ch 12 Flashcards
Value Delivery Network
Network of suppliers, distributors and customers who partner with each other to improve the performance of a system
Supply Chain
Handles the inbound flow of raw materials and parts
- suppliers
Distribution channels
Handles the outbound flow of finished products
- wholesalers and retailers
Upstream Partners
Supply raw materials, finances, and expertise needed
Downstream Partners
Marketing / distribution channels that focus on the customer (wholesalers and retailers)
Direct vs Indirect Marketing Channel
Direct: NO intermediary
Indirect: 1+ intermediary
Intensive Distribution
As many products to outlets as possible
Exclusive Distribution
Exclusive due to factors such as affordability
- ex: Bentley
Selective Distribution
Only distribute to 1 or very few retailers based on the target market so no other retailer can sell a particular brand
- ex: Bay
Channel Conflict
Members are not in agreement about their goals, roles or rewards
Conventional Distribution Channels
- 1+ independent channel members (each separate business seeking to max profits)
- lack of leadership and power (poor management)
VMS (Vertical Marketing Systems)
- producers, wholesalers, retailers = one unified system
- one member owns the others (wields power, is the manager)
Horizontal Marketing Systems
- 2+ companies at 1 level join together
- work well globally
Multichannel Distribution Systems
- harder to control
- generate conflict
Omnichannel Strategy
creates a consistent experience for consumers across all distribution channels
