This is useful for educators and students of MBA/ Business studies. this is made in lucid style for easier understanding, exams preparation, and teaching and learning purpose.

1. MARKETING MANAGEMENT
Developing PLACE Strategies
D.V. Madhusudan Rao
Dept. MBA,
School of Graduate Studies,
Jigjiga University
ETHIOPIA
1

2. Chapter Questions
• What is a marketing channel system and value
network?
• What work do marketing channels perform?
• How should channels be designed?
• What decisions do companies face in managing their
channels?
• How should companies integrate channels and
manage channel conflict?
• What are the key issues with e-commerce?
• How will be the Future? Is it M-Commerce or ….?
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3. What is a Marketing Channel?
A marketing channel system is the particular
set of interdependent organizations involved
in the process of making a product or service
available for use or consumption.
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3

4. Channels and Marketing Decisions
• A Push strategy uses the manufacturer’s sales
force, trade promotion money, and other means to
induce intermediaries to carry, promote, and sell the
product to end users
Application: It is appropriate for low-brand loyalty
products, impulse items, brand choice is made in stores
products and products benefits are well understood.
• A Pull strategy uses advertising, promotion, and other
forms of communication to persuade consumers to
demand the product from intermediaries
Application: It is appropriate for high brand loyalty and
high involvement products, consumers are able
perceive differences between brands and when they
choose the brand before they go to the store.
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5. Buyer Expectations for Channel Integration
• Ability to order a product
online and pick it up at a
convenient retail location
• Ability to return an online-
ordered product to a
nearby store
• Right to receive discounts
based on total online and
offline purchases
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5

6. Marketing Flows
in the Marketing Channel
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7. Categories of Buyers
• Habitual shoppers—purchase from the same places in the
same manner over time
• High value deal seekers—know their needs and “channel
surf” a great deal before buying at the lowest possible price
• Variety-loving shoppers—gather information in many
channels, regardless of price
• High-involvement shoppers—gather information in all
channels, make their purchases in a low-cost channel, but
takes advantage of customer support from a high-touch
channel
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8. Consumer Marketing Channels
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9. Industrial Marketing Channels
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9

10. Increasing Efficiency
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10

11. Types of Shoppers
• Service/quality customers—care most about
the variety and performance of products in
stores as well as the service provided
• Price/value customers—most concerned
about spending their money wisely
• Affinity customers—sought stores that suited
people like themselves or the members of
groups they aspired to join
1/3/2013

12. Channel Member Functions
• Gather information
• Develop and disseminate persuasive
communications
• Reach agreements on price and terms
• Acquire funds to finance inventories
• Assume risks
• Provide for storage
• Provide for buyers’ payment of their bills
• Oversee actual transfer of ownership
1/3/2013 12

13. Designing a Marketing Channel System
Analyze customer needs
Establish channel objectives
Identify major channel alternatives
Evaluate major channel alternatives
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14. Channel Service Outputs
• Lot size—number of units the channel permits a typical
customer to purchase on one occasion
• Waiting/delivery time—average time customers of that
channel wait for receipt of the goods
• Spatial convenience—degree to which the marketing channel
makes it easy for customers to purchase the product
• Product variety—assortment breadth provided by the
marketing channel
• Service backup—add-on services (credit, delivery, installation,
repairs) provided by the channel
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15. Channel objectives
• State in terms of targeted service output levels
• Minimize total cost and still provide desired levels of
service output
• Channel Objectives vary with product characteristics
– Perishable products—more direct marketing
– Bulky products—minimize shipping distance
– Nonstandard products—sold directly by sales
representatives
– Products requiring installation or maintenance
service—sold and maintained by company or
franchised dealers
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16. Identifying Channel Alternatives
Types of
intermediaries
Number of
intermediaries
Terms and
responsibilities
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17. No. of Intermediaries: Strategies
Market
Intensive Exposure
Strategies
Selective
Selective
= number of
Exclusive outlets
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18. Exclusive Distribution
Exclusive: Limiting the distribution to only one intermediary in the
territory
• LEICA was officially appointed Jebsen & Jebsen Marketing as the
exclusive distributor for Singapore, Malaysia, Thailand, Indonesia
and Brunei
• A main factor in choosing J&J was its expertise in “high-quality
technical products on the consumer market.”
Source: Smartinvestor, Singapore Ed. June 2000
Advantages: Maximize control over service level/output
• Enhance product’s image & allow higher markups
• Promotes dealers loyalty, better forecasting, better inventory and
merchandising control
• Restricts resellers from carrying competing brands
Disadvantages: Betting on one dealer in each market
• Only suitable for high price, high margin, and low volume products
18

