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Explain what supply chain management means in marketing channels as seen and explained in class with examples. Analyze the key elements, processes and technologies related to the management of supply chains in our modern times, as seen and explained in class with examples (2 pages maximum). The Nature and Importance of Marketing Channels FIGURE 12.1 How a Distributor Reduces the Number of Channel Transactions Manufacturer Customer Manufacturer Customer 2 3 Manufacturer 5 Customer Manufacturer Distributor Customer Marketing channel intermediaries make buying a lot easier for consumers. Again, think about life without grocery retailers. How would you go about buying that 12-pack of Coke or any of the hundreds of other items that you now routinely drop into your shopping cart? 6 Manufacturer Customer Manufacturer Customer 9 A. Number of contacts without a distributor B. Number of contacts with a distributor Channel Behavior and Organization Producer FIGURE 12.3 Comparison of Conventional Distribution Channel with Vertical Marketing System Producer Retailer Wholesaler Wholesaler Retailer Vertical marketing system-here’s another fancy term for a simple concept. It’s simply a channel in which members at different levels thence, vertical) work together in a unified way (hence, system to accomplish the work of the channel Consumer Consumer Conventional marketing channel Vertical marketing system The Nature and Importance of Marketing Channels FIGURE | 12.2 Consumer and Business Marketing Channels Using direct channels, a company sells directly to consumers (no surprise there), Examples: GEICO and Amway Using indirect channels, the company uses one or more levels of intermediaries to help bring its products to final buyers. Examples: most of the things you buy-everything from toothpaste to cameras to cars, Producer Producer Producer Producer Producer Producer Wholesaler Manufacturer’s representatives or sales branch Retailer Retailer Business distributor Business distributor Consumer Consumer Consumer Channel 1 Channel 2 Channel 3 Business Business Business customer customer customer Channel 1 Channel 2 Channel 3 B. Business marketing channels A. Consumer marketing channels

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