Marketing Channels and Supply Chain Management


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Learning Goals



Know why companies use distribution channels and understand the functions that these channels perform.
Learn how channel members interact and how they organize to perform the work of the channel.
Know the major channel alternatives that are open to a company.
Comprehend how companies select, motivate, and evaluate channel members.
Understand the nature and importance of marketing logistics and integrated supply chain management.



Definitions



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.
Marketing channel
Set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user


Nature and Importance of Marketing Channels


Number of Channel Levels
The number of intermediary levels indicates the length of a marketing channel.
Direct Channels
Indirect Channels
Producers lose more control and face greater channel complexity as additional channel levels are added.