19. Intensive Distribution
Intensive: Distribute from as many outlets as
possible to provide location convenience
Ex: Newspapers, Most fast moving consumer goods
you see in the newsstand
• Photo processing shops
Advantages: Increased sales, wider customer
recognition, and impulse buying
Disadvantages: Characteristically low price and
low-margin products that require a fast turnover
– Difficult to control large number of retailers
19

20. Selective Distribution
Selective: Appoint several but not all are retailers
Daewoo has 2 distributors in Singapore
• “Starsauto, part of a larger Indonesian group, represents Daewoo’s
traditional line of sedans.
• Homegrown family-owned JTA Motors market Daewoo’s offroad
vehicles like the Musso and Korando, and an upmarket model called
the Chairman. (Source: BT, Motoring, Feb4/1999)
Advantages: Better market coverage than exclusive distribution
– More control and less cost than intensive distribution
– Concentrate effort on few productive outlets
– Selected firms capable of carrying full product line and provide
the required service
Disadvantages: May not cover the market adequately
– Difficult to select dealers (retailers) that can match your
requirement and goals
20

21. Terms and Responsibilities of Channel Members
• Price policy—price list and schedule of discounts and
allowances that intermediaries see as equitable and
sufficient
• Condition of sale —payment terms and producer guarantees
• Distributors’ territorial rights—distributors’ territories and
the terms under with the producer will enfranchise other
distributors
• Mutual services and responsibilities (e.g., McDonald’s
provide franchisees with a building, promotion
support, recordkeeping system, training, and general
administrative and technical assistance; franchisees are
expected to satisfy company standards for the physical
facilities, cooperate with new promotion programs, furnish
requested information, and buy supplies from specified
vendors) 1/3/2013 21

22. The Value-Adds Vs. Costs of Different Channels
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22

23. Break-Even Chart for the Choice Between A Company
Sales Force and Manufacturer’s Sales Agency
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23

24. Channel-Management Decisions
Selecting channel members
Training channel members
Motivating channel members
Evaluating channel members
Modifying channel members
1/3/2013 24

25. Channel Power
• Coercive--threat
• Reward—extra benefit
• Legitimate--contract
• Expert--knowledge
• Referent—proud to be
associated
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25

26. Channel Integration and Systems
Type of channels
Characteristics 1. Vertical marketing systems (VMS)
Traditional
Administered Contractual Corporate
Little or Some to Fairly good
Amount of cooperation none Complete
good to good
Economic One
None power and Contracts company
Control maintained by leadership ownership
Typical “inde- General
Examples McDonald’s Florsheim
pendents” Electric
2. Horizontal (symbiotic) marketing systems: Two or more unrelated companies putting
together resources to exploit a marketing opportunity . Yugoka in Japan
3. Multichannel systems
1/3/2013 26

27. Producers or Middlemen May Be Channel Captains
1/3/2013 27

28. What is Channel Conflict?
• Channel conflict occurs when one member’s
actions prevent another channel from
achieving its goal.
• Types of channel conflict
– Vertical
– Horizontal
– Multichannel
1/3/2013 28

29. Causes of Channel Conflict
• Goal incompatibility—manufacturer want rapid penetration
with low prices but dealers want high margins and pursue
short-run profitability
• Unclear roles and rights—company’s sales force competing
with dealers
• Differences in perception—manufacturers optimistic about
short-term economic outlook and want dealers to carry higher
inventory than dealers want to carry because they are
pessimistic
• Intermediaries’ dependence on manufacturer—dealers
affected by manufacturer’s product and pricing decisions
1/3/2013 29

30. Managing Channel Conflict
• Adoption of superordinate goals —
jointly seeking goals
• Exchange of employees
• Joint membership in trade associations
• Cooptation--efforts by one organization
to win the support of the leaders of
another organization by including them
in advisory councils, boards of directors,
etc
• Diplomacy--each side sends a person or
group to meet with its counterpart to
resolve a conflict
• Mediation--resorting to a neutral third
party to conciliate two parties interest
• Arbitration--two parties agree to
present arguments to one or more
arbitrators and accept the arbitration
decision
• Legal recourse
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30

31. e-Commerce Marketing Practices
E-business describes the use of
electronic means and platforms
to conduct a company’s
business.
E-commerce means, the
company site offers to transact
selling of products and services
online. E-purchasing, E-mktg
• Pure-click (only Web)
• Brick-and-click (Firm + Web)
• Brick-and-mortar (only firm)
31

