•
Referent power: The manufacturer is so highly respected, that intermediaries are proud to be associated
with it.
•
To streamline the supply chain and cut costs, many manufacturers and retailers have adopted efficient
consumer response (ECR) practices to organize their relationships in three areas: (1) demand side
management (2) supply side management, (3) enablers and integrators.
•
A conventional marketing channel comprises an independent producer, wholesaler, and retailer. Each is
separate business seeking to maximize its own profits, even if this goal reduces profit for the system as a
whole. No channel member has complete or substantial control over other members.
•
A vertical marketing system (VMS), comprises the producer, wholesaler, and retailer acting as a unified
system. One channel member, the channel captain, owns the others or franchises them or has so much power
that they all cooperate.
•
A corporate VMS combines successive stages of production and distribution under single ownership.
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- Spring '11
- CHOI
- Marketing, VMs, conventional marketing channel, channel captain, channel conflict, channel member
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