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Slide2.1Harrison,vanHoekandSkipworth,LogisticsManagementandStrategyPowerPointsontheWeb,5thedition,©AlanHarrison,RemkovanHoekandHeatherSkipworth2015Chapter2Puttingtheend-customerfirstSlide2.2Harrison,vanHoekandSkipworth,LogisticsManagementandStrategyPowerPointsontheWeb,5thedition,©AlanHarrison,RemkovanHoekandHeatherSkipworth2015TheMarketingPerspective•Amorecurrentdefinition:Marketingistheactivity,setofinstitutions,andprocessesforcreating,communicating,delivering,andexchangingofferingsthathavevalueforcustomers,clients,partners,andsocietyatlarge.(AmericanMarketingAssociation,July2013)SupplychainmarketingSlide2.3Harrison,vanHoekandSkipworth,LogisticsManagementandStrategyPowerPointsontheWeb,5thedition,©AlanHarrison,RemkovanHoekandHeatherSkipworth2015RisingcustomerexpectationDueto:•Betterlevelsofgeneraleducation•Betterabilitytodiscernbetweenalternativeproducts•ExposuretomorelifestyleissuesinthemediaSlide2.4Harrison,vanHoekandSkipworth,LogisticsManagementandStrategyPowerPointsontheWeb,5thedition,©AlanHarrison,RemkovanHoekandHeatherSkipworth2015Theinformationrevolution•B2C•B2B•Othersupplychainimplications(inventory,forecasts,useofassetsetc.)DemandledRespondmorerapidlytomarketsrequirementsSlide2.5Harrison,vanHoekandSkipworth,LogisticsManagementandStrategyPowerPointsontheWeb,5thedition,©AlanHarrison,RemkovanHoekandHeatherSkipworth2015SegmentationSegmentationdescribeshowagivenmarketmightbebrokenupintodifferentgroupsofcustomerswithsimilarneeds.Itmeansdescribingthemarketassimplyaspossiblewhilstdoingourbesttoemphasiseitsvariety.(MillierandPalmer,2000)Slide2.6Harrison,vanHoekandSkipworth,LogisticsManagementandStrategyPowerPointsontheWeb,5thedition,©AlanHarrison,RemkovanHoekandHeatherSkipworth2015MarketsegmentationBeginswith:•thebenefitswanted•thepriceconsumersarepreparedtopay•themediatowhichtheyareexposed•theamountandtimingoftheirpurchases(ex.forsuncreencreamandlotion)Slide2.7Harrison,vanHoekandSkipworth,LogisticsManagementandStrategyPowerPointsontheWeb,5thedition,©AlanHarrison,RemkovanHoekandHeatherSkipworth2015Manywaysformarketsegmentation•Demographic•Geographic•Technical•Behavioural(forconveniencestores:Main,top-up,impulse,distress,grab-and-go,habitualshoppers)(FinneandSivonen,2009)Slide2.8Harrison,vanHoekandSkipworth,LogisticsManagementandStrategyPowerPointsontheWeb,5thedition,©AlanHarrison,RemkovanHoekandHeatherSkipworth2015Importantcharacteristicsofsegments•measurable•economicallyviable•accessible•actionableRefertoFigure2.1Slide2.9Harrison,vanHoekandSkipworth,LogisticsManagementandStrategyPowerPointsontheWeb,5thedition,©AlanHarrison,RemkovanHoekandHeatherSkipworth2015Aftersegmentation,selecttargetsegmentsanddefinedifferentialadvantages•Orderwinningcriteria(OWC)•Qualifyingcriteria(QC)Definemarketingmix(4Ps)•product•price•promotion•placeSlide2.10Harrison,vanHoekandSkipworth,LogisticsManagementandStrategyPowerPointsontheWeb,5thedition,©AlanHarrison,RemkovanHoekandHeatherSkipworth2015Casestudy2.1(P.46)•GroupdiscussionSlide2.11Harrison,vanHoekandSkipworth,LogisticsManagementandStrategyPowerPointsontheWeb,5thedition,©AlanHarrison,RemkovanHoekandHeatherSkipworth2015Marketssegmentationandsupplychainstrategy•Productandservicesegmentation•Demographicsegmentation•Geography•ChannelCasestudy2.2(P.49)Slide2.12Harrison,vanHoekandSkipworth,LogisticsManagementandStrategyPowerPointsontheWeb,5thedition,©AlanHarrison,RemkovanHoekandHeatherSkipworth2015Demandprofiling•Marketing--abstract•Logistics--day-to-dayrealitiesSlide2.13Harrison,vanHoekandSkipworth,LogisticsManagementandStrategyPowerPointsontheWeb,5thedition,©AlanHarrison,RemkovanHoekandHeatherSkipworth2015DemanduncertaintySlide2.14Harrison,vanHoekandSkipworth,LogisticsManagementandStrategyPowerPointsontheWeb,5thedition,©AlanHarrison,RemkovanHoekandHeatherSkipworth2015ActualdemandandforecastSlide2.15Harrison,vanHoekandSkipworth,LogisticsManagementandStrategyPowerPointsontheWeb,5thedition,©AlanHarrison,RemkovanHoekandHeatherSkipworth2015Servicequality•GapsSlide2.16Harrison,vanHoekandSkipworth,LogisticsManagementandStrategyPowerPointsontheWeb,5thedition,©AlanHarrison,RemkovanHoekandHeatherSkipworth2015CustomerloyaltysatisfactionBenefits:•generatelong-termrevenuestreams•tendtobuymorethannewcustomers•tendtoincreasespendingovertime•maybewillingtopaypremiumprices•providecostsavingscomparedwithattractingnewcustomersloyaltySlide2.17Harrison,vanHoekandSkipworth,LogisticsManagementandStrategyPowerPointsontheWeb,5thedition,©AlanHarrison,RemkovanHoekandHeatherSkipworth2015KeydriversofcustomerloyaltyServicequalityPerceivedvaluePriceProductqualityCustomerloyaltyFigure2.5Slide2.18Harrison,vanHoekandSkipworth,LogisticsManagementandStrategyPowerPointsontheWeb,5thedition,©AlanHarrison,RemkovanHoekandHeatherSkipworth2015Figure2.8MatchingsupplychainswithproductsSource:Fisher,1997SegmentedsupplychainstrategyDoyouagree?Anyproblems?Slide2.19Harrison,vanHoekandSkipworth,LogisticsManagementandStrategyPowerPointsontheWeb,5thedition,©AlanHarrison,RemkovanHoekandHeatherSkipworth2015So,howtodevelopsegmentedsu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