32. E-Commerce: On-line Distribution
The success depends on the characteristics of
the consumers in the market in terms of their
disposition to e-commerce and surfing habits
Eg. South Korea has the most dynamic Internet
surfers in Asia. They spend the least time—28
seconds—on a web page before moving on
Australian surfers were the “stickiest”, clocking
one minute per page
(Source: March 2001 figures from Nielsen/NetRatings Globel Index)
1/3/2013 32

33. The FUTURE:M-Commerce
Cell phones , PDAs, Smart phones
UMTS
Mobile commerce is going to be the next revenue
stream once the killer mobile-application is rolled
out
The penetration of mobile data services is low in
ASPAC (1%) compared to the Western Europe
(23%), Japan (21%) and the US (7%)
(Source: ARC Group, 2000)
Japan’s NTT DoCoMo's recently launched i-Mode,
a data communications service rather like Wap,
and signed up several million customers
(Source: Intelligent Enterprise Asia, July 2001)
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34. Retailing and Wholesaling
Starbucks Hear Music Coffeehouse
34

35. Chapter Questions
• What major types of marketing intermediaries
occupy this sector?
• What marketing decisions do these marketing
intermediaries make?
• What are the major trends with marketing
intermediaries?

36. What is Retailing?
Retailing includes all the activities involved in
selling goods or services directly to final
consumers for personal, non-business use.
36

37. Planning a Retailer’s Strategy
Convenience
Product Selection
Fairness in Dealings
Key Features
Affecting
Helpful Information
Consumers’
Retail Choice
Prices
Social Image
Shopping Atmosphere

38. Types Of Retailers
Store Type Length and Breadth of Product
Assortment
Specialty Stores Narrow Product Line, Deep Assortment
Wide Variety of Product Lines i.e.
Department Stores Clothing, Home Furnishings, & Household
Items
Wide Variety of Food, Laundry, & Household
Supermarkets Products
Limited Line of High-Turnover Convenience
Convenience Stores Goods
Broad Product Line, Low Margin, High
Discount Stores Volume
Inexpensive, Overruns, Irregulars, and
Off-Price Retailer Leftover Goods
Large Assortment of Routinely Purchased
Superstores Food & Nonfood Products, Plus Services
Broad Selection, Fast Turnover, Discount
Catalog Showroom Prices
1/3/2013 38

39. Wheel of Retailing
Mid Price
Mid Status
Mid Margin
Low Price
Low Status
Low Margin High Price
High Status
High Margin
1/3/2013 39

40. Figure 18.1:
Retail
Positioning
Map
40

41. Levels of Retail Service
• Self service—many customers will to locate-
compare-select process to save money
• Self selection—customers find their own goods,
although they can ask for assistance
• Limited service—retailers carry more shopping
goods and services such as credit and
merchandise-return privileges
• Full service—salespeople are ready to assist in
every phase of the locate-compare-select process

42. Non-store Retailing
• Direct selling —multilevel selling and network marketing
selling door-to-door, or at home sales parties
• Direct marketing —direct mail, catalog marketing,
telemarketing, television direct-response marketing,
electronic shopping
• Automatic vending —variety of merchandise, impulse
goods, hosiery, cosmetics, hot food, etc.
• Buying service —storeless retailer servicing a specific
clientele—usually employees of a large organization—
who are entitled to buy from a list of retailers that have
agreed to give discounts in return for membership

43. Major Types of Corporate Retail Organizations
• Corporate chain store —two or more outlets owned and
controlled, employing central buying and merchandising, and selling similar
lines of merchandise (GAP)
• Voluntary chain —wholesaler-sponsored group of independent retailers
engaged in bulk buying and common merchandising (Independent Grocers
Alliance)
• Retailer cooperative —independent retailers using a central buying
organization and joint promotion efforts (ACE Hardware)
• Consumer cooperative —retail firm owned by its customers. Members
contribute money to open their own store, vote on its policies, elect a group
to manage it, and receive dividends
• Franchise organization —contractual association between a franchisor and
franchisees (McDonald’s)
• Merchandising conglomerate —corporation that combines several diversified
retailing lines and forms under central ownership, with some integration of
distribution and management (Allied Domeq PLC with Dunkin’ Donuts and
Baskin-Robbins, plus a number of British retailers and a wine and spirits group

