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Vsm812s Chapter 1
Vsm812s Chapter 1
Vsm812s Chapter 1
The prediction:
Disintermediation — reduction of number of intermediaries
The reality:
Reintermediation—evolution of a new type of intermediary
Yahoo!
eBay
Amazon.com
1. The explosion of information technology and E- 1
commerce
2. A greater difficulty in gaining a sustainable competitive advantage
3. The growing power of distributors, especially retailers in
marketing channels
4. The need to reduce distribution costs
Management’s involvement in
the process
Anyone in a firm or
organization who is involved
in marketing channel
decision making
Objective 3:
1
How does marketing channel strategy relate to
the
rest of the marketing mix?
Marketing Mix
or
the four Ps Challenges
Product Limited ability to gain and hold competitive
advantage
Price Price wars erode profitability & provide unstable
basis for sustaining competitive advantage
Promotion Expensive and short-lived
Product Flow
Negotiation Flow
Ownership Flow
Information Flow
Promotion Flow
1
Product Flow
Manufacturer
Transportation Company
Wholesalers
Retailers
Consumers
1
Negotiation Flow
Manufacturer
Wholesalers
Retailers
Consumers
1
Ownership Flow
Manufacturer
Wholesalers
Retailers
Consumers
1
Information Flow
Manufacturer
Transportation Company
Wholesalers
Retailers
Consumers
1
Promotion Flow
Manufacturer
Advertising Agency
Wholesalers
Retailers
Consumers
Objective 5:
1
Distribution through intermediaries
Contactual Efficiency
1
Distributed Distributed
interorganizationally intraorganizationally
Contactual Efficiency 1
Granada Guitar Co.
Channel Structure
Why are single-
The group of channel members to which a channel
set of distribution tasks has been structures currently
allocated the exception?