Principles of marketing: Lecture 29

MGT301
Principles of Marketing
Lecture­29


Summary
of  
Lecture­28



Manufacturer

Customer

Manufacturer

Customer

Manufacturer
Customer
Manufacturer
Customer
Manufacturer
20 Contacts


Manufacturer
Customer
Manufacturer
Manufacturer

Customer
Wholesaling
Intermediary

Customer

Manufacturer
Customer
Manufacturer
9 Contacts


Marketing Channels for Consumer 
Goods
Producer

Consumer

Producer

Retailer

Producer

Producer

Wholesaler

Agent/

Broker

Wholesaler

Retailer

Retailer

Consumer

Consumer

Consumer


Marketing Channels for Business Goods
Business
User

Producer

Producer

Agent/
Broker

Producer

Producer

Agent/
Broker

Business
User

Wholesaler

Business
User

Wholesaler

Business
User


Channel Design Decisions
Analyzing
Analyzing Consumer
Consumer Service
Service Needs
Needs
Setting
Setting Channel
Channel Objectives
Objectives &
& Constraints
Constraints
Identifying

Identifying Major
Major Alternatives
Alternatives

Intensive
Intensive
Distribution
Distribution

Selective
Selective
Distribution
Distribution

Exclusive
Exclusive
Distribution
Distribution

Evaluating
Evaluating the
the Major
Major Alternatives
Alternatives


Channel Management Decisions

Motivating
Motivating

Evaluating
Evaluating

FEEDBACK

Selecting
Selecting


Today’s Topics

Logistic Management
Push Versus Pull Strategy


Producer

Marketing
activities

Intermediaries

Demand
End users

Demand
Push Strategy

Marketing activities

Producer

Demand

Intermediaries

Demand

End users

Pull Strategy


Producer

Marketing
activities

Intermediaries

Demand
End users

Demand

Push Strategy
Marketing activities

Producer

Demand

Intermediaries

Demand

End users

Pull Strategy


Marketing Logistics and Supply Chain 
Management
Companies must decide on the best way to store, 
handle, and move their products and services from 
points of origin to points of consumption.


Marketing Logistics (physical 
distribution)
The tasks involved managing the physical flow of 
materials, final goods, and related information from 
points of origin to points of consumption to meet 
customer requirements at a profit.


Supply Chain Management
Managing upstream and downstream value­added 

flows of materials, final goods, and related 
information among suppliers, the company, 
reseller, and final consumers


Marketing Logistics and Supply 
Chain Management


Involves getting the right product to the right 
customers in the right place at the right time.



Marketing logistics addresses:
– Outbound distribution,
– Inbound distribution,
– Reverse distribution,
– Entire supply chain management.


Supply Chain Management 


Nature and Importance of Marketing 
Logistics
Involves getting the right product to the right 
customers in the right place at the right time.

Companies today place greater emphasis on logistics 
because…..

– Effective logistics is becoming a key to winning and keeping 
customers.
– Logistics is a major cost element for most companies.


–  The explosion in product variety has created a 
need for improved logistics management.
–  Information technology has created 
opportunities for major gains in distribution 
efficiency. 



Functions of Logistics Systems

Costs
Costs
Minimize
MinimizeCosts
Costsof
of
Attaining
AttainingLogistics
Logistics
Objectives
Objectives

Order
OrderProcessing
Processing
Submitted
Submitted
Processed
Processed
Shipped
Shipped
Logistics

Transportation
Water, Truck, Rail,
Pipeline & Air

Functions

Inventory
Inventory
When
Whento
toorder
order
How
much
to
How much toorder
order
Just-in-time
Just-in-time

Warehousing
Warehousing
Storage
Storage
Distribution
Distribution


Costs


Order Processing