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flow & transformation of products, from raw materials to the end consumer
technology has HELPED
managerial activities used by an organization to transform resource inputs into products
planning, implementing, controlling efficient flow from point A to the end (consumption)
the progress of value from raw material to final customer, and then back to redesign & final disposition
integration of ops, logistics, supplies
includes mfr., research, sales, advert., shipping
directs flow of products from producers to consumers
determines product's market presence & buyer's accessibility to product
strategic b/c they entail l-t committments
ex: wholesaler buy & resell products to other wholesalers, to retailers, & to industrial consumers
customer relationship mgmt (CRM)
exploits info from supply chain partners' info systems to help all channel MEMBERS make marketing strat. decisions
utility of marketing channels
1) time _utility_ (available when customer wants product)
2) place _utility_ (make products available when customer wants them)
3) possession _utility_ (customer has access to use product / store product
4) form _utility_ (CHANNEL MEMBERS can refine, assemble, etc. product to suit indiv customer needs)
facilitates exchanges b/w producer & business customer
most effective when product has broad market appeal
does selling activities at relatively low cost to mfr and reducing a producer's financial burden
unfortunately, they may also stock competitors
independent businessman who sells complimentary products of several producers in assigned territories
paid by commission
use 2+ marketing channels for distributing the same product to the SAME target market.
strategic channel alliance
agreement, the products of 1 organiz. are distributed through the marketing channels of ANOTHER
channel selection decision
affected by 1+ of:
customer chars (business customers prefer to deal directly w/producer)
product attributes (less expensive, more standardized products can use long channels. cars & dairy don't)
type of organiz. (large firms can negot. better deals)
competition (can adapt a similar stat. to competition)
marketing environm. forces (might need to use a low-cost channel)
chars of intermediaries
only some available outlets in an area are chosen to distribute product
for shopping products
prevent this from happening by providing competing resellers w/ diff brands, negot. territorial issues, etc.
vertical channel integration
combines 2+ STAGES of the channel under 1 mgmt
they coordinate efforts to reach a desired target market
vertical marketing systems
a single channel member manages channel activity to achieve low-cost distribution
horizontal channel integration
combing organiz. at the same lvl of operation under 1 mgmt
can be from mergers
receiving & transmitting sales order info
can contrib to high customer satisfaction, decreased costs, etc.
large facility for receiving, warehousing, redistributing products to stores or customers
when supplier furnishes a product to a channel member, and also says that the channel member must purchase other products as well
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