44. Conventional Retailers – Try to Avoid Price Competition
Expanded Specialty Ritz Camera,
assortment shops & Coach, Gap,
& service dept. stores Macy’s
Expanded Supermarkets, Safeway, IKEA,
assortment disc. houses, Home
&/or reduced mass merch.,
margins & super-, club- Depot, Costco
Single- & service Stores, +
Conventional
limited-
Offerings
line stores C-stores, 7-11, Pepsi
Added conv., vending, door-
higher margins, vending,
reduced to-door, phone,
mail, some Avon, Lands’
assortment e-tail End, QVC
Expanded eBay, Amazon,
assortment,
reduced Internet
margins, more Zappos, Netfli
information x, Dell

45. Retailer Size and Profits
 Large retail stores do most of the business
– Only about 11% of stores sell over $5 million annually but
they account for almost 70% of retail sales
– Yet, some small retailers control "their" market
 Larger stores enjoy economies of scale
 Corporate chain stores also enjoy economies of
scale
– Account for about half of all retail sales (and much higher
in some product categories)
– Continuing to grow
 Independent retailers form chains
– Cooperative chains are retailer sponsored
– Voluntary chains are wholesaler sponsored

46. Retailing and the Internet
 Growing fast, but still in very early stages
 Convenience not defined by location of product
assortment
 More information of some types but not others
– More technical detail
– Less touch and feel
 Generally requires more advance planning
– Delivery takes time and adds costs
 Competitive effects impact other retailers
 New types of specialists and intermediaries will
continue to develop

47. Mass-Merchandising Concept
 Retailers should offer low prices to get faster
turnover and greater sales volume—by appealing to
larger markets
 Started with supermarkets in 1930s
 Really caught on with mass-merchandisers
– large stores
– self-service oriented
– Examples: Wal-Mart, Target
 Competition among mass-merchandisers has
heated up
 Limited-line mass-merchandisers (“category killers”)
grew rapidly, but growth has subsided

48. Examples of Scrambled Merchandising
 Videotapes and DVDs at grocery stores
 Microwave popcorn at video rental stores
 Computer software at bookstores
 Clothing and fashion accessories at a
motorcycle dealership
 One-hour prints from digital pictures at
drugstores

49. An Example of a Large Retail Chain

50. Department Store Model:
The Showcase Store
50

51. What is a Franchising System?
A franchising system is a system of individual
franchisees, a tightly knit group of enterprises
whose systematic operations are planned,
directed, and controlled by the operation’s
franchisor.

52. Franchise Operations
 The franchiser develops a good marketing
strategy and the retail franchise holders carry
out the strategy in their own units.
 Strong legal contracts govern the
relationship.
 Franchisers have been successful with
newcomers.
– especially popular with service operations
 Franchise sales account for about half of all
retail sales.

53. Characteristics of Franchises
• The franchisor owns a trade or service mark
and licenses it to franchisees in return for
royalty payments
• The franchisee pays for the right to be part of
the system
• The franchisor provides its franchisees with a
system for doing business

54. Advantages of Franchising

55. Disadvantages of Franchising

56. New Retail Environment
• New retail forms and combinations
• Growth of intertype competition
• Competition between store-based and non-
store-based retailing
• Growth of giant retailers
• Decline of middle market retailers
• Growing investment in technology
• Global profile of major retailers

57. New Retail Forms and Combinations
• Combination retailers—some supermarkets includes bank
branches; bookstore feature coffee shops, etc.
• Pop-ups —lt retailers promote brands, reach seasonal
shoppers for a few weeks in busy areas and create buzz (JC
Penney unveiled designer Chris Madden’s home, bath, and
kitchen line in a 2,500-square-foot Rockefeller Center space
for one month only.
• Showcase stores—Some stores not only sell other
companies’ brands but get the vendors of the brands to
take responsibility for stock, staff, and even the selling
space. The vendors then hand over a percentage of the
sales to the store’s owner

58. Some Trends in Retailing
 Growth of Internet merchants and online
retailing
 Electronic retailing (kiosks, TV, etc.)
 In-home shopping (catalogs, etc.)
 More price competition
 Vertical integration
 More chains and franchises
– chains becoming larger, more powerful
 More and better information (for example,
scanner data)

59. Retailers’ Marketing Decisions
• Target market—profile of
customer
• Product assortment—breadth
and depth
• Procurement—merchandise
sources
• Prices—decided in relation to the
target market
• Services—pre-purchase, post-
purchase, ancillary (click next
slide)

