Chapter 15: Supply chain and channel management. After reading this chapter, you should be able to: Understand the importance of marketing channels and supply chain management, understand the difference between direct and indirect marketing channels, describe how marketing channels are managed, describe the flow of information and merchandise in the marketing channel. | supply chain and channel management fifteen Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 1 LEARNING OBJECTIVES LO 15-1 Understand the importance of marketing channels and supply chain management. LO 15-2 Understand the difference between direct and indirect marketing channels. LO 15-3 Describe how marketing channels are managed. LO 15-4 Describe the flow of information and merchandise in the marketing channel. Supply Chain Management 3 Marketing Channels Add Value ©Brand X Pictures/PunchStock FedEx commercial with John Moschitta 4 Designing Marketing Channels Manufacturer Customer Direct Channel Manufacturer Customer Retailer Direct Channel One Intermediary Manufacturer Customer Retailer Wholesaler Direct Channel Two Intermediaries There are no intermediaries between the buyer and seller in a direct marketing channel. In indirect marketing channels, one or more intermediaries . | supply chain and channel management fifteen Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 1 LEARNING OBJECTIVES LO 15-1 Understand the importance of marketing channels and supply chain management. LO 15-2 Understand the difference between direct and indirect marketing channels. LO 15-3 Describe how marketing channels are managed. LO 15-4 Describe the flow of information and merchandise in the marketing channel. Supply Chain Management 3 Marketing Channels Add Value ©Brand X Pictures/PunchStock FedEx commercial with John Moschitta 4 Designing Marketing Channels Manufacturer Customer Direct Channel Manufacturer Customer Retailer Direct Channel One Intermediary Manufacturer Customer Retailer Wholesaler Direct Channel Two Intermediaries There are no intermediaries between the buyer and seller in a direct marketing channel. In indirect marketing channels, one or more intermediaries work with manufacturers to provide goods and services to customers. 5 Managing the Marketing Channel and Supply Chain Manufacturer Retailer 3 Retailer 2 Retailer 1 Horizontal Conflict Horizontal Conflict 6 Managing the Marketing Channel and Supply Chain through Vertical Marketing Systems Independent or conventional supply chain Independent marketing channel Vertical marketing channel 7 Control in a supply chain varies depending on the type of relationships. You might compare supply chain relationships to more personal relationships familiar to students, such as a group of their friends versus a professional networking association to which they belong. Ask students: How does the formality of your relationships in each group affect your influence over other members or other members’ influence over you? The more formal the relationship, the more control one member has over the others. Types of Vertical Marketing Systems 8 Power Power in a marketing channel exists when one firm has the .
