1、Chapter 2 Putting the end-customer first,Content,Key issue,The marketing perspective,Marketing is a philosophy that integrates the disparate activities and functions that take place within the network. Satisfied end customers are seen as the only source of profit, growth and security. (Doyle,1994),T
2、he marketing perspective,The Challenge,The marketing perspective,The marketing perspective,Two pairs of concepts,The marketing perspective,B2B,B2B,B2B,B2C,Rising customers expectation,The marketing perspective,The information revolution,The marketing perspective,Content,Key issue,Segmentation,Market
3、 can be segmented in many ways Demographic: such as age, gender and education Geographic: such as urban vs. country, types of house and region Technical: the use that customers are going to make of a product Behavioral: such as spending pattern and frequency of purchase,Segmentation,A powerful way t
4、o bridge marketing and logistics,Miller case,Segmentation,Beer market consumer,Light drinker,Heavy drinker,Consumption 1:8,Blue-collar Over 30 years of age Spend long time on watching TV per day Sporting.,female High level income,Fragmentation of Markets and Product Variety Are the requirements of a
5、ll market segments served identical? Are the characteristics of all products identical? Can a single supply chain structure be used for all products / customers? No! A single supply chain will fail different customers on efficiency or responsiveness or both.,Segmentation,Activity 1 Try to compare th
6、e segmentation strategies between Dell and Lenovo in computer market. What logistics strategy should Dell make to fit its market segmentation? So what about Lenovo?,Segmentation,Segmentation,functional,innovative,efficient,responsive,Dell,Lenovo,Content,Key issues,Quality of service,Quality of servi
7、ce,Case: Service of a seafood restaurant,Quality of service,Service is the combination of outcomes and experiences delivered to and received by the end-customer (Johnston and Clark, 2001).,Customer loyaltyCustomer satisfaction Value disciplines Operational excellence Product leadership Customer inti
8、macy Customer relationship management Bow tie Diamond,Quality of service,supplier,customer,supplier,customer,？,Content,Key issues,Setting logistics priorities,Setting logistics priorities,Identify the order winners and qualifiers according to customer needs by market segment,Priority order winners f
9、or each segment,Identify gaps in existing logistics capabilities: reinforce strengths and plug weaknesses,Using market segments to set logistics priorities,Zara case,Flag brand of a Spanish apparel manufacturer and retailer group-Inditex,Produce and sell the most fashioned apparel, target core is fe
10、male of 18-35 years.,The first shop of Zara was built in 1975.,Own loyal customers, regular buyers visit 17 times per year.,Rivals of Zara: Gap(USA), Mango(Eupope), Benetton(Italy),Product style Agile design, not pilot design Employ many cool hunters Production system 50% production at headquarters,
11、 20% imported from low-cost countries (Asia), 30% in other region of Spain or Europe Spare production capacity: production is always lower than forecasted sales Global sourcing cloth materials. Half of materials are naturally colored, and then dyed and painted in a subsidiary of Inditex. This cycle
12、only spends about one week. Zaras production system only covers the elements with scale economy, such as dyeing, cutting, labeling, and packing. The processes of labor-intensive are usually operated by hundreds of sub-contractors.,Logistics Receiving orders with a high frequency and small volume, sh
13、op managers keep direct contact with headquarters. Each delivery runs within 48 hours. Goods are transported by land-carriage (less than 24 hrs) or by air (more than 24 hrs). Two distribution centers are located in Spain. All items are labeled and priced at distribution center, and then delivered by third-party logistics firms.,
