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time ? Spatial convenience ? Product variety ? Service backup 169。2023 Prentice Hall Channel Management Decisions Selecting FEEDBACK Motivating Training Evaluating 169。2023 Prentice Hall Types of Vertical Marketing Systems Corporate Common Ownership at Different Levels of the Channel Contractual Contractual Agreement Among Channel Members Administered Leadership is Assumed by One or a Few Dominant Members 169。2023 Prentice Hall Conventional Distribution Channel vs. Vertical Marketing Systems Vertical marketing channel Manufacturer Retailer Conventional marketing channel Consumer Manufacturer Consumer Retailer Wholesaler Wholesaler 169。2023 Prentice Hall Causes of Channel Conflict ? Inpatibility ? Difference in Perception ? Dependence Legal Ethical Issues in Channel Relations ? Exclusive Dealing ? Exclusive Territories ? Tying Agreements ? Dealers’ Rights 169。2023 Prentice Hall Objectives ? Retailing ? Wholesaling ? Market Logistics 169。2023 Prentice Hall Four Levels of Retail Service ? Selfservice ? Selfselection ? Limitedservice ? Fullservice 169。2023 Prentice Hall Classification Of Retailer Types Specialty Stores Department Stores Supermarkets Convenience Stores OffPrice Retailer Superstores Catalog Showroom Wide Variety of Product Lines . Clothing, Home Furnishings, Household Items Wide Variety of Food, Laundry, Household Products Limited Line of HighTurnover Convenience Goods Inexpensive, Overruns, Irregulars, and Leftover Goods Large Assortment of Routinely Purchased Food Nonfood Products, Plus Services Broad Selection, Fast Turnover, Discount Prices Narrow Product Line, Deep Assortment Store Type Length and Breadth of Product Assortment Discount Stores Broad Product Line, Low Margin, High Volume 169。2023 Prentice Hall Types of NonStore Retailing Direct Selling Direct Marketing Buying Services NonStore Retailing Accounts for More Than 12% of All Consumer Purchases, and is trending up. Automatic Vending 169。2023 Prentice Hall Low Price Low Status Low Margin Mid Price Mid Status Mid Margin High Price High Status High Margin Wheel of Retailing 169。2023 Prentice Hall Why are Wholesalers Used? Wholesaler Functions Management Services Advice Selling and Promoting Market Information Buying and Assortment Building Risk Bearing Bulk Breaking Transporting Financing Warehousing 169。2023 Prentice Hall Goals of the Logistics System ? Provide a Targeted Level of Customer Service at the Least Cost. ? Maximize Profits, Not Sales. Higher Distribution Costs/ Higher Customer Service Levels Lower Distribution Costs/ Lower Customer Service Levels 169。2023 Prentice Hall Inventory When to order How much to order Justintime Costs Minimize Costs of Attaining Logistics Objectives Warehousing Storage Distribution Order Processing Submitted Processed Shipped Logistics Functions Transportation Water, Truck, Rail, Pipeline Air Logistics Systems 169。2023 Prentice Hall Rail Nation’s largest carrier, costeffective for shipping bulk products, piggyback Truck Flexible in routing time schedules, efficient for shorthauls of high value goods Water Low cost for shipping bulky, lowvalue goods, slowest form Pipeline Ship petroleum, natural gas, and chemicals from sources to markets Air High cost, ideal when speed is needed or to ship highvalue, lowbulk items Transportation Modes 169。2023 Prentice Hall 1. Speed. 2. Dependability. 3. Capability. 4. Availability. Checklist for Choosing Transportation Modes 169。2023 Prentice Hall Rating Transportation Modes Rail 3 4 2 2 3 Water 4 5 1 4 1 Truck 2 2 3 1 4 Pipeline 5 1 5 5 2 Air 1 3 4 3 5 Source: See Carl M. Guelzo。 Introduction to Logistics Management Englewood Cliffs, NJ: Prentice Hall, 1986), p. 46. (Doorto door delivery time) (Meeting Schedules on Time) (Ability to Handle Various Products) (No. of Geographic Points Served) (Per Ton Mile) Speed Dependability Capability Availability Cost 169。2023 Prentice Hall Advertising Personal Selling Any Paid Form of Nonpersonal Presentation by an Identified Sponsor. Sales Promotion Shortterm Incentives to Encourage Trial or Purchase. Public Relations Direct Marketing Direct Communications With Individuals to Obtain an Immediate Response. Protect and/or Promote Company’s Image/products. Personal Presentations. The Marketing Communications Mix 169。2023 Prentice Hall Message Problems Selective Attention Selective Distortion Selective Retention 169。2023 Prentice Hall Effective Communications Step 1. Identifying the Target Audience Purchase Conviction Preference Liking Knowledge Awareness Step 2. Determining the Communication Objectives Buyer Readiness Stages 169。2023 Prentice Hall Step 3. Designing the Message Message Source Expertise, Trustworthiness, Congruity Message Format Layout, Words, Sounds, Body Language Message Structure Draw Conclusions Argument Type Argument Order Message Content Rational Appeals Emotional Appeals Moral Appeals 169。2023 Prentice Hall Step 4. Select Communications Channel Nonpersonal Communication Channels Personal Communication Channels 169。2023 Prentice Hall Step 5. Establish the Budget Competitive Parity Objective Task Affordable % Of Sales 169。2023 Prentice Hall Step 6. Decide on Communications Mix Advertising Public, Pervasive,