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1、MarketingontheWebChapter5TheNetasDistributionChannelMarketingontheWebChapter5TheNetasDistributionChannelLessonObjectivesUnderstandhowtheInternetworksasadistributionchannelLearnaboutsupplychainmanagementontheInternetUnderstandhowtheInternethasincreasedthepowerofbuyersandsupplie
2、rsWhatistheeffectoftheInternetonthelengthofdistributionchannels?HowdoestheInternetalterthepowerrelationshipsamongchannelplayers?Isitsafetoshoponline?QuestionsforDiscussionDistributionChannelDefinition:agroupofinterdependentfirmsthatworktogethertotransferproductfromsuppliertoco
3、nsumer.SupplierSupplierConsumerConsumerIntermediaryDirectModelIntermediaryModelThreePerspectives1.TypesofintermediariesWholesalersRetailersBrokersAgentsThreePerspectives2.FunctionsperformedinthechannelTransactional:contactbuyers,makeawareofproducts,matchproducttobuyerneeds,neg
4、otiateprice,andprocesstransactionsLogistical:physicaldistribution(transportation,storingproduct)Facilitating:marketingresearchaboutbuyersandfinancing.ThreePerspectives3.Flowofproducts(systemsapproach)ProductsInformationFinancesSupplyChainManagement(SCM)SCM:thecoordinationofflo
5、wsMaterial(physicalproduct)Information(demandforecast)Financial(creditterms)LengthofaChannelLengthofachannelreferstothenumberofintermediariesbetweensupplierandconsumer.Disintermediation:theprocessofeliminatingtraditionalintermediaries.Forexample:DownloadingmusicCDsfromtheInter
6、net.MorePowerBuyersHaveaccesstomoreinformationthaneverHaveaccesstomoresuppliersthaneverSuppliers(Iftakeearlylead)ReceivebusinessfromconsumersandfirmseagertoshoponNetCanestablishstructuralrelationshipswithbuyersBusinessModelsAbusinessmodeldefinesarevenuestreamtotheprovider,bene
7、fitstotheconsumer,andarchitecturetodeliverthosebenefitsHowtheorganizationmakesmoney4models:SponsorshipDirectsellingInfomediariesIntermediaries:ClassActivity1.Surveyyourgroup.Askthemtoratetheironlinepurchaseexperienceonascalefrom1to10.Iftheyhaveneverpurchasedonline,findoutwhatp
8、reventsthemfromdoingso.Summarizetheresults.Ifpossible,relatet
