Business to Business Partnerships, Relationships and Supply Chain
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Business to Business Partnerships, Relationships and Supply Chain
- 4. integration
- 7. strategy: licensing licensor will grant an organization a license to produce the product, use the brand name etc in return they receive a royalty payment.
- 8. strategy: franchise similar to licensing, only instead of royalties they are paid a fee, typically more for whole business model vs product lines.
- 9. strategy: alliances & joint ventures networks of companies that collaborate in the achievement of a given project or objective
- 12. systems concept
Notes de l'éditeur
- Channel Relationship A channel relationship can be linked to a marriage in that it brings together two independent entities that have shared goals. For the relationship to work, each party must be open about its expectations and communicate changes perceived in the other’s behaviour that might be contrary to the agreement. Channel Design need to design it, to simplify it so you don't have mom vs dad issues 14.1, pg 337
- economic utility of a channel Scenario: The Aspirin Imagine it’s 2 a.m. on a Sunday evening; the end of a well-partied weekend. You go to your medicine cabinet, reach for the bottle of aspirin; it doesn’t rattle. (Who put the empty bottle back on the shelf? Better yet, who used the last one without replacing the bottle? Blame it on roommates!) You now have two choices: Choice #1. Wait until midmorning when Costco opens; run in and get “a gallon of aspirin for $5” (as I like to describe it). Good deal. Choice #2: walk/crawl/stumble to the corner 24-hour convenience store (there are always “C” stores near college apartments), pay $5 for a little yellow (you know it works wonders) package of 10 aspirin. A ripoff? Depends. Your head is throbbing. You really want and will “give almost anything” for two aspirin. The C store has provided form, time, place and possession (they take your credit card) and deserves to earn a margin that covers the costs of the economic utility. Of course, you could let your head throb until Costco opens ... Marketing Channels create Economic Utility: Form: The usable quantity or mode of the product most preferred by the customer. Time: The availability of the product when the customer needs it. Place: “Locational Convenience,” the availability of the product where the customer needs it. Possession: Methodology by which the customer obtains ownership or the right to use the product or service.
- Physical Distribution Part of logistics management, physical distribution is concerned with the transporting of merchandise, raw materials, or by-products, such as hazardous waste, from the source to the customer. A manager of physical distribution must also assess and control the cost of transporting these goods and materials, as well as to determine the most efficient way to store them, which usually involves some form of warehousing. Hence, physical distribution (PD) is concerned with inventory control, as well as with packaging and handling. Customer relations, order processing, and marketing are also related activities of PD. In essence, physical distribution management (PDM) involves controlling the movement of materials and goods from their source to their destination. It is a highly complex process, and one of the most important aspects of any business. PDM is the "other" side of marketing. While marketing creates demand, PDM's goal is to satisfy demand as quickly, capably, and cheaply as possible.
- Integrated distribution Requires the marketer to make an investment in the foreign market Backwards Vertical Integration Henry Ford developed his own iron ore mining operation, steel mills, glass factories, tire manufacturing, etc. “ Forward” Vertical Integration Apple owns its own retail channels. + - Economies of scale Lack of flexibility Complete control of activities Significant investment Reliability and availability Slow to innovate (myopia)
- Favoring Distributors Concept Product requires local stock. Product line is small, unable to support direct sales. Product is somewhat generic. Product has low unit value. Product is near end of PLC. Customers are widely dispersed. Local repackaging, sizing, or fabrication is required. Market has many small-volume buyers. Product requires extensive sales effort directed at buying professionals. Start-up venture or established company is entering a new market. Competition uses distributors. Customers prefer distributors. Not Favoring Product is highly customized. Product is new or innovative. Product is technically sophisticated. Significant missionary selling is required. Manufacturer requires control over product application. Large buyers are geographically concentrated. to spread the financial risk with the intermediary rather than across a large selection of possibly smaller customers; to share the selling risk to the extent a good channel intermediary should have an in-market reputation, relationships, etc. with the right buyers; to enhance the collection of market information by utilizing a channel intermediary sales staff as an addition to any other sources being utilized.
- http://seekingalpha.com/article/1449211-could-tumblr-be-the-next-instagram?source=yahoo
- Total cost concept The Total Cost acquisition and Ownership of the item must be optimum. Each of these costs represent an opportunity for reduction. The basic price of the supplier cannot be reduced. The margins can be played upon. The opportunity for reduction therefore lies in the supply chain - packing, forwarding, transportation, wastages, handling, storing, etc. Efficient supply chain management helps in reducing the Total Cost of Acquisition (TCA) of an item.
- Systems Concept Based on the notion that materials-flow activities within and outside of the firm are so extensive and complex that they can be considered only in the context of their interaction. In order for the systems concept to work, information flows and partnership trust are instrumental.
- Tradeoff concept A trade-off (or tradeoff) is a situation that involves losing one quality or aspect of something in return for gaining another quality or aspect. It implies a decision to be made with full comprehension of both the upside and downside of a particular choice Brainstorm things that could be traded off.
- Tradeoff concept A trade-off (or tradeoff) is a situation that involves losing one quality or aspect of something in return for gaining another quality or aspect. It implies a decision to be made with full comprehension of both the upside and downside of a particular choice Brainstorm things that could be traded off.