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PowerPoint Slides With Teaching Notes
PowerPoint Slide Teaching Notes
15-1: Supply Chain and Channel
Management
15-2: Supply Chain and Channel
Management
These questions are the learning objectives
guiding the chapter and will be explored in more
detail in the following slides.
15-3: Amazon Ask students: How has Amazon aligned its
systems?
The opening vignette describes distribution
efficiencies through technology innovations.
15-4: The Importance of Marketing
Channel/ Supply Chain
Management
Students of marketing often overlook or
underestimate the importance of place in the
marketing mix, simply because it happens behind
the scenes.
Yet marketing channel management adds value
because it gets the products to them efficiently,
quickly, and at low cost.
15-5: Supply Chain Management Ask students: Why would a supply chain be
more efficient with a distribution center rather
than simply delivering directly to stores?
Answer: The distribution center serves as a place
to accumulate merchandise from many vendors
and then allocate it to stores in the quantities they
need.
Imagine the congestion if every vendor had to
deliver to every store.
15-6: Behind the Scenes at Costco This clip looks behind the scenes at Costco and
evaluates their supply chain and approach to
logistics.
Note: Please make sure that the video file is
located in the same folder as the PowerPoint
slides.
15-7: Marketing Channels Add Value Without supply chain management, firms would
face significant complications in getting their
goods to consumers where they want them.
Group activity: Each member of the group
represents a supply chain link (e.g., manufacturer,
retail distribution center, retailer, transporter, end
customer).
Remove one link and attempt to move an object
like a pen from one end to the other. Experiment
with removing different links.
What happens?
15-8: Marketing Channels Add Value Ask students: How does supply chain
management reduce inventory levels? What
effect does supply chain management have on
sales?
Answer: An efficient supply chain can lower
overall inventory in the system because
merchandise is delivered when it is needed
(just-in-time).
By having an efficient supply chain, the retailers
stay in stock, and sales increase.
This is a classic FedEx ad with John Moscitta, the
fast talking guy, which reinforces the importance
of distribution.
15-9: Marketing Channels Management
Affects Other Areas of Marketing
Customers expect to have their goods delivered
and services performed on time.
Ask students: What happens when the supply
chain breaks down? Imagine you order a textbook
from Amazon, which promises to deliver it by
Saturday, before your classes start on Monday.
What happens in terms of your satisfaction with
Amazon if some link in the supply chain breaks
down and you don’t receive your book until
Tuesday?
15-10: Designing Marketing Channels There are no intermediaries between the buyer
and seller in a direct marketing channel.
In indirect marketing channels, one or more
intermediaries work with manufacturers to
provide goods and services to customers.
15-11: Managing the Marketing Channel
and Supply Chain
Managing a supply chain is similar to managing
your personal relationships. When conflict
occurs, it is best to try to come to a resolution
through negotiations:
Group exercise: Divide the class into group
dyads: one a manufacturer and one a retailer.
Make each group have a dominant member. So,
one group would be Walmart (dominant), while
the other group would be a small vendor.
Another group would be P&G (dominant), while
the other group would be a small grocery chain.
Have the groups negotiate a sale.
Then have the groups report what transpired. It
will be interesting to see how the dominant group
used their power.
15-12: Managing the Marketing Channel
and Supply Chain through Vertical
Marketing Systems
Control in a supply chain varies depending on the
type of relationships.
You might compare supply chain relationships to
more personal relationships familiar to students,
such as a group of their friends versus a
professional networking association to which
they belong.
Ask students: How does the formality of your
relationships in each group affect your influence
over other members or other members’ influence
over you?
The more formal the relationship, the more
control one member has over the others.
15-13: Types of Vertical Marketing
Systems
Group exercise continued: Have students
describe which type of supply chain channel they
are in.
Explain how cooperation is fostered through
more formal supply chain relationships.
In essence, cooperation is naturally greater in a
corporate system than in an independent supply
chain.
15-14: Power Power in a marketing channel exists when one
firm has the means or ability to dictate the actions
of another member at a different level of
distribution.
15-15: Managing Marketing Channels
and Supply Chains through
Strategic Relationships
Continue with the personal example developed
above.
Explain how, like personal relationships, supply
chain relatioships are stronger when there is
mutual trust, open communication, common
goals, and credible commitments.
Have students provide specific examples.
15-16: Relationship of Supply Chain
Members
The National Milk Processor Board is the
originator of this ad campaign.
It helped fuel growth in consumption due to
increased competition by other drinks.
Increase in milk consumption favors the
processors, the farmers, the distributors, and the
retailers – many members of the supply chain.
