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Chapter 12 Marketing Channels delivering customer value.docx

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Min Zhao

Chapter 12 Marketing Channels delivering customer value 1. Supply chain I. Structure: 1)upstream: supply the raw material, components 2)downstream: marketing channels/ distribution: retailers, wholesalers  Limitation of the term supply chain: -make-and sell view ---changes to demand chain -too step-by-step, the actual relationship is more complicated  Value delivery network: the network made up of the company, suppliers, distributors, and ultimately customers who “partner” with each other to improve the performance of the entire system in delivering customer value. II. Nature and importance of marketing channel  Marketing channel/ distribution channel e.g Amazon-internet  Why use intermediaries? (p393) 1)high and greater efficiency 2)consumer only want to purchase small quantity with broad assortment 3)bridge the time, place, possession gaps  Number of channel level 1)direct marketing channel 2)indirect marketing channel : (wholesaler)--retailer---consumer/ business -physical flow of products: ownership, payment, information and promotion flow  Number of Marketing intermediaries 1)intensive distribution: stocks products as many outlets as possible e.g convenient products 2)exclusive distribution: giving a limited number of dealers the exclusive right in their territories –enhance brand image, better support and control e.g Rolex, Car 3)selective distribution-good relationship with selected channel members e.g television
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