Customer Service Marketing REVIEW Channel StructureDesign Setting distribution objectives Meeting customer needs is the ultimate goal Specifying distribution tasks who does what along the supply chain channel of distribution ID: 279072
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Slide1
Distribution: Customer Service
MarketingSlide2
REVIEW Channel Structure/Design
Setting distribution objectives
Meeting customer needs is the ultimate goal
Specifying distribution taskswho does what along the supply chain (channel of distribution)Considering alternative channel structuresThree dimensions: Length/Intensity/Types of intermediaries Choosing optimal channel structuresEach participant in the marketing channel focuses on performing those activities at which it is most efficient. This results in much greater efficiency and higher output.
2Slide3
Intensity of Channel Structure
Channel intensity
:
the number of intermediaries at each level of the marketing channel.3
All Possible
Intermediaries
Relatively Few
Intermediaries
Just One
Intermediary
Intensive
Exclusive
SelectiveSlide4
Intensive Distribution
= the use of all suitable outlets to sell a product.
The objective is complete market coverage and the ultimate goal is to sell to as many customers as possible, wherever they choose to shop. Ex. Motor oil is sold in quick-lube shops, farm stores, auto parts retailers, supermarkets, drugstores, hardware stores, warehouse clubs, and other mass merchandisers.4Slide5
Selective Distribution
= a limited number of outlets in a given geographical area are used to sell the product.
Very important to select channel members that maintain the image of the product & are good credit risks, aggressive marketers & good inventory planners.
Ex. Armani & Lucky Brand sell their clothing only through top department stores that appeal to the affluent customers who buy its merchandise. It does not sell in a chain megastore or a variety store.5Slide6
Exclusive Distribution
= protected territories for distribution of a product in a given geographic area; business maintains tight control over a product
Ex. Franchisor
legally requires a franchisee to sell only the franchisor’s products6Slide7
Integrated Distribution
Manufacturer acts as wholesaler and retailer for its own products.
EX. Sherwin-Williams Paint, Merle Norman
Ex. The Gap or Ann Taylor sells its clothing in company-owned retail stores.7Slide8
OBJECTIVE TWO
:
Explain the relationship between customer service and channel management
8Slide9
Explain how customer service facilitates order processing
Ensures timely delivery of products
Effective communication is important
Order processingCorrect shipping informationCorrect productsHandling complaintsReducing the probability of complaintsNice and friendly people9Slide10
Identify actions that customer service can take to facilitate order processing
EX. In retail selling
Bag the merchandise with care.
Products such as glassware may require individual wrapping before bagging. Work quickly to bag your customer’s merchandise and complete the payment process. EX. In business-to-business salesComplete the paperwork quickly and leave a business card.
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Customer
Warehouse
Call Center
Online Order
Inventory Check
Items
in Stock?
No, Customer Notified of Backorder
Yes, Item Packed for Shipment
Accounts Receivable Processes Payment
Item Shipped
Actions to Facilitate Order ProcessingSlide12
Describe the role of customer service in following up on orders
Following up with your customers after the sale is an important part of providing good customer service.
Should customer have questions or problems it is your duty to make sure they have a positive experience with your company.
12Slide13
13
Use of Technology in Distribution
Some businesses have the capacity to distribute most or all of their products through the internet
e-commerce: Products are sold to customers and industrial buyers through the Internet.Satellite tracking = a dispatcher has current knowledge of a delivery truck’s location and destinationSlide14
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Use of Technology in Distribution (cont.)
Tracking of package
Bar coding on packagePackage scanned at transition points in distribution chainCustomer uses internet to follow package along distribution chain; e-mail may be usedGlobal distribution: in some countries the postal service is not reliable; package tracking facilitates global tradeSlide15
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Use of Technology in Distribution (cont.)
Problems
Cost of technologyChanging technology = updating equipmentNeed for compatible systems within and between businesses & countriesSlide16
Video
http://channel.nationalgeographic.com/channel/ultimate-factories/videos/ups
/
Slide17
Unit 3 Test
3.1: Product Packaging & Life Cycle
3.3: Product Mix
3.4: Branding3.6: Pricing3.7: Distributionhttp://quizlet.com/31499624/flashcards