic 
Geographic 
Expectations

Question 10

MArketing - 6 markets model. helps decide who it needs to market to. what are the markets

Answer 10

Customer markets 
Referral markets - e.g bank to insurance 
Supplier market 
Recruitment - to get staff
Infleunce markets - PR market
Internal - e.g AIBMS

Question 11

When looking at overall approach to marketing there are two main types what are they

Answer 11

Relationship v transactional

Relationship is far more focused on retention / customer etc transaction is one off / product focused

Question 12

Branding typicall includes name / logo / colour scheme and associtations. Koter identified 5 brand strategies. what are they

Answer 12

1) Line extensions -existing brand but new variant/ same product category - FORD Focus / KA
2) Brand Ext - existing brand new product category
3) Multibrand - Kellogs
4) New brands
5) Co brands

Question 13

Managing ongoing relationships with customers / downstream. CRM

Answer 13

no comment

Question 14

Managing ongoing relationships with customers / downstream. CRM not always suitable for all customers. what should you look at to determine whether to retain and eliminate / reengineer the customer.

Answer 14

Customer Account Profitability

Question 15

What are the ads and disads of Customer Account Profitability

Answer 15

Ads
Considers non production costs
id valuable customers
- id financial value of marketing efforts

Disads
Might encourage ill judged product changes
difficult getting reliable information
may overlook life vale
may overlook purchasing combination (e.g lending plus AIBMS)

Question 16

CLV is the PV of future cash flows from a customer. What are the inputs needed to calculate

Answer 16

churn rate 
discount rate 
retention costs  
period 
periodic revenue 
profit margin

Question 17

Marketing audits are a type of position audit what does it look at 2) what will it enable 3) What are the stages

Answer 17

Looks at
products and relationship with customer

answers in relation to marketing strategy:
• Where are we now?
• How did we get here?
• Where are we heading?

Enables
deeper understanding of marekt and ways to gain an advantage

Stages
Define market - product / size / growth
Performance differentials - look for segments not doing so well
Profile competitor strategies - know your enemy
Determine strategy planning structure - how SM will be oranised ( staff / goals etc)

Question 18

Customer satisfication and retention. What are SERVQUAL features

Answer 18

1) Tangibles - how you appear
2) Reliability -
3) Responsiveness - willingess to help and speed
4) Assurance - knowledge / courtesy abiloty to inspire trust
5) Empathy - caring and personalised attention

Question 19

Customer satisfication and retention. What are techniques for retention

Answer 19

1) Personalisatoin
2) mass customisation
3) extranets
4) Opt in email
5) Online communities

Question 20

Customer extension involves reselling / cross selling / up selling / reactiviting increases value. What a key tool

Answer 20

Propensity modelling!

Question 21

Effects of IT on the structure of the downstream supply chain.

Answer 21

Disintermediation - skipping / spotify

Reintermediation - add to supply to chain (business adds daft)

Counterintermdiation - rivals set up their own intermediations