Marketing Channels Delivering Customer Value Chris Beltran Messaline

Marketing Channels Delivering Customer Value Chris Beltran, Messaline Clement, Mireya Gama, Cody Prue

Agenda ¡Chapter 12 Key Ideas ¡Video ¡In-N- Out Comprehensive Model ¡Discussion Questions

The Value Delivery Network

Direct Marketing Channel vs. Conventional Marketing Channel Direct Producer Conventional Producer Wholesaler Consumer Retailer Consumer

Vertical Marketing System ¡In-N-Out: Corporate VMS ¡Ford: Contractual VMS ¡Walmart, Home Depot: Administered VMS Horizontal Marketing System ¡Walmart & Mc. Donalds ¡Taco Bell & Pizza Hut

Multichannel Distribution

Channel Design Decision

Supply Chain Management • Managing upstream and downstream valueadded flows of materials, final goods, and final consumer

Channel Management Decision ¡Selecting Channel Members ¡Managing and motivating channel members ¡Evaluating channel members

Public Policy and Distribution Decisions ¡Exclusive territorial agreements ¡ Producer or seller limit territory ¡Exclusive dealing ¡ Seller requires that the sellers not handle competitor’s products ¡Exclusive distribution ¡ Seller allows only certain outlets to carry its products ¡Tying agreements ¡ Dealer must take most or all of the line

Major Logistics Functions Warehousing Transportation Inventory Management Logistics Information Management ¡ Marketing logistics: ¡ Planning, implementing, and controlling the physical flow of goods and services from points of origin to points of consumption ¡ Transportation ¡ Trucks- 40% ¡ Railroads- 40% ¡ Water carriers- Less than 5% ¡ Air carriers & Pipelines- Less than 1%

Third Party Logistics ¡ 3 PL Supply Chain ¡Defined as a firm that provides service to its customers of outsourced (3 rd Party) logistics as part of their supply chain management functions. ¡Typically specialized in warehousing and transportation that can be catered to customers needs.

Tangible Good

Introduction ¡ Leading fast- food retail chain with over 200 locations in California, Nevada, and Arizona ¡ Private, family- run, non- franchised company ¡ Harry Snyder and his wife, Esther, opened what is said to be California's first drive-thru restaurant. ¡ Known for its made- to –order hamburgers, fresh ingredients and efficient service ¡ Maintained the steady rate of expansion with traditional menu and a simple, customer- friendly philosophy

Distribution ¡Own distribution system ¡ Private butchers, warehouses, truck lines ¡ Must improve system to expand beyond west coast and maintain strategic position

Comprehensive Model of the Marketing Distribution Channel Supplier In-N-Out Distributor Consumer

Discussion Questions ¡Do you believe In-N-Out Burger should remain non franchised or branch out like their competitors? ¡What are the complexities of using international distribution channels?

References ¡http: //extensionengine. com/project-vs-productmanagement/ ¡http: //www. referenceforbusiness. com/history/He-Ja/In. N-Out-Burgers-Inc. html#b ¡http: //partners. visitrenotahoe. com/innoutburger