100%(9)9 out of 9 people found this document helpful
This preview shows page 4 - 5 out of 10 pages.
in opportunities that are mutually beneficial. In a conventional or administered marketing channel, there are significant incentives to establishing a strategic relationship, even without contracts or ownership relationships. Both parties benefit because the size of the profit has increased, so both the buyer&seller increase their sales/profits.successful strategic relationships require: mutual trust(holds a strategic relationship together), open communication, common goals for a successful relationship, interdependence (When supply chain members view their goals and ultimate success as intricately linked, they develop deeper long-term relationship), & credible commitments (when both parties make credible commitments or tangible investments to the relationship) -Making information flow through marketing channels & supply chainsflow 1 (customer-store): ex. sales associate at best-buy scans the UPC on a product and customer receives a receipt.flow 2 (store to buyer): the POS (point of sale) terminal records the purchase information & electronically sends it to the buyer at best buys corporate office (info is used to analyze & monitor sales)flow 3 (buyer to manufacturer) purchase information from each store is aggregated by the retailer as a whole, which creates an order for new merchandise & is sent to Sony.flow 4 (store to manufacturer): in some situations purchase information is sent to the manufacturer & the manufactuer decides when to shop more merchandise. In other cases (when merchandise is recorded more frequently) the ordering process is done automatically.flow 5 (store to distribution center): store communicates with the distribution center to coordinate deliveries & check inventory status.flow 6 (Manufacturer to Distribution Center and Buyer): when the manufacturer ships the merchandise to the distribution center it sends an ASN (advanced shipping notice) an electronic document that the buyer sends the retailers in advance of a shipment to tell the retailer exactly what to expect in the shipment.Data Warehouse: the database that purchase data collected at the point of sale goes in to. Manufacturers sometimes have access to this database & communicate with retailers using electronic data interchange & use supplychain systems known as vendor-managed inventory.in flow 3,4, and 6 the retailer & manufacturer exchange business documents through EDIVMI is an approach for improving marketing channel efficiency in which the manufacturer is responsible for maintaining the retailers inventory levels in each of its storesPush vs. Pull marketing channels: Push strategy: merchandise is allocated to stores by previous sales forecasts (designed to increase demand by motivating sellers, wholesalers & distributers to highlight their product & push the product on to consumers.) Pull strategy: the amount of merchandise sent to the store is determined by sales data caputred by POS terminals (designed to get consumers to pull the product into the supply chain by demanding it)making merchandise flow through marketing channels-Distribution centers vs. direct store delivery