1.1 LEARNING OBJECTIVES
LO 11-1 Define a value network and how organizations operate within this approach.
LO 11-2 Identify various types of intermediaries and distribution channels.
LO 11-3 Understand the impact of intermediary contributions via physical distribution
functions, transaction and communication functions, and facilitating functions.
LO 11-4 Explain the different types of vertical marketing systems.
LO 11-5 Utilize suitable criteria to select appropriate channel approaches.
LO 11-6 Identify the logistics aspects of supply chain management.
LO 11-7 Understand the role of retailing in delivering the value offering to the customer.
LO 11-8 Recognize the characteristics and types of store retailers.
LO 11-9 Recognize the characteristics and types of non-store retailers.
LO 11-10 Describe the evolving role of e-commerce.
1.2 Chapter Outline
I. THE VALUE CHAIN AND VALUE NETWORKS
II. CHANNELS AND INTERMEDIARIES
III. FUNCTIONS OF CHANNEL INTERMEDIARIES
Physical Distribution Functions
Breaking Bulk
Accumulating Bulk and Sorting
Creating Assortments
Reducing Transactions
Transportation and Storage
Transaction and Communication Functions
Facilitating Functions
IV. DISINTERMEDIATION AND E-CHANNELS
V. VERTICAL MARKETING SYSTEMS
Corporate Systems
Contractual Systems
Administered Systems
VI. CHANNEL BEHAVIOR: CONFLICT AND POWER
VII. SELECTING CHANNEL APPROACHES
Distribution Intensity
Intensive Distribution
Selective Distribution
Exclusive Distribution
Channel Control and Adaptability
Prioritization of Channel Functions – Push versus Pull
Strategy
VIII. LOGISTICS ASPECTS OF SUPPLY CHAIN
MANAGEMENT
Order Processing
Warehousing and Materials Handling
Inventory Management
Transportation
IX. LEGAL ISSUES IN SUPPLY CHAIN MANAGEMENT
Exclusive Dealing
Exclusive Territories
Tying Contracts
X. RETAILING
The Role of Retailing
Offer Variety for Consumers
Separate Large Product Volume into Consumer Purchase
quantities
Maintain Inventory Levels
Make Additional Services Available to Consumers
Characteristics of Retailers
Type of Merchandise
Assortment
Services Imparted to Consumers
Differences in the Value Equation
STORE RETAILERS
Food Retailers
General Merchandise Retailers
Advantages of Store Retailing
NON-STORE RETAILING
Catalog retailers
Direct Selling
Television Home Shopping
Vending Machines
XI. ELECTRONIC COMMERCE
Business to Consumer – E-tailing
Advantages of Electronic Retailing
Disadvantage of Electronic Retailing
Business-to-Business Electronic Commerce
SUMMARY