1. If you sell tangible goods, channels and logistics matter GOALS: You could explain push vs. pull strategies and what channels need to accomplish (231-233), what makes for better channel arrangements (236- 238), how to cope with channel conflict (242-243), and how to set and implement logistics objectives (259-262).

2. 13-2 ManufacturerChannel partnerCustomer Push Strategy: ManufacturerChannel partnerCustomer Communication Flow Product Flow Pull Strategy:

3. 13-3 TASKS for some part of the channel (p. 233 offers more detail in a table) Transport tangible goods Advertise, which may include gathering information about buyers, competition, changes in the legal environment -- whatever Store inventory Kontact buyers, and after a sale Kollect the agreed-on price

4. 13-4 So how would you design a channel, or evaluate the one you have? Establish channel objectives from the customers’ perspective: Speed? Efficiency to cut costs? Convenience? Identify major channel alternatives: Where would customers expect to buy what you are marketing? Evaluate major channel alternatives. The Internet may be a second channel where you sell direct

5. 13-5 Managing Channel Conflict Adoption of superordinate goals Exchange of employees Joint membership in trade associations Co-optation (give channel members at least advisory roles, and maybe power) Diplomacy, mediation, or arbitration Legal recourse

6. 13-6 Logistics: think of cost/service tradeoffs M = T + FW + VW + S Where... M = total market-logistics cost of proposed system; T = total freight cost of proposed system; FW = total fixed warehouse cost of proposed system; VW = total variable warehouse cost of proposed system S = total cost of lost sales due to average delivery delay Calculating the Cost of Market-Logistics Systems

7. Why services are the path to profit or disaster GOALS: you could explain why services are risky to market because they are risky to buy --- and what to do about that (195-205)

8. 11-8 Repairs? Education? Consulting? How do we make these services “tangible”? Place People Equipment Communication Symbols

9. 11-9 Air travel? Restaurant? Haircutters? How do we make “inseparable” pay off? Services are produced and consumed at the same time (air travel) Strong preferences for service providers exist (Who holds that scissors?) Those who provide the service, and often others who are buying it, become part of the service experience (restaurants)

10. 11-10 Think about any service company/organization Perishability How do we match demand to supply becomes the relevant question. Services cannot be inventoried or otherwise stored Capacity/demand management is critical Demand-side strategies Supply-side strategies