The channel member with whom the others wish to be associated has the power and

The channel member with whom the others wish to be

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member. The channel member with whom the others wish to be associated has the power and can get them to do what they want. Expertise Power : A type of marketing channel power that occurs if the channel member exerting the power has expertise that the other channel member wants or needs and can therefore get them to do what they want. Information Power : A type of marketing channel power within an administered vertical marketing system in which one party (e.g., the manufacturer) provides or withholds important information to influence the actions of another party (e.g., the retailer). Legitimate Power : A type of marketing channel power that occurs if the channel member exerting the power has a contractual agreement with the other channel member that requires the other channel member to behave in a certain way. This type of power occurs in an administered vertical marketing system. Contractual Vertical System : A system in which independent firms at different levels of the supply chain join together through contracts to obtain economies of scale and coordination and to reduce conflict. Marketing Systems : A system in which independent firms at different levels of the supply chain join together through contracts to obtain economies of scale and coordination and to reduce conflict. Franchising : A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor. Corporate Vertical Marketing System : A system in which the parent company has complete control and can dictate the priorities and objectives of the supply chain; it may own facilities such as manufacturing plants, warehouse facilities, retail outlets, and design studios. Strategic Relationship : A supply chain relationship that the members are committed to maintaining long term, investing in opportunities that are mutually beneficial; requires mutual trust, open communication, common goals, and credible commitments. Partnering Relationship : A supply chain relationship that the members are committed to maintaining long term, investing in opportunities that are mutually beneficial; requires mutual trust, open communication, common goals, and credible commitments. Universal Product Code (UPC) : T he black-and-white bar code found on most  merchandise. It contains a 13-digit code that indicates the manufacturer of the item, a description of the item, information about special packaging, and  special promotions.  Advanced Shipping Notice (ASN):  An electronic document that the supplier sends the retailer in advance of a shipment to tell the retailer exactly what to expect in the shipment. Information Flows : Electronic Data Interchange (EDI) : The computer-to-computer exchange of business documents from a retailer to a vendor and back. Vendor-Managed Inventory (VMI) : An approach for improving supply chain efficiency in which the manufacturer is responsible for maintaining the retailer's inventory levels in each of its stores.
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