•
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.
This
preview
has intentionally blurred sections.
Sign up to view the full version.

This is the end of the preview.
Sign up
to
access the rest of the document.
- Spring '11
- CHOI
- Marketing, VMs, conventional marketing channel, channel captain, channel conflict, channel member
-
Click to edit the document details