1. Marketing Management 2nd Edition
Michael R. Czinkota and Masaaki Kotabe
Chapter 11:
Distribution and Supply Chain Management

2. Chapter Outline Distribution channel Channel compensation
Channel membership
Channel integration
Retailing
Wholesaling
Purchasing
The supply chain
Supply chain management
Customer service

3. Distribution Channel
Member organizations through which a product passes to reach the end user.
Intermediaries:
Zero-level:
Manufacturer
Manufacturer
Wholesaler
Intermediaries
Retailer
Consumer
Consumer

4. Channel Compensation Trade discounts Quantity discounts
Promotional discounts
Cash discounts

5. Channel Membership Intensive distribution Selective distribution
Exclusive
distribution

6. Channel Integration Forward integration: member acquires a downstream
Manufacturer
Forward
integration:
member
acquires a
downstream
Backward
integration:
member
acquires an
upstream
Wholesaler
Retailer
Franchise:
member licenses
property to
independent
business
Consumer

7. Retailing: Type of Product
Supermarkets
Dept. stores
Discount outlets

8. Retailing: Type of Service
Self-service
Self-selection
Personal service

9. Retailing: Location Central shopping area Sites outside cities
Catalogs
Three most important words in retailing:
Location … location … location!

10. Wholesaling Different types of wholesalers: Cash-and-carry wholesalers
Full service wholesalers
Service merchandisers, or “rack jobbers”

11. Purchasing Buy from Single supplier Buy from Multiple suppliers

12. The Supply Chain Suppliers Corporation Customers Domestic/ import
sourcing
Throughflow
Domestic/
export
distribution

13. Supply Chain Management
Five key decisions:
Production
Transport
Facility
Inventory
Communications

14. Customer Service Service levels Customers complaints
Customer satisfaction
Organizing for customer service