60. Retailers’ Marketing Decisions (cont.)
• Store atmosphere (click next slide)
• Store activities—brick-and-mortar
and e-commerce
• Communications—advertisement,
special sale, money-saving
coupons, etc.
• Location decision (click next slide)

61. Store Atmosphere
• Walls
• Lighting
• Signage
• Product placement
• Floors
• Surface space
• Music

62. Retail Category Management
Define the category
Figure out its role
Assess performance
Set goals
Choose the audience
Figure out tactics
Implement the plan
62

63. Retailer Services Mix
• Pre-purchase services —accepting telephone and
mail orders, advertising, window and interior
display, fitting rooms, shopping hours, fashion
shows, and trade-ins
• Post-purchase services —shipping and delivery,
gift wrapping, adjustments and returns,
alterations and tailoring, installations
• Ancillary services —general information, check
cashing, parking, restaurants, repairs, interior
decorating, credit, rest rooms, and baby-
attendant service

64. Location Decision
• General business districts—downtown
• Regional shopping centers—large suburban
malls containing 40 to 200 stores, typically
featuring one or two nationally known anchor
store, such as JC Penney or Lord & Taylor
• Community shopping centers—smaller malls
with one anchor store and between 20 and
40 smaller stores
• Strip malls strips—cluster of stores, usually
housed in one long building, serving a
neighborhood’s needs for groceries,
hardware, laundry, shoe repair, and dry
cleaning
– Location within a larger store—certain well-
known retailers—McDonald’s, Starbucks,
Nathan’s, Dunkin’ Donuts—locate new,
smaller units as concession space within
larger stores or operations, such as airports,
schools, or department stores
16-64

65. Tips for Increasing Sales in Retail Space
• Keep shoppers in the store
• Don’t make them hunt
• Make merchandise available to the reach and
touch
• Note that men do not ask questions
• Remember women need space
• Make checkout easy

66. Location decision-Indicators of Sales Effectiveness
Number of people passing by
% who enter store
% of those who buy
Average amount
spent per sale
66

67. Private Label Brands
• Private labels (reseller, store, house, or distributor
brand) is a brand that retailers and wholesalers
develop are ubiquitous
• Consumer accepts private labels
• Private-label buyers come from all socioeconomic
strata
• Private labels are not a recessionary phenomenon
• Consumer loyalty shifts from manufacturers to
retailers

68. Private Labels
68

69. Marketing Debate
Does it matter where your
products/ services are Sold?
(Channel Image Vs. Brand Image)
1/3/2013 69

70. Wal-Mart has for the first time moved into the
number one position on Fortune magazine’s
“Fortune 500” list, passing up such companies
as GM and Exxon. How has their target market
identification helped put them into this
position? What can
Wal-Mart’s chief rivals,
K-Mart and Target, do
to try to close the gap?
18-70

71. Marketing Discussion
Think of your favourite retailers.
How have they integrated their channel system?
How would you like their channels to be
integrated?
Do you use multiple channels from they? Why?
1/3/2013 71

72. Why are Wholesalers Used?
Management Selling and
Services & Advice Promoting
Market Buying and
Information Wholesaler Assortment Building
Functions
Risk Bearing Bulk Breaking
Financing Warehousing
Transporting
1/3/2013 72

73. Wholesaling Functions
• Selling and promoting—sales • Transportation—provide quicker
delivery to buyers because they are
force help manufacturers
closer to the buyers
reach many small business
• Financing—grant credit, and
customers at a relatively low
finance suppliers by ordering early
cost and paying bills on time
• Buying and assortment • Risk bearing—absorb some risk by
building—select items and taking title and bearing cost of
build the assortment their theft, damage, spoilage, and
customers need obsolescence
• Bulk breaking—buy large • Market information—supply
carload lots and breaking the competitor activities, new products,
price developments, etc
bulk into smaller units
• Management services and
• Warehousing—hold counseling—training sales clerks,
inventories, and reduce helping with store layouts and
inventory costs and risks to displays, etc.
suppliers and customers

74. Wholesalers’ Marketing Decisions
Target market
Product assortment
Price
Promotion
Place
74

75. Manufacturer’s Sales Branches
 Separate business that producers set up away
from their factories to handle wholesaling
functions.
 Represent only about 4.3 percent of all
wholesalers
 Handle 28.4 percent of total wholesale sales
– Sales high because they are placed in best
markets
 True operating costs may be difficult to
determine

