Management and Organizational Studies 2320A/B Chapter Notes - Chapter 12: Marketing Channel, Disintermediation, Supply Chain Management Software

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The supply chain consists of upstream and downstream partners. Upstream from the company is the set of firms that supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service. Marketers, however, have traditionally focused on the downstream side of the supply chain on the marketing channels (or distribution channels) that look toward the customer (wholesalers or retailers) A better term would be a demand chain because it suggests a sense and respond view of the market. Value delivery network: made up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve the performance of the entire system. Marketing channel (or distribution channel): a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user. Many companies have used imaginative distribution systems to gain a competitive advantage. Distribution channel decisions often involve long-term commitments to other firms.

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