Companies rarely work alone in creating value for customers and building profitable customer relationships. Instead, most are only a single link in a larger supply chain and marketing channel. As such, a firm’s success depends not only on how well it performs but also on how well its entire marketing channel competes with competitors’ channels. The first part of this chapter explores the nature of marketing channels and the marketer’s channel design and management decisions. | LECTURE 18 Marketing Channels Copyright 2012 Pearson Education Inc. 1- 1- 11 Publishing as Prentice Hall Topic Outline Supply Chains and the Value Delivery Network The Nature and Importance of Marketing Channels Channel Behavior and Organization Channel Design Decisions Channel Management Decisions Public Policy and Distribution Decisions Marketing Logistics and Supply Chain Copyright 2012 Pearson Education Inc. 1- 2 Publishing as Prentice Hall Supply Chains and the Value Supply Delivery Chain PartnersNetwork Upstream partners Include raw material suppliers components parts information finances and expertise to create a product or service. Downstream partners Include the marketing channels or Copyright 2012 Pearson Education Inc. distribution Publishing as Prentice Hall channels that look toward 1- 3 Supply Chains and the Value Delivery Network Supply Chain Views Supply chain make and sell view includes the firm s raw materials productive inputs and factory capacity Demand chain sense and respond view suggests that planning starts with the needs of the target customer and the firm responds to these needs by organizing a chain of resources and activities with the goal of creating customer Copyright value 2012 Pearson Education Inc. 1- 4 Publishing as Prentice Hall Supply Chains and the Value Delivery Network Value Delivery Network Value delivery network is the firm s suppliers distributors and ultimately customers who partner with each other to improve the performance of the entire system Copyright 2012 Pearson Education Inc. 1- 5 Publishing as Prentice Hall The Nature and Importance of Marketing Channels How Channel Members Add Value Intermediaries offer producers greater efficiency in making goods available to target markets. Through their contacts experience specialization and scale of operations intermediaries usually offer the firm more than it can achieve on its own. Copyright 2012 Pearson Education Inc. 1- 6 Publishing as Prentice Hall The Nature and .
