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direct, a practice called disintermediation. For example, conflict occurred when American Airlines decided to terminate its relationship with Orbitz and Expedia, two online ticketing and travel sites, and sell directly through AA Direct Connect. Second, conflict occurs due to disagreements over how profit margins are distributed among channelmembers. This happened when Amazon and the Hachette Book Group, the third-largest trade book and educational publisher, engaged in a seven-month dispute about how e-book revenue should be divided between the two companies. A third conflict situation arises when manufacturers believe wholesalers or retailers are not giving their products adequate attention. For example, Nike stopped shipping popular sneakers such as Nike Shox NZ to Foot Locker in retaliation for the retailer's decision to give more shelf space to shoes costing under $120.d.Logistics (421): A marketing channel relies on logistics to make products available to consumers andindustrial users. Logisticsinvolves those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost. The performance of these activities is logistics management,the practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirements.e.Supply Chain(421-422): refers to the various firms involved in performing the activities required tocreate and deliver a product or service to consumers or industrial users. It differs from a marketing channel in terms of the firms involved. A supply chain includes suppliers that provide raw material inputs to a manufacturer as well asthe wholesalers and retailers that deliver finished products to consumers. The management process is also different.5.Chapter 13:a.Marginal RevenuePPTsb.Final Price (351):The Bugatti Chiron U.S. list price is a cool $2.5 million, give or take. But the dealer has agreed to give you a trade-in allowance of $7,000 based on the Kelley Blue Book() trade-in value for your 2008 Mini-Cooper four-door sedan that is in good condition. And your great-uncle has offered to give you a 5-year interest-free loan. Other charges include: (1) an import duty of $50,000; (2) a gas-guzzler tax of $7,000;(3) a 7.5 percent sales tax of $229,125; (4) an auto registration fee of $5,000 to the state; and (5) a $50,000 destination charge to ship the car to you from France.