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Marketing Channels and Logistics: Guinness GB - Essay Example

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MARKETING CHANNELS AND LOGISTICS: GUINNESS GB Instructor Institution Date Introduction Marketing channels refer to the avenues that companies use to enable its products to be availed to the customers or consumers (Banyte, Gudonaviciene and Grubys, 2011, p…
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Marketing Channels and Logistics: Guinness GB
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Download file to see previous pages 108). Within marketing channels, inventory management is a core determinant of effectiveness and efficiency of the flow of information, services and goods. Inventory management is defined as the regulation of a company’s inventory with a view of striking a balance between what is considered to be too little and too much inventory. Through inventory management, managers of a marketing channel are able to buffer shortages and manage related costs. A Co-Managed Inventory (CMI) is that which involves active collaboration of supply chain parties or marketing channels in facilitating the flow of products to the final consumer and meeting the needs of the market in an efficient and effective manner. This paper is based on the Guinness GB case study. The four main challenges that the company’s senior management faces in the implementation of the company’s CMI are described. Moreover, the paper gives explanations of the most appropriate recommendations for the company as solutions for the challenges in CMI implementation. Challenges in implementation of CMI within Guinness GB Conflicts There are evident conflicts within Guinness GB’s marketing channels which is challenging the implementation of the CMI. This is demonstrated by the fact that “different parts of the business working to different versions of the plan” (Pech, 1998, p. 10). ...
Horizontal conflicts result from disharmony among parties of a marketing channel which are at the same level. On the other hand, vertical conflict results from disharmony among parties of marketing channels that operate within the same supply chain (Dow and Sungwoo, 2011, p. 110). Within Guinness GB, the management is facing a challenge of harmonizing the various parts of the company’s market chain both within the same level and at different levels of the supply chain. This situation within the company has resulted into inefficiency in the movement of inventory. This is due to reduced collaboration and communication between the various parts of the company’s supply chain. Daugherty, Haozhe, Mattioda and Grawe (2009, p. 4) argue that some level of conflict within a marketing channel would reflect healthy competition within the company. Within Guinness GB, the senior management is faced with a dilemma between allowing the parties of its marketing channels to compete and controlling then m centrally. This has in return led to the conflicts within the parties of the channel and a challenge to the implementation of the CMI. The various parts of the company are trying to achieve more than other parts. From the case study, it is apparent that the senior management of Guinness GB is faced with a challenge of ensuring that the goals of the various parties of the marketing channel are compatible. Banyte, Gudonaviciene and Grubys (2011, p. 320) explains that goal incompatibility is one of the major challenges and conflicts with a supply chain which managers have to deal with. This is exemplified by a situation where the dealers, suppliers and producers may have different goals related to the price. There are ...Download file to see next pagesRead More
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