Management and Organizational Studies 2320A/B Chapter Notes - Chapter 13: Basic Channel, Liquid Oxygen, Rexall

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2320A/B
• Professor: Michael Aloisio

Document Summary

When choosing retail partners, manufacturers consider the basic channel structure, where their target customers expect to find the products, and channel member characteristics. A manufacturer"s strategy depends on its overall marker power, and how consistent a new product line is with current offerings. The degree to which a channel is vertically integrated determines the level of difficulty for the manufacturer to get its products purchased by retailers. Of course, we must keep in mind that there are 3 different kinds of vertical marketing systems: administered, corporate, and contractual. Each system varies in power relationships, product market desirability, and level of difficulty / effort required to get their products purchased by manufacturers. From a retailers perspective, it is important to know from which manufacturers its customers want to buy. On the other hand, manufacturers must be aware of where their target market customers expect to find their products and those of their competitors.