E-Marketing4/EJudyStrauss,AdelI.El-Ansary,and RaymondFrostChapter12:TheInternetforDistribution1000007001010100111101000010010111010010C2006PrenticeHalln
©2006 Prentice Hall 12-1 E-Marketing 4/E Judy Strauss, Adel I. El-Ansary, and Raymond Frost Chapter 12: The Internet for Distribution
Chapter 12 ObjectivesAfterreadingChapter12youwill be ableto.. Describe the three majorfunctions ofa distributionchannel.Explainhow the Internet is affecting distributionchannellength.Discusstrendsinsupplychainmanagementandpower relationships among channelplayers.Outlinethemajormodelsusedbyonlinechannelmembers.Highlight how companies can use distribution channelmetrics.70070701001111010000100101110100102006PrenticeHa
©2006 Prentice Hall 12-2 Chapter 12 Objectives • After reading Chapter 12 you will be able to: • Describe the three major functions of a distribution channel. • Explain how the Internet is affecting distribution channel length. • Discuss trends in supply chain management and power relationships among channel players. • Outline the major models used by online channel members. • Highlight how companies can use distribution channel metrics
The Dell Story.Dell is the numberone notebookand desktopPCmakerintheworldDellutilizesadirect-distributionmodeltosellabout$4omillionperdayonlineWholesalersandretailersareeliminatedThrough itsdirect channel,Delldirectlymonitors itscustomers'needs.Dellhandles10,000customercommunicationsperday.100700707010011101000010010111010010C2006PrenticeHal
©2006 Prentice Hall 12-3 • Dell is the number one notebook and desktop PC maker in the world. • Dell utilizes a direct-distribution model to sell about $40 million per day online. • Wholesalers and retailers are eliminated. • Through its direct channel, Dell directly monitors its customers’ needs. • Dell handles 10,000 customer communications per day. The Dell Story
The Dell Story, cont.DelloperatesinboththeB2BandB2CenvironmentsMaintains60.000 customWebstorefrontsformajorcorporate buyersAllowsonline customerstobuildtheirown systemsand uses the information to guide new productdevelopment.Dellhasa tightlycoordinated supplychainthatsells in 104 country marketsHaveyou(orhassomeoneyouknow)benefitedfromDell'smass customization strategy?07007.0101001111010000100101110100102006PrenticeHa
©2006 Prentice Hall 12-4 The Dell Story, cont. • Dell operates in both the B2B and B2C environments. • Maintains 60,000 custom Web storefronts for major corporate buyers. • Allows online customers to build their own systems and uses the information to guide new product development. • Dell has a tightly coordinated supply chain that sells in 104 country markets. • Have you (or has someone you know) benefited from Dell’s mass customization strategy?
Distribution Channel OverviewA distribution channelisagroupofinterdependentfirmsthattransferproductandinformationfromthe suppliertotheconsumer·Producers.Intermediaries·BuyersEachchannelmemberperformssomeofthemarketingfunctions10000001000007000700070C2006PrenticeHal
©2006 Prentice Hall 12-5 Distribution Channel Overview • A distribution channel is a group of interdependent firms that transfer product and information from the supplier to the consumer. • Producers • Intermediaries • Buyers • Each channel member performs some of the marketing functions