76. Types of Wholesalers

77. U.S. Wholesale Trade by Type of Wholesale Operation

78. Major Wholesaler Types
Merchant
Full-service
Limited-service
Brokers and agents
Manufacturers
Specialized
78

79. Merchant Wholesalers
 Take title to (own) the products they sell
 About 88.3% of wholesalers are merchant
wholesalers
 Handle about 61.2% of total wholesale sales
 Two basic types:
– Full-service wholesalers
– Limited-function wholesalers

80. Full-Service Merchant Wholesalers
 Provide all of the wholesaling functions
 Three major types:
– General merchandise wholesalers
– Single-line (or general-line) wholesalers
– Specialty wholesalers

81. Some Limited-Function Merchant Wholesalers
 Cash and carry wholesalers—operates like
service customers except must pay cash
 Drop-shippers—take title to products they
sell but do not stock or deliver them
 Truck wholesalers—typically deliver
perishable items
 Rack jobbers—usually display products on
their own racks
 Catalog wholesalers—sell out of catalogs

82. Agent Middlemen Are Strong on Selling
Manufacturer’s
Brokers
Agents
Types of
Agent
Middlemen
Auction
Companies Selling Agents

83. Manufacturers’ Agents
 Sell similar products for several
noncompeting producers
 Work on a commission basis
 Basically are independent, aggressive sales
reps
 Especially helpful to small producers and
producers whose customers are very spread
out

84. Brokers
 Main purpose is to bring buyers and sellers
together
 Usually have a temporary relationship with
buyer and seller while the deal is negotiated
 Earn a commission—from either the buyer or
seller—depending on who hired them
 Especially common with seasonal products
and products sold infrequently

85. Agent Middlemen
 Wholesalers who do not own the products
they sell
 Main purpose is to help with buying and
selling
 Usually operate at relatively low cost
 Usually provide fewer functions than
merchant wholesalers
 Often specialize not only by product-type,
but also by customer type

86. Trends in Wholesaling
 Fewer, but larger, wholesalers
 Use of computers to control inventory, order
processing
 Closer relationships with customers
 More selective in picking customers

87. Market Logistics Planning
• Deciding on the company’s value proposition
to its customers
• Deciding on the best channel design and
network strategy
• Developing operational excellence
• Implementing the solution

88. What are Integrated Logistics Systems?
An integrated logistics system (ILS)
includes materials management, material
flow systems, and physical
distribution, aided by information
technology.

89. Market Logistics
• Sales forecasting • In-plant warehousing
• Distribution scheduling • Shipping-room
• Production plans processing
• Finished-goods • Outbound
inventory decisions transportation
• Packaging • Field warehousing
• Customer delivery and
servicing

90. Logistics Systems
Costs Order Processing
Minimize Costs of Submitted
Attaining Logistics Processed
Objectives Shipped
Logistics
Functions
Transportation Warehousing
Water, Truck, Storage
Rail, Distribution
Pipeline & Air
Inventory
When to order
How much to order
Just-in-time
1/3/2013 90

91. 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
1/3/2013 91

92. Market Logistics Decisions
• How should orders be
handled?
• Where should stock be
located?
• How much stock should
be held?
• How should goods be
shipped?
92

93. Determining Optimal Order Quantity
93

94. Transportation Factors
• Speed
• Frequency
• Dependability
• Capability
• Availability
• Traceability
• Cost
94

95. Transportation Modes
Rail Piggyback
Nation’s largest carrier, cost-effective
for shipping bulk products
Truck Fishyback
Flexible in routing & time schedules, efficient
for short-hauls of high value goods
Water Trainship
Low cost for shipping bulky, low-value
goods, slowest form
Pipeline
Ship petroleum, natural gas, and chemicals
from sources to markets
Air Airtruck
High cost, ideal when speed is needed or to
ship high-value, low-bulk items
1/3/2013 95

96. Containerization
96

97. Market Logistics
– Organizational Lessons
• Companies should appoint a senior vice president
of logistics to be the single point of contact for all
logistical elements
• The senior vice president of logistics should hold
periodic meetings with sales and operations people
to review inventory, etc.
• New software and systems are the key to achieving
competitively superior logistics performance in the f
97

98. Marketing Debate
Should National Brand Manufacturers
also supply Private Brand Labels?
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99. Marketing Discussion
Think of your favourite stores.
What do they do that encourages your loyalty?
What do you like about the in-store experience?
What further improvements could they make?
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100. Reference
• Kotler, Kelly, Koshy and Jha (2009) Marketing Management: A South
Asian Perspective, 14th ed. Pearson Prentice Hall, pp.400-53