Chapter 12 Flashcards
upstream
the set of firms that supply the raw materials, components, parts need to create a product or service
downstream
marketing channels or distribution channels that look toward the customer; wholesalers and retailers
value delivery network
network composed of the company, suppliers, distributors and customers partner with each other to improve performance
marketing/distribution channel
the chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer
- amazon, itunes
channel level
the intermediary between producer and end consumer
direct marketing channel
(0 level channel) has no intermediary levels manufacturer -> consumer
indirect marketing channel
(1 level channel and up) containing one or more intermediary levels
channel conflict
disagreements about who should do what and for what rewards (horizontal or vertical)
conventional distribution channel
comprises of a producer, wholesalers and retailers, all acting independently
vertical marketing system
a channel structure in which producers, wholesalers, and retailers act as a unified system (one has power to control the others)
types of VMS (3)
- corporate
- contractual
- administered
corporate vms
ownership of all levels of the production or distribution chain by a single company (Apple)
contractual vms
independent firms join a chain via contract (franchise model)
administered vms
one member of the channel is large and powerful enough to coordinate the activities of the other members without an ownership stake
horizontal marketing systems
strategic alliances between firms at the same level of a chain (nike and apple)
