Supply Chain, Marketing Channels, and Distribution Strategies in Business

Transportation Modes

Air = fast, Rail = bulk, Truck = flexible, Ship = cheap overseas.

Horizontal Marketing System

Companies join to exploit new opportunity (Starbucks in Target).

Value Delivery Network

Company + suppliers + distributors working together.

Vertical Conflict

Conflict between different levels (manufacturer vs retailer).

Disintermediation

Cutting out middlemen (Netflix replacing Blockbuster).

Horizontal Conflict

Disagreements between firms at the same level.

Downstream Partners

Distribute products to customers (retailers).

Supply Chain

Entire process from raw materials to delivery.

Information & Promotion Flow

Exchange of data and marketing messages.

Outbound Logistics

Finished goods going out.

Just-in-Time Systems

Goods arrive as needed to reduce storage.

Reverse Logistics

Handling returns and recycling.

Conventional

Independent producers, wholesalers, and retailers, which can lead to competition and conflict.

Inbound Logistics

Inputs coming in.

Distribution Types

Intensive, Exclusive, Selective distribution strategies.

In-Class Examples

Mary Kay (direct), Netflix vs Blockbuster, Starbucks in Target.

Marketing Channel

Network making products available to consumers.

Direct Channel

No intermediaries (Mary Kay).

Distributor Reduces Transactions

One distributor connects multiple producers and consumers.

Channel Members Add Value

Provide efficiency, contacts, logistics.

Channel Management

Selecting, training, and evaluating distributors.

Upstream Partners

Supply raw materials.

VMS

Unified distribution channel where members cooperate towards a common goal.

Indirect Channel

Uses intermediaries (Walmart).

Warehouse vs Distribution Center

Warehouse stores, DC moves goods fast.