1. Marketing Channels Delivering Customer Value Chris Beltran, Messaline Clement, Mireya Gama, Cody Prue

2. Agenda  Chapter 12 Key Ideas  Video  In-N- Out Comprehensive Model  Discussion Questions

3. The Value Delivery Network

4. Direct Marketing Channel vs. Conventional Marketing Channel Consumer Retailer Wholesaler Producer Consumer Producer Direct Conventional

5. Vertical Marketing System  In-N-Out: Corporate VMS  Ford: Contractual VMS  Walmart, Home Depot: Administered VMS Horizontal Marketing System  Walmart & McDonalds  Taco Bell & Pizza Hut

6. Multichannel Distribution

7. Channel Design Decision

8. Supply Chain Management Managing upstream and downstream value- added flows of materials, final goods, and final consumer Supply Chain Management

9. Channel Management Decision  Selecting Channel Members  Managing and motivating channel members  Evaluating channel members

10. Public Policy and Distribution Decisions  Exclusive territorial agreements  Producer or seller limit territory  Exclusive dealing  Seller requires that the sellers not handle competitor’s products  Exclusive distribution  Seller allows only certain outlets to carry its products  Tying agreements  Dealer must take most or all of the line

11. Major Logistics Functions Warehousing Inventory Management Transportation Logistics Information Management  Marketing logistics:  Planning, implementing, and controlling the physical flow of goods and services from points of origin to points of consumption  Transportation  Trucks- 40%  Railroads- 40%  Water carriers- Less than 5%  Air carriers & Pipelines- Less than 1%

12. Third Party Logistics  3PL Supply Chain 3PL Supply Chain  Defined as a firm that provides service to its customers of outsourced (3 rd Party) logistics as part of their supply chain management functions.  Typically specialized in warehousing and transportation that can be catered to customers needs.

13. Tangible Good

14. Introduction  Leading fast- food retail chain with over 200 locations in California, Nevada, and Arizona  Private, family- run, non- franchised company  Harry Snyder and his wife, Esther, opened what is said to be California's first drive-thru restaurant.  Known for its made- to –order hamburgers, fresh ingredients and efficient service  Maintained the steady rate of expansion with traditional menu and a simple, customer- friendly philosophy

15. Distribution  Own distribution system  Private butchers, warehouses, truck lines  Must improve system to expand beyond west coast and maintain strategic position

16. Comprehensive Model of the Marketing Distribution Channel Supplier In-N-Out Consumer Distributor

17. Discussion Questions  Do you believe In-N-Out Burger should remain non franchised or branch out like their competitors?  What are the complexities of using international distribution channels?

18. References  http://extensionengine.com/project-vs-product- management/ http://extensionengine.com/project-vs-product- management/  http://www.referenceforbusiness.com/history/He- Ja/In-N-Out-Burgers-Inc.html#b http://www.referenceforbusiness.com/history/He- Ja/In-N-Out-Burgers-Inc.html#b  http://partners.visitrenotahoe.com/innoutburger http://partners.visitrenotahoe.com/innoutburger