Supply Chains and the Value Delivery Network
What company turned the retail music business on its head by selling music via the internet on iTunes.
What is Apple?
When two or more companies at one level join together to pursue a common marketing opportunity.
What is a horizontal marketing system?
Disagreement or discord among channel members at the same level (such as two competing franchise locations) is known as this type of conflict.
What is horizontal conflict?
When companies look at things like inventory levels, sales quotas, customer delivery time, etc., and decide whether to reward, help, or replace intermediaries.
What is evaluating channel members?
This type of distribution channel sells products directly from the producer to the end consumer without any intermediaries.
What is a direct channel?
This technology uses microchips and radio waves to automatically track and locate inventory items along the supply chain.
What is RFID (Radio-Frequency Identification)?
When a single firm sets up two or more marketing channels to reach one or more customer segments.
What is multichannel distribution system?
It is the use of more than one but fewer than all of the intermediaries who are willing to carry a company’s products.
What is selective distribution?
When companies choose intermediaries that best fit its channel's objectives.
What is selecting channel members?
A logistics arrangement where a retailer sells products without storing inventory, instead forwarding orders to a third-party manufacturer/wholesaler to ship directly.
What is dropshipping?
This deals with a system of procurement, operations management, logistics and marketing channels so that the raw materials can be converted into a finished product and delivered to the end customer.
What is supply chain management?
The cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries.
During the channel design process, a company determines how many intermediaries to use at each level, choosing between intensive, selective, or exclusive distribution. This key design choice is known as determining the channel's what?
What is distribution intensity (or channel density)?
When the seller requires that these dealers not handle competitors' products.
What is Exclusive Dealing?
B2B e-commerce platforms that bring multiple sellers and industrial buyers together in one centralized digital space are known as this.
What is an e-marketplace (or digital exchange/B2B portal)?
This forms a vital link between the firm and its customers. Think examples such as wholesalers and retailers.
What is downstream?
A channel consisting of one or more independent producers, wholesalers, and retailers. Each is a separate business seeking to maximize its own profits, perhaps even at the expense of the system as a whole.
What is a Conventional Distribution Channel?
This phenomenon occurs when a brand sells its products through unauthorized channels or discount retailers without the manufacturer's consent.
What is the gray market?
When the seller allows only certain outlets to carry its products.
What is Exclusive Distribution?
A retail strategy that provides a seamless, integrated shopping experience across all channels (mobile apps, websites, physical stores, and social media).
What is omnichannel marketing/retailing?
This is the set of firms that supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service.
What is upstream?
A channel structure in which producers, wholesalers, and retailers acting as a unified system. One channel member owns the others, has contracts with them, or wields so much power that they must all cooperate.
What is a Vertical Marketing System (VMS)?
A strategy in which they stock their products in as many outlets as possible.
What is intensive distribution?
This is the process of selecting, managing, and motivating individual channel members and evaluating their performance over time.
What is Marketing Channel Management?
This marketing and distribution strategy focuses on directing promotional efforts toward channel intermediaries (such as offering trade discounts, buy-back guarantees, or co-op advertising) to encourage them to stock and sell a product to consumers.
Push strategy