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Channel coordination (or supply chain coordination) aims at improving supply chain performance by aligning the plans and the objectives of individual enterprises. It usually focuses on inventory management and ordering decisions in distributed inter-company settings.
Before designing a distribution system, the supplier needs to determine what distribution channel to achieve in broad terms. The approach to distributing products or services depends on a number of factors including the type of product, especially perishability; the market served; the geographic scope of operations and the firm's overall mission and vision.
A marketing channel is a useful tool for management, [2] and is crucial to creating an effective and well-planned marketing strategy. [3] Another less known form of the marketing channel is the Dual Distribution [4] channel.
All of these treatments have one unifying factor which is the ability to influence the market price by altering the supply of the good or service through its own production decisions. The most discussed form of market power is that of a monopoly, but other forms such as monopsony and more moderate versions of these extremes exist.
Each distributor must account for factors such as channel conflict, cross-product cannibalization, and competitive actions. Revenue Management has proved useful to distributors in promotion analysis and negotiated contracts. [34] Medical products and services – deal with large fluctuations in demand depending on time of day and day of week ...
Another channel for direct digital marketing is in-product communication (or in-product marketing), which delivers marketing content directly to a user's internet-connected device or software application. In-product marketing content is often very similar to that of email marketing campaigns, but the segmentation and delivery is more targeted.
This can also be termed as a situation when a producer or supplier bypasses the normal channel of distribution and sells directly to the end user. Selling over the Internet while maintaining a physical distribution network is an example of channel conflict. Channel conflict comes in many forms.
To be effective, multichannel marketing needs to be supported by good supply chain management systems, so that the details and prices of goods on offer are consistent across the different channels. It might also be supported by a detailed analysis of the return on investment from each different channel, measured in terms of customer response ...
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