Dist Channel

A virtual corporation is described as a technology-linked network of companies, suppliers, and customers that are used by a company to outsource non-strategic business functions (Hershkovitz, 2012). The management of Super Bakery, Inc. identified that they could reduce their costs in permanent staff, fixed assets, and working capital (Kimmel,

2) Explain the role of channel intermediaries in the product distribution process. Why is their role important?

A virtual corporation is described as a technology-linked network of companies, suppliers, and customers that are used by a company to outsource non-strategic business functions (Hershkovitz, 2012). The management of Super Bakery, Inc. identified that they could reduce their costs in permanent staff, fixed assets, and working capital (Kimmel,

As mentioned in an earlier assignment, there are three main types of distribution channels. The first is the channel that goes from the producer, then to the wholesaler, then to the retailer or sells to the consumer. The second channel starts with the producer who sells straight to the retailer, who then sells to the consumer. The third channel goes directly from the producer to the consumer. Channels one and two are classed as indirect marketing channels, whereas channel three is a direct marketing channel as it goes straight from producer to consumer.

Distribution channels are organized in several ways: conventional, vertical, horizontal and multichannel (Kern R. 2013). Some of these organizational methods are more structured than others. When a distribution channel deals with more than one independent producer, such as wholesalers and retailers, the channel is known as a conventional distribution channel. (Kern R. 2013) These channels are not normally known to be strong and typically don’t give the customer the quality of product that they deserve. In a vertical marketing system, the retailers, wholesalers and producers, join forces to create a unified front, promoting an individual product (Kern R. 2013). Vertical distribution channels are stronger than the conventional distribution channels because all of the companies involved carry some of the load of power. (Kern R. 2013) In a horizontal distribution channel, companies join up and combine all of their finances and resources, in order to take on more than one company or product (Kern R. 2013). A multichannel distribution channel is where a large corporation uses two or more marketing channels to better target their desired customer segments (Kern R.

vs. exclusive – Giving a limited number of dealers the exclusive right to distribute the

Place is also known as distribution channel. This is where customers can get products from, therefore internet marketing is considered as a distribution channel (i.e. Place) because customers can purchase product online as they do in stores.

32. A channel of distribution is part of a broader network of relationships called a supply chain.

A distribution chain also known as value chain can be described as a set of interdependent organizations or businesses involved in making a product or service available, from producer to end customer (Kotler, et al., 2012).

Marketing channels are the arrangement of intermediaries (wholesales, retailers, and the like) that the firm uses to achieve its marketing objectives. Is the problem discussed in Handy Andy’s marketing channels? Why or why not? Utilizing the factory distributor

A channel alternative is described by three elements: the types of available business intermediaries, the number of intermediaries needed, and the ________.

Apple also uses multichannel distribution system which is a distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments. This is also called a hybrid marketing channel. Multichannel distribution systems offer many advantages to companies facing large and complex markets. With each new channel, the company expands its sales and market coverage and gains opportunities to tailor its products to the specific needs of diverse customers. Multichannel distribution systems, however, are harder to control, and they generate conflict as more channels compete for customers and sales. Without distribution even the best product or service fails.

Strategic Alliances in Distribution Cininta Meirinda Clara Sarah Patricia Adam   Their nature and their motives for creating strategic alliances  Building commitment by creating mutual vulnerability  Building commitment by the management of daily interactions  Decision structures that enhance trust  Moving a transaction through stages of development to reach alliances status  What does it takes and when does it pays to create a marketing channel alliance? STRATEGIC ALLIANCES   What is Strategic Distribution Alliance? Two or more organizations have connections that cause them to function according to a perception of a single interest shared by all parties.

This has proved to be a very successful tactic for companies in marketing. Marketing channels are also used by companies to reach their consumers. They use three types of marketing channels which are communications, distribution and service channels. Communications is important to get the company's message out to the public and this could be in many forms such as the radio, television, the internet, posters and the like. They also need to distribute their products to the consumer and this means they will need a physical location like a store, or be a wholesaler and have others retail your products for you and also sell your products on the internet. Service channels are needed to effect transactions with the consumers and these could be banks for credit card purchases and transportation companies such as UPS to deliver the products to homes and businesses.

On page 345, there is a figure that shows the comparison between vertical and conventional marketing systems. In my opinion, it seems these three companies practice a vertical marketing system. To be more specific I would say they practice contractual VMS. The case author mentions (for Caterpillar) dealers are a key element in what Caterpillar insiders call the “Caterpillar flywheel”—a kind of virtuous circle of success, (for Toyota) Toyota has long