Marketing channel managemnt or supply chain management
set of approaches and techniques firms employ to efficiently and effectively integrate their suppliers, manu
firms that buy products from manufacturers and resell them to retailers
viral marketing program
encourage ppl to pass along marketing message to otehr potential consumers
distribution center
facility for the receipt storage and redistribution of goods to company stores may be opertated by retailers manu or distribution specialists.
fullfillment centers
warehouse ship directly to consumer
Direct marketing channel
no intermediaries between buyer and seller
indirect marketing channels
one or more intermediaries work with manufacturer to provide goods and services to customers
-ford using dealers
Vertical channel conflict
supply chain members tha tbuy and sell to one another are not in agreement about their goal, disagreement
horizontal channel conflict
disagreement among memebr of same level like 2 manu or 2 retailer
marketing channels add value
reduce number of transactions
increase value for consumer
more effieicent and effective
independent or conventional marketing channel
several independent members (manu, retailer, wholesaler) attempt to satify their own objectives and max their profit at expense of other members.
vertical marketing system
members act as unified system (administered, contractual and corporate)
administered vertical marketing systems
no common ownership or contract relationship, but dominant member control the power
legitimate power
-when something met
-force to accept or punish
-associate with other firm
-influence other channel member
-walmart know alot info
-behave in certain way
Contractual vertical marketing sysytem
when marketing channel join from contracts to obtain econ scale and reduce conflct
strategic relationship/ partnering relatioship
mutual trsut
credible comit
common goal
open communication
corporate vertical marketing
parent company has complete control and can dictate the priorities, own facilities, manufacture plants
Electronic data interchange
cycle time
easily analyzed and used
quality of communication
in simple economy, most direct supply chain would be
manufacturer to consumer
sales department must coordinate its delivery promises directly with the
distribution center
A direct marketing channel is one that sells a product from a manu to a consumer
without retailer
Indirect marketing channel would invlove a transaction from manufactuerer to consumer including all of the following intermediaries
retailer, wholesaler, shipper
Relationships in supply chains
Occur bc parties want somthing diff from each other
Channel conflict arises bc of supply chain members who have
conflicting goals
Ex of vertical channel conflict
computer manufacturer agners retailers by selling its product at discount online.
when 2 electronics stores sell sanyo tv engage in price war is a ex of
channel conflict is likely to be greatest when channels are
less closely aligned
In a simple economy, most direct supply chain would be
manufacturer to consumer
Facility used for receipt, storage redistribution of goods
distribution center
Generall, relatinships in supply chain occur bc the parties
want or need something from one another
conventional marketing channel = members of the channel attempt to reach their own objectives and maximize their own profits, sacraficing other channel members
fulfillment centers= are used to ship directly to customers.
A marketing channel in which the members act as a unified system is known as
vertical marketing system
A vertical system in which there is no common ownership and no contractual relation , but the dominant channel member controls the relationship known as ___
administered vertical system
a contractual marketing system is one in which
relationships between channel members are governed through contracts
strategic/partnering relatioship
one which supply chain members are comiited to maintain relationship over long term
In the flow of info thru marketing channel, the ___ step is when scan upc code
Coordinates deliveries to distribution centers
3 main benefits of EDI to supply chain members
data reports easy analyze, faster flow info, better quality of communication
Flow 1 (customer to store)
Flow 2(Store to buyer)
Flow 3 (Buyer to manu)
Flow 4(store to manu)
Flow 5(store to distribute center)
Flow 6(manu to distribution center and buyer)
1- upc scan
2- Point of sale terminal records the purchase info from stores to buyers office
3-purchase info from BB store saw by relatiler and create merchandise sent to sony
4-info sent to manu from store and manu decide wen to ship more devices (auto reorder, sales transact)
5-stores also communicate with BB center to coordinate delieveries and check inventory status
6- advanced ship notice(ASN) supplier send retailer in advancce of shipment to tell retailr what to expect in shipment
lead time
AMT of time between recognition that ordcer must be placed and arrival of merchandize
Benefit of JIT include
reduce lead time, increase product availability
Vender managed inventory= manu kno when to deliver a retailer more merchandise by determining prespecivifc reorder point
Dispatcher= coordinates delieveries to distribution center
Pick ticket= document display on screen with forklift truck how much each item to get to storage area
Inventory investment = firm ability to satify customer demand by having stock on hand
Radio frequency identification (RFID)= tags are tiny computer chips that automatically transmit to a special scanner all the information about a container’s contents or individual Page 323products. passive tracking
EDI= computer to computer exchange business doc from retailer to vendor and back
Receiving is the process of recording the receipt of merchandise as it arrives at a distribution center.
Checking is the process of going through the goods upon receipt to make sure they arrived undamaged and that the merchandise ordered was the merchandise received.
cross-docking distribution center, merchandise cartons are prepackaged by the vendor for a specific store. The UPC or RFID labels on the carton indicate the store to which it is to be sent
Floor-ready merchandise-
Merchandise that is ready to be placed on the selling floor immediately.Getting merchandise floor-ready entails ticketing, marking, and, in the case of some apparel, placing garments on hangers (or maybe
Ticketing and marking refers to affixing price and identification labels to the merchandise. It is more efficient for a retailer to perform these activities at a distribution center than in its stores
Just-in-time (JIT) inventory systems, also known as quick response (QR) inventory systems
An inventory management system used in retailing; merchandise is received just in time for sale when the customer wants it; see also just-in-time (JIT) inventory system.
JIT system include reduced lead time (the amount of time between the recognition that an order needs to be placed and the arrival of the needed merchandise at the seller’s store and is available for sale), increased product availability, and lower inventory investment.16
marketing channel management, which also has been called supply chain management, refers to a set of approaches and techniques firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, and transportation intermediaries into a seamless operation in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, as well as to minimize systemwide costs while satisfying the service levels their customers require.
Distribution center primarily coordinates – transportation and tracking merchandise
Firms ability to satisfy custome demand by having stock on hand impact – inventory investment
Info stored in data warehouse= accessible on various levels
Cycle time= time between decision to place order and receipt of merchandise
Wholesalers = firms that buy products from manufacturers and resell them to retailers; retailers sell products directly to consumers.
viral marketing program= is one that encourages people to pass along a marketing message to other potential consumers.
Data Warehouse= Purchase data collected at the point of sale goes into a huge database
Vendor-managed inventory (VMI) = is an approach for improving marketing channel efficiency in which the manufacturer is responsible for maintaining the retailer’s inventory levels in each of its stores.
distribution center= a facility for the receipt, storage, and redistribution of goods to company stores, may be operated by retailers, manufacturers, or distribution specialists.

Get access to
knowledge base

MOney Back
No Hidden
Knowledge base
Become a Member