MKT 2210 Lecture Notes - Lecture 25: Electronic Data Interchange, Order Processing, Supply Chain

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Proitability: determined by the revenues earned minus cost for each channel member and for the channel as a whole, cost is the criical factor of channel proitability, these costs include distribuion, adverising and selling expenses. Cooperaion conlict in markeing channels: channel conlict: arises when one channel member believes another channel member is engaged in behaviour that prevents it from achieving its goals, two types of conlict: Verical conlict: occurs between diferent levels in a markeing channel. Disintermediaion: verical channel conlict that arises when a channel member bypasses another member and sells directly to consumers. Horizontal conlict: occurs between intermediaries at the same level in a markeing channel. Cooperaion in markeing channels: channel captain: a dominant channel member that coordinates, directs, and supports other channel members. A irm becomes a channel captain because it is the channel member with the ability to inluence the behaviour of other members.

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