MKTG 350 1st EditionExam # 3 Study Guide Chapters: 16-19, 3Chapter 16Supply chain management- a set of approaches and techniques that firms use to integrate suppliers, manufactures, warehouses, stores, and transportation intermediaries so that products are distributed in the right quantity to the right location at the right time while minimizing cost. Logistics management – activities involved-- the activities that are preformed by the members of the channel Examples: customer service, demands forecasting, distributor communication, inventory control, materials handling, order processing, parts and service support, plant and site selection, procurement, packaging, handle the return on goods, transportation, warehousing and storage. EDI-- computer-to-computer communication (automatic purchases – less mistakes) -- Cycle time- the amount of time from when you order the product until it reaches the store, Easily analyzed and used, Quality communicationsPush and pull distribution systems- Push- merchandise is replenished on the basis of demand. Pull- merchandise is ordered based on sales data RFID- micro chips imbedded in the product so it can be trackedJIT and Q-R systemsvertical marketing systems – independent, administered, contractual and corporate Administered 1. vertical marketing system-Different members of the channel realize it is in their best interest to work together to serve the customer, A dominant member of the channel (usually the retailor- because they know what the customers are willing to buy) 2. Contractual vertical marketing system. A legal contract – legally have to work together (franchises) 3. Corporate vertical marketing system, Different levels of the channel are actually owned by the same company, Manufacture (far removed) retailor so they open up their own retail firm, Lilly Pulitzer, Forward integration- when a manufacture opens up its own retail shop, Grocery stores- own their own farm (backward integration) retailor starts then opens a manufacturing plant 4. Independent channel, traditional, or conventional, No relationship between manufacture and different members of the channel, Every member of the channel works alone to make as most profit as they can Chapter 17Retailing – definition- all of the business activities that add value to all of the products and services sold to consumers for their personal non-business use Retailing – unique features (from lecture only – breaking bulk, assortment, atmospherics) Controllable- Products and services that you offer, Location, Price, How we are going to market the products. Uncontrollable – Customer, Competition, Economy, Seasonality Services retailers (trend in growth of services retailers)- - firms that primarily sell services rather than merchandise, are a large and growing part of the retailIntensive, selective and exclusive distribution- Intensive- product in as many outlets as possible – product is a convenience product. Exclusive- select one location in a given geographic area- people like your product so much they will drive out of their way for it- Rolex, and high end car places – specialty. Selective- going to select certain retailers (some will be a good fit and some wont)- usually for shopping products some degree of control over the retailers Convenience stores- very limited, necessities and good locationsSpecialty stores- limited merchandise with services in a small store Dept. stores- broad variety and deep assortment Category killers- discount with narrow but deep assortment- cover everything in one particular category (DSW, Lowes, Barns and Noble, Babies R Us)- competition cant really competeExtreme value retailers- full line, limited, very low prices (dollar stores- say dollar in them but not necessarily all products are a dollar- might even sell national brands but in smaller packages) Off-price retailers- - inconsistent assortment of brand name at low prices (TJ Max, Marshals) price is discount from regular retail price but not crazy – they buy opportunistic items (factory outlet store- buy owned by actual retailer) Customer relationship management (CRM)- a centralized customer data warehouse that houses a competitive history with a centralized customer data warehouse that houses a complete history of each customer’s interaction with the retailer, regardless of whether the sale occurred in store, on the internet,or over the telephone. Benefits of the store and multichannel retailing channels- Deeper and broader selection, Personalization, Gain insights into consumer shopping behavior, Increase customer satisfaction and loyalty (share of wallet- in store and online = more money at that particular store), Expand market presents Chapter 18 IMC – definition, components of- anyway that we can communicate with the customer –tools – advertising, public relations, personal selling, sales promotion, direct marketing, online marketing/ social media – reach customer with a clear and consistent message – Customers, Results, Communication channel Communications process – know what’s happening in the stages- 1. Sender- message that they want to communicate1. Transmitter encodes message- songs jingles- put into some kind of meaningful message- use of an agency2. Communication channel (media)- ways to distribute the message – TV, radio, bill boards, print3. Receiver decodes message- watching TV- seeing the adds – decode to make meaning of the message (critical)  we bring baggage when we decode a. Feedback- buy the product, go to website, complain, etc. b. Noise from the environment- literal noise, or distraction – must break though clutter to get the message AIDA- awareness  interest  desire  actionTOMA- - top of mind awareness- firm that you think of first (which restaurant do you think of first) – strength of brand in the product classAdvertising – advantages of- an informative and or persuasive message by an identified sponsor that comes though the mass channels of communication. Most visible element of IMC, Extremely effective at creating awareness and generating interest Personal selling- Some products require the help of a sales person, More expensive than other forms of promotions, Salespeople can add significant value, which makes the expense worth it, Flexible and interactive- can be face to face, on the phone or internetPR- Free media attention, Importance of PR has grown as a cost of other media has increase, Consumers