While yesterday’s supply chains were focused on the availability, movement and cost of physical assets, today’s supply chains are about the management of data, services and products bundled into solutions. Modern supply chain management systems are about much more than just where and when. Supply chain management affects product and service quality, delivery, costs, customer experience and ultimately, profitability. Show
As recently as 2017, a typical supply chain accessed 50 times more data than just five years earlier. However, less than a quarter of this data is being analyzed. That means the value of critical, time-sensitive data — such as information about weather, sudden labor shortages, political unrest and microbursts in demand — can be lost. Modern supply chains take advantage of massive amounts of data generated by the chain process and are curated by analytical experts and data scientists. Future supply chain leaders and the Enterprise Resource Planning (ERP) systems they manage will likely focus on optimizing the usefulness of this data — analyzing it in real time with minimal latency. Advertising - A paid form of communication and promotion involving a product and its attributes.
Agent - An intermediary who does not take title to merchandise but facilitates exchanges by bringing buyers and sellers together.
Brand - An identification (name, symbol, etc.) of a product that is unique and distinguishable from competitor’s products.
Channel of distribution - A product’s trip from producer or manufacturer to the buyer.
Coupon - A certificate that entitles a consumer to a price reduction or a cash refund. Demand - A schedule of the amount of a product that will be purchased at various prices.
Discount - A deduction from the list price in the form of cash or something else of value.
Forecasting - To predict the quantity of a product that will be sold at various times in the future.
Income - Money received in return for labor or services provided, sale of assets and return on investments.
Intermediary - An independent or corporate-owned business that helps move products from the producer to the ultimate consumer.
Label - A tag or part of a package that provides information about a product.
Market - A group of individuals with unsatisfied wants and needs who are willing and able buyers. It can be defined as narrowly as a specific place where buying and selling takes place or as broadly as the demand for a product.
Marketing research - A systematic and objective approach to developing and providing information for decision making regarding a specific marketing problem.
Marketing strategy - Marketing approach or method used to achieve a marketing goal.
Packaging - Designing and producing the container or wrapper for a product. Personal selling - Person-to-person communication in which the receiver provides immediate feedback on the source’s message. Purchasing - To obtain a product in exchange for money or its equivalent.
Price - The amount of money asked in exchange for something else (e.g. product).
Price fixing - When several firms in an industry collectively establish the price for a product.
Pricing strategies (market based) -- Approaches to setting prices based on the willingness of the buyer to purchase the product.
Pricing strategies (cost based) - Approaches to setting prices based on the cost of producing the product.
Pricing strategies (geography based) - Approaches to setting price based on the location and transportation costs associated with delivering the product to the buyer.
Product - Something produced that is sold to willing buyers.
Product distribution - The process of providing a product when and where it is desired by the consumer.
Promotion - Providing and communicating favorable information about a product to potential buyers.
Quality control - The traditional approach to quality in which problems are detected after manufacturing and an effort is made to remove sub-standard products before shipping to customers. Retailing - All activities used to sell products to ultimate consumers.
Selling - Assisting or persuading a prospective customer to buy a product.
Transaction - An exchange between two or more parties. Value proposition - How a product will provide value to its customers. Why a product will provide sufficient value to its customers to be worth its price. Wholesaling - All of the activities involved in selling products to retailers: to industrial, institutional, farm and professional businesses; or to other types of wholesaling intermediaries.
Don Hofstrand, retired extension value added agriculture specialist, Is the process of making a product or service available for use or consumption?A marketing channel consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users. In a marketing channel, finished goods are moved from the producer, through intermediaries, to the buyers.
Is a set of firms and actions to create and deliver a product service to consumers industrial users?A supply chain is a network of individuals and companies who are involved in creating a product and delivering it to the consumer.
Which type of utility is created when a company makes products available where consumers want them?Place utility involves making products or services available in locations that allow consumers to easily access them.
What is customer service output?Service outputs are the productive outputs of the marketing channel that consumers value and desire. By identifying the service outputs for each segment of target buyers, the marketer can optimize the distribution strategy for each major segment.
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