COMM 223 Chapter Notes - Chapter 11: Drop Shipping, Marketing Channel, Services Marketing
18 Apr 2017
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Upstream from the company: set of firms that supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service. Downstream side: the marketing channels (or distribution channels) that look toward the customer (link producer with customer) 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. The term supply chain may be too limited as it takes a make-and-sell view of the business. It suggests that raw materials, productive inputs, and factory capacity should serve as the starting point for market planning. A better term would be demand chain because it suggests a sense-and-respond view of the market. Under this view, planning starts by identifying the needs of target customers, to which the company responds by organizing a chain of resources and activities with the goal of creating customer value.
