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ch 12 marketing channels

ch 12 marketing channels - • Flow of ownership •...

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Marketing Channels: Delivering Customer Value Chapter 12
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Supply Chain Overview Big Better Best Value Chains Channel Market Channel Market Benefits
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Supply Chains and the Value Delivery Network Supply chain “make and sell” view includes the firm’s raw materials, productive inputs, and factory capacity Demand chain “sense and respond” view suggests that planning starts with the needs of the target customer, and the firm responds to these needs by organizing a chain of resources and activities with the goal of creating customer value
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Importance of Market Channel
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Wholesaler/Retailer Channel
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How Channels Add Value
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Channel Behavior and Organization Marketing channel consists of firms that have partnered for their common good with each member playing a specialized role Channel conflict refers to disagreement over goals, roles, and rewards by channel members Horizontal conflict Vertical conflict
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Channel Interactions Connected by types of flows: Physical flow of products
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Unformatted text preview: • Flow of ownership • Payment flow • Information flow • Promotion flow Types of Channel Systems Conventional distribution systems consist of one or more independent producers, wholesalers, and retailers. Each seeks to maximize its own profits, and there is little control over the other members and no formal means for assigning roles and resolving conflict. Vertical marketing systems (VMSs) provide channel leadership and consist of producers, wholesalers, and retailers acting as a unified system and consist of: Corporate marketing systems, Contractual marketing systems, Administered marketing systems. ZARA Horizontal marketing systems are when two or more companies at one level join together to follow a new marketing opportunity. Companies combine financial, production, or marketing resources to accomplish more than any one company could alone. MacDonald’s & Walmart Hybrid MultiChannel Systems What type of Supply Chain?...
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