BU352 Lecture Notes - Lecture 15: Logistics, Supply Chain, Service Merchandise
Document Summary
Place chapter 13 - distribution and retailing. Reaching out: through communication (promotion) and distribution channels (place) In selling and in building brands in communicating, offline and online all of your possible touchpoints should come together. Distribution components: supply chain: suppliers and supplier networks. Deals with the inbound flow of raw materials and parts. Deals with outbound flow of finished products. Consumers: logistics management: deals with the flow of materials and information. What do channels do: manufacturer to consumers, deal with: Pricing/financing: sharing some of the financial risk. Multi-channel structure: when a single firm sets up two or more distribution channels to reach multiple customers segments. Transactional value (ex. lower cost, risk, marketing) Logistical value (ex. assortment, storage/sorting/bulk breaking, transportation) Facilitating value (ex. financing, information/training/after-sales service: disadvantages: End up losing control might have substantial bargaining power. Enforce their own terms and conditions where the manufacturer can lose control over marketing aspects.
