Channel Or Distribution Channel Case Study
There are two main channels first one is a direct marketing channel: a marketing channel that has no intermediaries. Secondly, indirect marketing channels are channels containing one or more intermediaries. Channels are behavioral systems that made of real companies and people, who interact to accomplish common goals. Each channel member depends on others and they behave differently, which can lead to channel conflict: described as disagreement among marketing channel members on goals, roles and rewards, identified two types of conflicts. Horizontal conflict occurs among firms at the same channel level. Vertical conflict is between different levels of the same channel3.
One channel member may own the other members, or has contracts with them or exert pressure so that they all cooperate. There are three major types of VMSs4:
1. Corporate VMS is a vertical marketing system where leaders manage all stages of production and distribution processes.
2. Contractual VMS is a vertical marketing system in which independent firms at different levels of production and distribution join together through various types of contracts and or agreements. The most common example of a contractual VMS is the franchise organization: where channel member (franchisor) connects several stages in the production and distribution …show more content…
Warehousing. Distribution centers and automation designed to receive goods from various plants and suppliers, take orders, fill them efficiently and deliver goods to customers in a timely manner8.
2. Stock and inventory management involves striking the right balance between demands and deliveries. Just-in-time logistic systems involve small stocks, while new stock arrives exactly when needed.
3. Transportation cost added can impact the pricing of products, delivery times and the condition of the goods. It can be via road, but also via railways, water shipments and air carriers.
Integrated logistics management is the logistics concept that emphasizes teamwork, both inside the company where Cross-functional teamwork plays such a role of coordination and among all the marketing channel organizations, to streamline the entire process and maximize the performance of the entire distribution system. Companies should not only advance their logistics, but also their logistic corporations. Third-party logistics (3PL) provides all the logistic vehicles required to get a client’s product to the