Essay on Marketing Channels

1279 Words Nov 22nd, 2014 6 Pages
Ch10 Marketing Channels
Supply Chinas and the Value Delivery Network

Upstream: Supply raw materials, components, parts, information, finances, and expertise
Downstream: Marketing channels towards customers, including wholesales and retailers,

* Supply chain: make-and-sell view, which suggest productive inputs as starting point * Demand chain: Sense-and-respond view
But sometimes it takes a step-by-step, linear view of purchase-production-consumption activities

Value Delivery network: A network composed of company, suppliers, distributors, and ultimately customers who partner with each other to improve the performance of the entire system in delivering customer value

The Nature
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Number of Channel Levels
Channel Level: A layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer
The length of a channel is indicated by the number of intermediary levels.

Direct Marketing Channel: A marketing channel that has no intermediary levels.
Indirect Marketing Channel: A marketing channel contains one or more intermediary levels.

* A greater number of levels mean less control and greater channel complexity * Institutions in channel are connected by several types of flows, including physical flow of products, flow of ownership, payment flow, information flow, and promotion flow

Channel Behavior and Organization

Distribution channels are complex behavioral systems in which people interact to accomplish individual, company and channel goals

Channel Behavior

* A marketing channel consists of firms that have partnered for common good, who depend on the others * Each channel member plays a specialized role * Each should understand and accept their roles, coordinate

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