> Channel Conflict and Channel Leadership - channel conflict: conflict arising when the members of a distribution channel disagree over the roles they should play or rewards they should receive - channel captain: channel member that is the most powerful in determining roles and rewards of other members e.g. can be a manufacturer, or large retailer - vertical marketing systems: system in which there is high degree of coordination among all units in the distribution channel so that a product moves efficiently from manufacturer consumer LO-7: Describe the role of intermediaries. Explain the functions of wholesalers and identify the types of retailers and e-intermediaries.
Wholesaling - provide storage, delivery, additional value-adding services (credit, marketing advice) - don’t own their merchandise, serve as sales and merchandising arms for producers/sellers who don’t have their own sales forces Retailing - brick-and-mortar retail outlets product line retailers, bargain retailers, convenience stores - non-store retailing e.g. vending machines direct-response retailing: firms directly contact customers to inform them about products and receive sales orders e.g. mail order catalogue, telemarketing, video/tv e-intermediaries: internet distribution channel member that assists in delivering products to customers or that collects information about various sellers to be presented to customers - shopping agents: helps users find products and prices, but does not take possession of products - online retailing: allows sellers to inform, sell to, and distribute to consumers via web - interactive retailing: non-store retailing that uses a website to provide real-time sales and customer service LO-8: Describe the physical distribution process. physical distribution: activities needed to move a product efficiently from manufacturer to consumer Warehousing Operations - warehousing: a physical distribution operation concerned with the storage of goods - non-physical storage: off-site digital storage services to protect valuable data Transportation Operations -consider the nature of product, distance it must travel, speed with which it must be received - differences in cost – trucks, railroads, planes, digital transmission Distribution through Supply Chains as a Marketing Strategy