MARK3001 Lecture 10 Outline of Last Lecture I The Supply Chain DIAGRAM II Logistics a Definition b Objective c Usually measured in terms of i Order cycle time ii Product availability iii Order accuracy iv Flexibility v Information d Logistical components of the supply chain i Sourcing and procurement 1 Objective ii Production scheduling 1 Definition 2 Build to stock vs build to order 3 Build to stock example 4 Build to order example iii Order processing 1 Definition 2 EDI a Definition 3 VMI a Definition iv Inventory control 1 Definition 2 Goal v Warehouse and material handling 1 Functions 2 Dedicated Strategy a Definition 3 Random Strategy a Definition These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute vi Transportation 1 Railroads 2 Motor Carriers 3 Pipelines 4 Water 5 Airways III Trends in supply chain management a Advanced computer technology RFID i Example b Outsourcing of logistics functions 3PL s i Explanation of 3PL ii Example c Electronic Distribution IV Relationship of logistics to marketing mix a Example Outline of Current Lecture I Product a Definition II Service a Definition 1 b Definition 2 c Services are i Intangible ii Inseparable iii Perishable iv Heterogeneous III Key dimensions of service quality a How consumers view quality i Reliability ii Responsiveness iii Assurance iv Empathy v Tangibles IV Adjusting the marketing mix a Basic marketing mix 4 P s is expanded b Expanded 4 P s of marketing i Processes Physical Evidence and People ii People 1 Explanation 2 Example iii Physical Evidence 1 Definition 2 Serviscape iv Processes 1 Definition c The 4 Basic P s i Product ii Place iii Price iv Promotion 1 Interactive imagery Current Lecture V Product a A physical good idea or service VI Service a Intangible tasks b Any deed act or performance c Services are extremely important d Employment and economy of USA is predominantly service based e Services are i Intangible 1 They cannot be seen touched tasted felt stored 2 This makes the evaluation of quality a very difficult task 3 High in credence attributes 4 High in experience attributes eating at a restaurant 5 Physical goods you can usually tell the quality before you buy it high in search attributes ii Inseparable 1 Consumer generally must be present 2 Must manage consumer iii Perishable 1 Services can not be produced ahead of time and stored 2 Production and consumption occur at the same time 3 Cannot inspect out defects 4 Must carefully manage supply and demand iv Heterogeneous 1 Different from time to time 2 Must set standards use scripts etc Chick fil a employees always say my pleasure VII Key dimensions of service quality a How consumers view quality i Reliability is the service performed correctly ii Responsiveness is the service performed on time iii Assurance do the employees look like talk like they know what they re doing iv v VIII a b c d Empathy do the employees care Tangibles what is the environment like Are physical surroundings attractive clean etc Adjusting the marketing mix Basic marketing mix 4 P s is expanded Strategies applications differ in each of the 4 P s as compared to applications for physical goods Expanded 4 P s of marketing i Processes Physical Evidence and People ii People 1 The employees the customer and even other customers all influence the quality of the experience 2 Example Kids in a restaurant iii Physical Evidence 1 The tangible part of the service 2 The serviscape the landscape that involves the service iv Processes 1 The activities which lead up to and are a part of the service The 4 Basic P s i Product 1 Emphasize the service process 2 Build the brand image ii Place 1 Generally no intermediaries convenience very important iii Price 1 Prices are harder to justify and set 2 Use the price to adjust demand to supply iv Promotion 1 Focus on making services seem tangible 2 Share good performance ratings 3 Emphasize core service key service being purchased 4 Use a logo that reflects service a Interactive imagery if you look at the logo by itself can you tell what it does and what the company is