Distributionssystem Marketing channels Petra Andersson

Marketing channels - definitioner ,,,”a set of interdependent organizations involved in the process of making a product or service available for use or consumption.” (Coughlan et al. (2006). p2) ,,,” an organized network (system) of agencies and institutions which, in combination, performs all the activities required to link producers with users to accomplish the marketing task.” (Berman. (1996). p5)

Distributionskanal Utgörs av ett antal mellanled som agerar mer eller mindre beroende av varandra - med målsättningar och förväntningar som kan stå i konflikt med varandra Syftet med en kanal är att tillhandahålla slutkund en önskad kombination av det utbud man presterar (avseende sändningskvantitet, ledtid, tillgänglighet, pris) Slutkunder påverkar distributionsstrukturen/ kanalens utseende genom sin efterfrågan

Beskrivning av ett distributionssystem Noder och länkar Antal nivåer Beslutspunkter Produktegenskaper (volym, vikt, densitet, ömtålighet, värde/vikt) Tidskrav

Distributionssystemets utmaning Rutinisera transaktioner/utbyten Reducera antalet transaktioner/kontakter Reducera kostnader  Bibehålla servicenivåer

Number of Channel Levels Channel Level - Each Layer of Marketing Intermediaries that Perform Some Work in Bringing the Product and its Ownership Closer to the Final Buyer. M C Direct Channel M R C Indirect Channel M W R C M W W C R

How a How a Marketing Intermediary Reduces the Number of Channel Transactions

Selling Directly

Selling Through One Wholesaler

Selling Through Two Wholesalers Manufacturers 28 Contact Lines Wholesalers Retailers

Marketing Channel Functions These Functions Should be Assigned to the Channel Member Who Can Perform Them Most Efficiently and Effectively to Provide Satisfactory Assortments of Goods and Services to Target Customers. Risk Taking Information Promotion Financing Contact Physical Distribution Negotiation Matching

Members in the marketing channel Manufacturers – branded or private-label Intermediaries – for instance wholesalers, retailers and 3PL End-Users – business customers or individual consumers

Wholesalers (Coughlan et al. (2006). p436) “business establishments that do not sell products to a significant degree to ultimate household consumers. Instead, these businesses sell products to other businesses” (Coughlan et al. (2006). p436) “involves the buying or handling of merchandise and its subsequent resale to organizational users, retailers, and/or other wholesalers but not the sale of significant volume to final consumers.” (Berman. (1996). p147) Page 436

Retailing “Retailing consists of the activities involved in selling goods and services to ultimate consumers for personal consumption.” (Coughlan et al. (2006). p377) “Retailing consists of those business activities involved in the sale of goods and services to consumers for personal, family, or household use”. (Berman. (1996). p8)

The generic flows Physical possession Ownership Promotion Negotiation Financing Risking Ordering Payment Se på två ställe

Marketing flows in the channel

Mellanhänder – vem göra vad? med/utan bearbetning/vidareförädling med/utan lagerhållning (kundspecifikt) Ägandenyttan övergår/övergår inte (VMI) Begränsat/fullt sortiment

Funktioner i distributionskanaler Utförs av tillverkare mellanhand kund Kundbearbetning Information/order Sortiment-bredd/djup ”rumslig bekvämlighet”-show room/butik/one-stop-shopping Transport/break bulk Lagerhållning Materialhantering Kreditgivning/riskbärande Överföring av ägandenytta Produktbearbetning/vidareförädling Kundkontakt/returer/garantiåtagande

Spekulation - Postponement Spekulation - i förväg bedöma efterfrågan och lagra produkter för att skapa tillgänglighet (tillverkning mot lager) Postponement eller senareläggning av aktiviteter. (tillverkning mot kundorder) 2 huvudtyper: Senarelagd differentiering/anpassning Geografisk senareläggning

Postponement – senarelagd differentiering Utformning av produkter i oberoende moduler, vilka kan monteras och kombineras till olika varianter/produkter Utformning av tillverkningsprocessen/ tjänsteprocessen så att den består av delprocesser som kan omformas i tid och rum Lokalisering av noder (tillverkningsställen/ monteringsställen/lager) för att understödja att differentieringen kan göras inom rimlig ledtid

Värdeadderande distributörer halvfabrikat/köpkomponenter lagerhålls av distributör på lokal marknad Efter kundorder färdigställs kundspecifika produktvarianter -> formnytta och variantskaparroll

Exempel på värdeadderande verksamhet Enklare montage Komplettering med tillbehör Blandning Satsning Sortering Sekvensläggning Justering/konfigurering Packning Märkning/etikettering

