Marketing Channels: Delivering Customer Value - The Nature and Importance of Marketing Channels
7 important questions on Marketing Channels: Delivering Customer Value - The Nature and Importance of Marketing Channels
What can a distribution channel do for a company in a positive way?
What's the difference between a conventional marketing channel and vertical marketing system?
A vertical marketing system consists of firms who act as a unified system. One channel member owns the others, has a contract with them or wields so much power the others must cooperate. This is more effective, because together they have more bargaining power.
Why do firms count so much for their intermediary partners?
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We distinguish corporate, contractual and administered VMS. What's the difference?
Within a contractual VMS independent firms collaborate through contracts to obtain more economies of scale. The franchise organization is the most common type of contractual VMS.
Within an administered VMS firms collaborate due to size and power of one or a few dominant channel members.
What is the role of distribution channels?
We distinguish direct, retail, wholesale and agent channels. What's the difference?
In a retail channel retailers who are channel partners, e.g. Cars, clothing, supermarket.
In a wholesale channel are consumer products e.g. Hardware, tobacco, confectionary.
The agent channel is often used to products intended for mass production, e.g. Processed food.
How is the complexity determined in these channels?
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