Strategy in Marketing Channels

Question 1

Channel Strategy

Answer 1

Channel strategy: The broad principles by which a firm expects to achieve its distribution objectives for its target market(s)

Question 2

Differential Advantage

Answer 2

Differential advantage: (aka sustainable competitive advantage) occurs when a firm attains a long-term, advantageous position in the market relative to competitors

Question 3

Positioning the Channel

Answer 3

… the reputation a manufacturer acquires among distributors (channel members) for furnishing products, services, financial returns, programs, and systems that are in some way superiors to those offered by competing manufacturers (Narus and Anderson)

Question 4

Portfolio Concept

Answer 4

Portfolio Concept: A tool for motivating different types and sizes of channel members participating in various channel structures who may respond differently to various motivation strategies.