Drivkrafter bakom (lokala) värdeadderande distributörer Marknadskrav på fler produktvarianter/kundspecifika produkter Minimera risker (kapitalbindning/inkurans) Reducera kostnader Korta leveranstider – anpassning görs lokalt närmare marknaden istället för hos avlägsna produkttillverkare

Definition of customer service ,,,a process which takes place between the buyer and seller, and third party. The process results in a value added to the product or service exchanged. ,,, (Lambert et al. (1998). P41)

Elements of customer service Pre-transaction elements Written statement of policy Customer receives policy statement Organizational structure System flexibility Management services Transaction elements Stockout level Order information Elements of order cycle Expedite shipments Transship System accuracy Order convenience Product substitution Post-transaction elements Installation, warranty, alterations, repairs, parts Product tracing Customer claims, complaints, returns Temporary replacement of products

Mätning av leveransservice/prestation Vilka leveransservicemått är viktiga? Hur definieras de? Gemensam definition i distributionskanalen? Hur operationaliseras de – hur mäts de? Skillnader? Fångar leveransservicemåtten kundens upplevelse av service? Vilka gap finns? (Jfr gapmodell)

Gap modell

Electronic channels A channel that involves the usage of Internet as a tool in reaching the end-user or a channel where the end-user shops on-line

Product supply Creation of catalogue Register of customers Utmaningar – e-handel Product supply Creation of catalogue Register of customers Order and transport Stock balance Returned goods

Distributionsystem - Logistikaktiviteter Transporter Lagerlokalisering Lagerstyrning Process Partiformning Säkerhetslager Variationer Materialhantering Kommunikation - information

Bullwip The further back in the supply chain you are, the more pronounced is the effect! +40% +28% +16% +25% +10% 0% -10% 10 months Retailers orders from customers Distributors orders from retailers Factory warehouse orders from distributors Factory production output

Phases of relationships

- early interaction is important Expansion Managing the phases Awareness -don't rush Exploration - early interaction is important Expansion - both sides need to share risks and benefits Commitment - maintain the relationship Decline and Dissolution

Cooperate and Integrate, why? Improve a company’s performance Reducing costs Increased service levels Reduce inventory levels Better utilization of resources Effectively respond to changes in the marketplace

Basics in cooperation Commitment Work towards the same goal Resistance towards temporary businesses Trust “the firm’s belief that another company will perform actions that will result in positive outcomes for the firm, as well as not take actions that would result in negative outcome for the firm” (Anderson and Naurus. (1990))

Commitment – dyad perspektiv

Signs of commitment in the channel

Vertical Integration To become one, both up- and down-stream in the supply chain Make or buy; Strategically important choices to be taken in the marketing channel

Disadvantages and advantages of vertical integration Costs Risks Outside core business Advantages Control Improvements Profit

Channel Power “the ability of one channel member to induce another channel member to change its behavior in favor of the objectives in the channel exerting influence” (Gaski. (1984)) Power is the ability of one channel member (A) to get another channel member (B) to do something it otherwise would have not done. (Coughlan et al. (2006). p197)

Sources of power Coercive power – tvingande makt, kanalmedlem har möjlighet att straffa en annan medlem Icke tvingande makt: 2. Reward power – belöning/premiera “promise strat” 3. Referent power – overall image 4. Expertise power – besitter kunskap 5. Persuasier power – övertalning/övertygelse/rationella t ex storlek/finansiell pos. 6. Legitimate power – ägande – vertikal integration 7. Information power - POS-data t ex värdefull

Conflict (Stern and El-Ansay.(1992)) ” A situation in which one channel member perceives another channel member to be engaged in behavior that is preventing or impeding him from achieving his goals.” (Stern and El-Ansay.(1992)) Channel conflict is behavior by a channel member that is in opposition to its channel counterparts. It is opponent centered and direct, in which the goal or object sought is controlled by the counterpart. (Coughlan et al. (2006). P244)

Positive consequences of conflict Communicate more frequently and effectively Establish outlets for expressing their grievances Critically reviewing their past actions Devise and implement a more equitable split of system resources Develop a more balanced distribution of power in their relationship Develop standardized ways to deal with future conflict and keep it within bounds

One definition of Supply Chain Management The management of upstream and downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole. (Christopher. (2005). P5 Reflektion - Superior customer value – indikerar Demand driven ändå används SUPPLY CHAIN MANAGEMENT )

Another definition of Supply Chain Management Supply chain management is the integration of business processes from end user through original suppliers that provides products, services, and information that add value for the customers. (Lambert et al. (1998). P504)

Supply Chain Management A concept that argues that customer service is created through the value-adding activities of all channel members Requires: end-user focus effective channel management effective logistics