Quiz 5 Flashcards
A. Supply Chain Management/Marketing Channel Management
- The management of the flow of goods, flow of info, and the management of relationships
The Who in SCM
- Raw material suppliers, manufacturers, wholesalers, retailers, distribution centers, transportation companies, and consumers
The how in SCM
- Technology is the key. Especially information technology
The why in SCM
- To deliver value to the consumers
B. Members in a Supply Chain
a. Raw Material & Component Suppliers
b. Manufacturers
c. Wholesalers = buy from manufacturers and sell to retailers
d. Distribution Centers
i. Deliver to stores
e. Fulfillment Centers
i. Deliver to customers
f. Retailers
Sell to end consumers
g. Transportation Companies
Move goods by members
What is vertical integration in a SCM
- Companies who do everything yourself
C. Marketing Channels
Direct
Indirect
Direct marketing channel
Manufacturer –> customer
Indirect marketing channel
i. Wholesaler or Retailer?
- Wholesaler – Sells to retailers and customers
- Retailer – sells to customers
Why would companies ship directly to a store
i. If the material/goods are perishable
ii. If the merchandise is a fad and the retailer wants it fast
iii. If there are a lot of the retail stores in a concentrated area
Why would companies ship to a distribution center
i. Allows the store to carry less inventory
ii. The retail space is much more expensive than a DC space
iii. Much less errors in data gathered from a DC
How do suppliers capture information
i. Dependent on having a tracking device on each piece of inventory
b. Who does the store share with?
i. The rest of the supply chain
c. Who does the buyer share with?
i. Vendors, the suppliers, etc
d. What is vendor managed inventory?
i. When the vendors automatically ship out more inventory when the stores inventory gets to a certain level
Promotion
Communicates value to the target market
Influences the way that people think, feel, and act
Communicates the value proposition
Sub-goals of promotion
Inform, persuade, and remind
Inform (promotion)
Introduction stage. Informs about product category benefits
Persuade (promotion)
Growth stage. Persuades customers to try/buy the product
Remind (promotion)
Maturity stage. Reminds consumers about the product
Promotional mix
Set of tools that you use to communicate
Public relations
The organizational function that manages the firm’s communications to achieve a variety of objectives, including building a positive image and educating stakeholders
Sales promotion
Special incentives or excitement building programs that encourage customers to try, buy, or buy more.
Ex. Contests, sweepstakes, competitions, samples, etc.
Also one of the easiest to measure
What is a metric
A measure of performance
Personal selling
Two-way flow of communication between a buyer and a seller designed to influence the buyer’s purchase decision
Personal interactions for the point of making a sale
Personal selling adv/disadv
Most expensive, most effective, very easy to measure, and adds the most value to the customer
Advertising
A paid form of communication delivered through mass-media from an identifiable source.
Interpersonal, one-way communication in which the company is identified and pays for the communication (ad)
Advertising adv/disadv
A very high reach (% of the TM that sees it)
Cost/contact is very low –> TC is high
Very difficult to measure because of the lag effect
Direct marketing
Marketing that communicates directly with target customers to generate a response or transaction
Includes email and m-commerce
Online marketing
Use of websites, blogs, and social media to market
Integrated marketing communications (IMC)
The combination of all communication methods to provide a clear, consistent, and impactful message
Push vs pull promotion
Push - Manf. talks to a retailer
Pull - Manf. talks to the customer (billboards)
AIDA
Awareness, interests, desires, and actions
Institutional advertising
Used to promote the organization as a whole and is designed to establish, change, or maintain the organizations image
Sub-categories of institutional advertising
Advocacy - supports a cause or issue, sometimes a controversial issue; usually sponsored by for-profit orgs
Public service - Focus on public welfare for the betterment of society; generally sponsored by a non-profit org, religious groups, trade associations, etc.
Product advertising
Informs, persuades, and reminds about a specific product/service
