Chapter 15
Supply Chain and Channel Management
Tools For Instructors
Brief Chapter Outline
Learning Objectives
Extended Chapter Outline with Teaching Tips
PowerPoint Slides with Teaching Notes
Additional Teaching Tips
Brief Chapter Outline
The Importance of Marketing Channel/Supply Chain Management
Designing Marketing Channels
Connect Learning Aids
Learning Objectives
LO 15-1 Understand the importance of marketing channels and supply chain management.
Marketing channels allow companies to get their products in the appropriate outlets in sufficient
Without the members in a marketing channel, consumers would be forced to find raw materials,
manufacture products, and somehow get them to where they could be used, all on their own.
and transportation, advertising, and marketing.
LO 15-2 Understand the difference between direct and indirect marketing channels.
There are ways by which businesses get their goods to consumers. Using a direct marketing
channel, a customer can purchase goods from the manufacturer without needing to go through a
strategy.
LO 15-3 Describe how marketing channels are managed.
The more closely aligned the marketing channel members are with each other, the less likely
there will be significant conflict. An administered marketing channel occurs when a dominant
compatible goals, realize there is benefit in being interdependent, and be willing to invest in each
other’s success.
LO 15-4 Describe the flow of information and merchandise in the marketing channel.
Information flow involves: Flow 1 (customer to store), Flow 2 (store to buyer), Flow 3 (buyer to
(distribution centers to stores, when shipped first to distribution centers), and Flow 4 (retailer to
customer).
Extended Chapter Outline With Teaching Tips
I. The Importance of Marketing Channel/Supply Chain Management (PPT slide 15-4,
5)
A. Marketing Channels Add Value (PPT slide 15-7, 8)
15-9)
II. Designing Marketing Channels (PPT slide 15-10)
A Direct Marketing Channel
III. Managing the Marketing Channel and Supply Chain (PPT slide 15-11)
A Managing Supply Chains through Vertical Marketing Systems (PPT slide 15-12)
8 Credible Commitments
Check Yourself: Several questions are offered for students to check their understanding of core
concepts. (PPT slide 15-17)
1. What are the differences between an indirect and a direct marketing channel?
Answer: There are no intermediaries between the buyer and seller in a direct marketing
2. What are the differences among the three types of vertical marketing systems?
Answer: In an administered vertical marketing system, there is no common ownership or
marketing channel because it owns multiple segments of the channel, such as
manufacturing plants, warehouse facilities, and retail outlets.
3. How do firms develop strong strategic partnerships with their marketing channel
partners?
II Making Information Flow through Marketing Channels (PPT slide 15-18)
A Electronic Data Interchange (PPT slide 15-19)
Check Yourself: Several questions are offered for students to check their understanding of core
concepts. (PPT slide 15-22)
1. What are the marketing channel links associated with each information flow?
Answer: The supply chain links associated with each information flow step are Flow 1
2. How do marketing channel members use data warehouses to make decisions?
Answer: As shown on the horizontal axis, data can be accessed according to the level of
merchandise aggregation—SKU (item), vendor, category (e.g., dresses), or all
3. What is EDI and how is it used?
4. Why do some marketing channels use VMI, while others do not?
Answer: Although it is a more advanced level of collaboration than simply using EDI and
the retailer is taking that might affect the sales of its products in the future.
IV. Making Merchandise Flow through Marketing Channels (PPT slide 15-23)
A Distribution Centers versus Direct Store Delivery (PPT slide 15-26)
1 Reduced Lead Time
Check Yourself: Several questions are offered for students to check their understanding of core
concepts. (PPT slide 15-35)
1. How does merchandise flow through a typical supply chain?
2. Why have just-in-time supply chain systems become so popular?