Marketing Channels and Supply Chain Management Flashcards
Explain the Value Delivery Network
All groups that contribute to improvements in performance of the entire system
Suppliers, distributors and customer
Identify the Upstream Partners
Organizations or individuals in the supply chain that contribute to the production and distribution of a product or service before it reaches the final consumer.
The raw material suppliers, components, parts, information, finances, an
Identify the Downstream Partners
Entities or collaborators involved in the marketing and distribution channels beyond the production phase, working to bring the product or service to the end consumer.
Define Disintermediation
Disintermediation occurs when product or service producers cut out intermediaries and go directly to final buyers, or when radically new types of channel intermediaries displace traditional ones
Decribe Intermediaries
A third-party entity or individual that acts as a middleman or facilitator in the distribution of goods or services between producers (manufacturers) and consumers.
Through their contacts, experience, specialization, and scale of operations, intermediaries usually offer the firm more than it can achieve on its own.
Name the Benefits of Intermediaries to the Marketing System
- Increased Market Reach
- Risk taking
- Market Information
- Promotion and Marketing
Explain why Channel Conflict occurs
Each member of the channel or marketing system is seeking to maximize its own profits at the expense of the other members
Define Vertical Conflict
Conflict between different levels of the channel
Between manufacturer and wholesaler etc.
Define Horizontal Conflict
Conflict between parties at the same level of the channel
Between two retailers
Describe Conventional Distribution Systems
Conventional distribution systems consist of one or more independent producers, wholesalers, and retailers.
There is little control over the other members and no formal means for assigning roles and resolving conflict.
Define Vertical Marketing Systems
A collaborative arrangement in the distribution channel where various entities, such as manufacturers, wholesalers, and retailers, work together as a unified system to enhance efficiency and achieve common marketing goals.
Identify the three types of Vertical Marketing Systems
- Corporate vertical marketing systems
- Contractual vertical marketing systems
- Administered vertical marketing systems
Define Corporate Vertical Marketing Systems
A marketing system in which a single corporate entity owns and operates different levels of the production and distribution chain, from manufacturing to retail.
Define Contractual Vertical Marketing Systems
A marketing system where independent entities at different levels of production and distribution collaborate through formal agreements or contracts to achieve common goals.
Define Administered Vertical Marketing Systems
A marketing system where coordination and cooperation between different levels of production and distribution are achieved through the dominant influence of a powerful player, often a large manufacturer or retailer.
