1. Chapter 12 - slide 1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Marketing Channels Delivering Customer Value

2. Chapter 12 - slide 2 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Marketing Channels Delivering Customer Value 1.Supply Chains and the Value Delivery Network 2.The Nature and Importance of Marketing Channels Topic Outline

3. Chapter 12 - slide 3 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The supply chain consists of two types of partners: Upstream partners include raw material suppliers, components, parts, information, finances, and expertise to create a product or service Downstream partners include the marketing channels or distribution channels that look toward the customer 1. Supply Chain Partners

4. Chapter 12 - slide 4 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Supply Chains and the Value Delivery Network From supply chain to demand chain… Supply chain “make and sell” view includes the firm’s raw materials, productive inputs, and factory capacity Demand chain “sense and respond” view suggests that planning starts with the needs of the target customer, and the firm responds to these needs by organizing a chain of resources and activities with the goal of creating customer value Supply Chain Views

5. Chapter 12 - slide 5 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Supply Chains and the Value Delivery Network Value delivery network is the firm’s suppliers, distributors, and ultimately customers who partner with each other to improve the performance of the entire system Value Delivery Network

6. Chapter 12 - slide 6 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2. The Nature and Importance of Marketing Channels a.Intermediaries offer producers greater efficiency in making goods available to target markets. Through their contacts, experience, specialization, and scale of operations, intermediaries usually offer the firm more than it can achieve on its own. b.Using intermediaries reduces number of channel transactions. 2.1. How Channel Members Add Value

7. Chapter 12 - slide 7 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Nature and Importance of Marketing Channels c. From an economic view, intermediaries transform the assortment of products into assortments wanted by consumers d. Channel members add value by bridging the major time, place, and possession gaps that separate goods and services from those who would use them How Channel Members Add Value

8. Chapter 12 - slide 8 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Nature and Importance of Marketing Channels 2.2. Functions performed by channel members InformationPromotionContact MatchingNegotiation Physical distribution FinancingRisk Taking

9. Chapter 12 - slide 9 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Nature and Importance of Marketing Channels See figure 12.2, page 365 3. Channel structure and levels

10. Chapter 12 - slide 10 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Nature and Importance of Marketing Channels Depending on the distribution policy of the firm: Intensive Selective Exclusive 4. Number of channel members

11. Chapter 12 - slide 11 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2010 Pearson Education, Inc. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall