MGMA01H3 Chapter Notes - Chapter 12: Marketing Channel, Disintermediation, Supply Chain
Document Summary
Supply chain consists of upstream and downstream partners. Upstream set of firms that supplies the raw materials, components, parts, information, finances, and expertise needed to create a product or service. Downstream marketing channels that look toward the customer: form a vital connection between firm and its customers. Value delivery network network composed 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. Marketing channel (distribution channel) set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user. Company"s channel decisions directly affect every other marketing decision: pricing, sales force, new products. Distribution channel decisions often involve long-term commitments to other firms. Producers use intermediaries because they create greater efficiency in making goods available to target markets.