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    This document discusses supply chain networks and marketing channels. It notes there can be vertical, horizontal, and channel conflicts within these networks. It defines a value delivery network as the marketing organization, suppliers, distributors, and customers working together. Conventional marketing channels lack leadership and power and have conflicts, while a vertical marketing network consists of independent firms at different production and distribution levels working under a unified network, with the most common form being contractual networks.

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    This document discusses supply chain networks and marketing channels. It notes there can be vertical, horizontal, and channel conflicts within these networks. It defines a value delivery network as the marketing organization, suppliers, distributors, and customers working together. Conventional marketing channels lack leadership and power and have conflicts, while a vertical marketing network consists of independent firms at different production and distribution levels working under a unified network, with the most common form being contractual networks.

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    6 views1 page

    Topic 6 - Place-1

    Uploaded by

    Ngoc Nguyen
    This document discusses supply chain networks and marketing channels. It notes there can be vertical, horizontal, and channel conflicts within these networks. It defines a value delivery network as the marketing organization, suppliers, distributors, and customers working together. Conventional marketing channels lack leadership and power and have conflicts, while a vertical marketing network consists of independent firms at different production and distribution levels working under a unified network, with the most common form being contractual networks.

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    © All Rights Reserved
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    of 1

    Supply Chain

    Upstream partners Horizontal conflict


    Downstream partners Supply chain & Channel conflict
    Value Delivery Vertical conflict
    networks

    Value delivery network:


    marketing organisation + suppliers +
    distributors + customers
    Conventional marketing channel:
    Lack leadership & power, conflict...
    Marketing Channels
    (Distribution Channels)

    Corporate VMN:
    Production & distribution under single ownership...
    Intermediaries Eg.
    What is Place/
    Channel
    Marketing
    channel/
    W6. Behaviour &
    Contractual VMN:
    Channel
    Functions of marketing
    channel members:
    Distribution PLACE Organisations
    Vertical marketing
    network (VMN):
    Consists of independent firms at different
    channel? levels of production & distribution...
    Information A unified network Most common form: ............
    Promotion Eg.
    Contact The Nature of
    Matching Marketing
    Negotiation Administered VMN
    Channels and
    Physical distribution Has a few dominant channel members without
    value creation
    Financing Channel common ownership. Leadership comes form
    Risk taking Organization/ size & power...
    Distribution Eg.
    Systems
    Types of distribution channels
    (of different lengths): Marketing Channel
    1. Analysing consumer needs
    Direct marketing channel: 0 intermediary Design Horizontal marketing network:
    Indirect marketing channel: >1
    4. Evaluating those alternatives More than 2 companies at one level join together to follow
    intermediaries
    a new marketing opportunity...
    2. Setting channel objectives Eg.

    3. Identifying major channel alternatives


    *Distribution Strategy (based on number of marketing Multichannel Distribution network
    intermediaries)
    a) Intensive Distribution: ................
    b) Selective Distribution: ..................
    c) Exclusive Distribution: .......................

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