MARK3001 Lecture 10 Outline of Last Lecture I. The Supply Chain [DIAGRAM]II. Logisticsa. Definitionb. Objective c. Usually measured in terms ofi. Order cycle time ii. Product availabilityiii. Order accuracy iv. Flexibilityv. Information d. Logistical components of the supply chain:i. Sourcing and procurement1. Objectiveii. Production scheduling1. Definition2. Build to stock vs. build to order3. Build to stock example4. Build to order exampleiii. Order processing1. Definition2. EDI a. Definition3. VMIa. Definitioniv. Inventory control1. Definition2. Goal v. Warehouse and material handling1. Functions2. Dedicated Strategya. Definition3. Random Strategya. DefinitionThese 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. Transportation1. Railroads 2. Motor Carriers 3. Pipelines 4. Water 5. Airways III. Trends in supply chain managementa. Advanced computer technology (RFID)i. Example b. Outsourcing of logistics functions (3PL’s)i. Explanation of 3PLii. Examplec. Electronic DistributionIV. Relationship of logistics to marketing mix:a. ExampleOutline of Current Lecture I. Product:a. DefinitionII. Service:a. Definition 1b. Definition 2c. Services are…i. Intangibleii. Inseparableiii. Perishableiv. HeterogeneousIII. Key dimensions of service qualitya. How consumers view quality:i. Reliability ii. Responsiveness iii. Assurance iv. Empathy v. Tangibles IV. Adjusting the marketing mixa. Basic marketing mix (4 P’s) is expandedb. Expanded 4 P’s of marketingi. Processes, Physical Evidence, and Peopleii. People:1. Explanation2. Exampleiii. Physical Evidence: 1. Definition2. “Serviscape”iv. Processes:1. Definitionc. The 4 Basic P’si. Product:ii. Place:iii. Price:iv. Promotion:1. Interactive imageryCurrent LectureV. Product:a. A physical good, idea, or serviceVI. Service:a. Intangible tasksb. Any deed, act, or performancec. Services are extremely importantd. Employment and economy of USA is predominantly service-basede. Services are…i. Intangible1. They cannot be seen, touched, tasted, felt, stored2. This makes the evaluation of quality a very difficult task3. High in credence attributes4. 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. Inseparable1. Consumer generally must be present2. Must manage consumeriii. Perishable1. Services can not be produced ahead of time and stored2. Production and consumption occur at the same time3. Cannot inspect out defects4. Must carefully manage supply and demandiv. Heterogeneous1. Different from time to time2. Must set standards, use scripts, etc. (Chick-fil-a employees always say “my pleasure”)VII. Key dimensions of service qualitya. 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. Empathy – do the employees care?v. Tangibles – what is the environment like? Are physical surroundings attractive, clean, etc.? VIII. Adjusting the marketing mixa. Basic marketing mix (4 P’s) is expandedb. Strategies/applications differ in each of the 4 P’s as compared to applications for physical goodsc. Expanded 4 P’s of marketingi. Processes, Physical Evidence, and Peopleii. People:1. The employees, the customer (and even other customers) all influence the quality of the experience2. Example: Kids in a restaurantiii. Physical Evidence: 1. The tangible part of the service2. The “serviscape” – the landscape that involves the serviceiv. Processes:1. The activities which lead up to and are a part of the serviced. The 4 Basic P’si. Product:1. Emphasize the service process2. Build the brand imageii. Place:1. Generally no intermediaries (convenience very important)iii. Price:1. Prices are harder to justify and set2. Use the price to adjust demand to supplyiv. Promotion:1. Focus on making services seem tangible2. Share good performance ratings3. 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