Marketing Channels Delivering Customer Value Chris Beltran, Messaline Clement, Mireya Gama, Cody Prue
Agenda • Chapter 12 Key Ideas • Video • In-N- Out Comprehensive Model • Discussion Questions
Direct Marketing Channel vs. Conventional Marketing Channel Conventional Direct
Vertical Marketing System In-N-Out: Corporate VMS Ford: Contractual VMS Walmart, Home Depot: Administered VMS Horizontal Marketing System Walmart & McDonalds Taco Bell & Pizza Hut
Supply Chain Management • Supply Chain Management • Managing upstream and downstream value- added flows of materials, final goods, and final consumer
Channel Management Decision Selecting Channel Members Managing and motivating channel members Evaluating channel members
Public Policy and Distribution Decisions • Exclusive territorial agreements • Producer or seller limit territory • Exclusive dealing • Seller requires that the sellers not handle competitor’s products • Exclusive distribution • Seller allows only certain outlets to carry its products • Tying agreements • Dealer must take most or all of the line
Major Logistics Functions • Marketing logistics: • Planning, implementing, and controlling the physical flow of goods and services from points of origin to points of consumption • Transportation • Trucks- 40% • Railroads- 40% • Water carriers- Less than 5% • Air carriers & Pipelines- Less than 1%
Third Party Logistics • 3PL Supply Chain • Defined as a firm that provides service to its customers of outsourced (3rd Party) logistics as part of their supply chain management functions. • Typically specialized in warehousing and transportation that can be catered to customers needs.
Introduction • Leading fast- food retail chain with over 200 locations in California, Nevada, and Arizona • Private, family- run, non- franchised company • Harry Snyder and his wife, Esther, opened what is said to be California's first drive-thru restaurant. • Known for its made- to –order hamburgers, fresh ingredients and efficient service • Maintained the steady rate of expansion with traditional menu and a simple, customer- friendly philosophy
Distribution • Own distribution system • Private butchers, warehouses, truck lines • Must improve system to expand beyond west coast and maintain strategic position
Discussion Questions Do you believe In-N-Out Burger should remain non franchised or branch out like their competitors? What are the complexities of using international distribution channels?
References http://extensionengine.com/project-vs-product-management/ http://www.referenceforbusiness.com/history/He-Ja/In-N-Out-Burgers-Inc.html#b http://partners.visitrenotahoe.com/innoutburger