Basic Marketing – Chapter 12 Supplementary Power. Point Archive This is an archive of photos and exhibits from the text and additional graphics and exhibits as referenced in the Basic Marketing Multimedia Lecture Guides. See the Basic Marketing Multimedia Lecture Support Package for additional detail and teaching suggestions. For use only with Perreault/Cannon/Mc. Carthy. These images may not be redistributed or used for any other purpose without permission of the publisher, Mc. Graw. Hill/Irwin, The Mc. Graw-Hill Companies, Inc. Mc. Graw-Hill/Irwin Copyright © 2011 by The Mc. Graw-Hill Companies, Inc. All rights reserved.
12 -2 Coke opening photo
12 -3 Exhibit 12 -1: The Role of Logistics and Physical Distribution Customer Service Marketing Strategy
12 -4 NAPA ad
12 -5 UPS ad
12 -6 Exhibit 12 -2: Trade-Offs among Physical Distribution Costs, Customer Service Level, and Sales
Exhibit 12 -3: Examples of Factors that Affect PD Service Level 12 -7
12 -8 Sauder ad
12 -9 Best Software ad
12 -10 Manitowoc photo
12 -11 MARSH ad
12 -12 MARSH ad
12 -13 Transporting costs of pharmaceuticals and aluminum photos
12 -14 Transporting costs of pharmaceuticals and aluminum photos
12 -15 Transporting costs of pharmaceuticals and aluminum photos
12 -16 Miller Beer in China photo
12 -17 Trade Association for Oil and Natural Gas ad
12 -18 Containers on ship photo
12 -19 Metro India website
12 -20 Menasha ad
12 -21 Smart. Way ad
Exhibit 12 -7: Many Expenses Contribute to Total Inventory Cost 12 -22
12 -23 Exhibit 12 -8: A Comparison of Private Warehouses and Public Warehouses
Finger scanner from Frog Design using Bluetooth wireless technology photo 12 -24
12 -25 http: //www. Zappos. com website
12 -26 Coca Cola delivery truck photo
Logistics and Physical Distribution Customer Service 12 -27 § The transporting, storing, and handling of goods to match target customers' needs with a firm's marketing mix § Both within individual firms and along a channel of distribution (or supply chain) § Customers think of physical distribution in terms of the customer service level § how rapidly and dependably a firm can deliver what customers want § There are trade-offs among physical distribution costs, customer service levels, and sales
12 -28 Great Plains Software ad
12 -29 Factors that Affect Customer Service Level Order processing speed Inventory on hand to meet demand Factors that affect customer service level Transportation mode used Damage or loss during shipping Information to help plan exactly when product will arrive
12 -30 Physical Distribution Concept § All transporting, storing, and product-handling activities of a business and a whole channel system should be coordinated as one system to: § minimize the costs of distribution § for a given customer service level § Simply focusing on individual costs may increase total costs —since a total system is involved § Requires that the manager decide what aspects of service are most important to customers § Examples: order delivery time § availability of products § order status information
Using Technology to Coordinate PD Activities Among Firms 12 -31 § Just-in-time delivery (reliably getting products there just before the customer needs them) requires close coordination and information flows § reduces handling costs § reduces storing costs § shifts greater responsibility to the supplier § a small problem can cause big ripple effects! § Electronic data interchange (EDI) puts information in a standardized format easily shared between different computer systems § Coordination may expand beyond buyers and sellers to involve a whole network of firms § a supply chain is a complete set of firms and facilities and logistics activities that are involved in procuring materials, transforming them into intermediate and finished products, and distributing them to customers
12 -32 DHL International ad
12 -33 Transporting § Marketing function of moving goods § Helps facilitate economies of scale in producing goods § Produce in large quantities where it is inexpensive to produce, and then ship products to customers § Shipping costs increase delivered cost § Five major modes of transportation § Rail § Truck § Water § Pipelines § Airways
12 -34 Philips’ monitors on tricycle in China photo
12 -35 Copexeu AA Cargo ads
12 -36 Containers on ship photo
12 -37 Tide ad
12 -38 The Storing Function § The marketing function of holding goods so they’re available when they’re needed § Inventory is the amount of goods being stored § Goods are stored at a cost
12 -39 Woman shopping at Costco photo
12 -40 Paxar Americas ad
12 -41 Distribution Center § Special kind of warehouse designed to speed the flow of goods and avoid unnecessary storing costs § Speeds bulk-breaking to reduce inventory carrying costs § Helps to centralize control and coordination of physical distribution activities § Products may immediately move (cross-dock) from a truck or train at an incoming loading dock to an outgoing loading dock.
12 -42 A Cost Comparison of Alternative Systems (Exhibit 12 -4)
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