MKT 100 Lecture Notes - Lecture 10: Tigerdirect, Vertical Integration, Starbucks

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Paul Gillespie

Document Summary

Supply chain management (scm): integrates all points in production process (i. e. from suppliers to manufacturers to warehouse distribution). Distribution channel: institution which moves product from production to consumption. Logistics management: controls flow of information across all points of production. Direct: manufacturer to consumer (i. e. tigerdirect, avon). Indirect: manufacturer to retailer to consumer (i. e. ford). Multichannel: manufacturers to retailers (for consumers); manufacturers to distributors to dealers (for businesses). Transactional function: buying, risk-taking, promotion and selling. Channels can conflict due to goal incompatibility, unclear roles and rights, differences in perception and dependence on manufacturer. Vertical integration: companies gain control over their suppliers or distributors secure supply and distribution channels and gain power. Forward integration: firm gains ownership or increased control over its previous customers. Backward integration: firm gains ownership or increased control over its previous suppliers.