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Marketing Ch15 part2

Marketing Ch15 part2 - Referent power The manufacturer is...

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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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