Developing and Implementing a Marketing Plan

12/7/2020 Distribution and Supply Chain Strategy

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Distribution and Supply Chain Strategy

A company uses its distribution channels to promote, sell, and deliver its products or

services to end users. These channels may include wholesalers, distributors, retailers, and

agents. The supply chain is a longer channel that comprises raw materials, individual

components, and final products that are delivered to customers. Companies only take part

of the overall value that is generated at each step of the supply chain. When a company

expands downstream or upstream or acquires competitors, it is trying to gain a larger

portion of the overall supply chain value (Kotler & Keller, 2015).

It is common for a company to perceive itself as an integral unit of a value network

composed of the formal and informal connections the company uses to purchase, modify,

enhance, and deliver its final product to its end users. Value networks are complex and

fluid, and change over time. A value network consists of the numerous other businesses

the company works with vertically within its distribution channel and horizontally across

other businesses that contribute to product creation and dissemination. Value networks

strategically combine capabilities, allowing companies to reduce costs and maximize

efficiency at every step of their supply and distribution chains, making strategic alliances

crucial (Marshall & Johnston, 2011).

References

Kotler, P., & Keller, K. (2015). Marketing management (15th ed.). Upper Saddle River, NJ.

Pearson.

Marshall, G. W., & Johnston, M. W. (2011). Essentials of marketing management. New

York, NY: McGraw-Hill.

Learning Topic

12/7/2020 Distribution and Supply Chain Strategy

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Resources

Using Supply Chains to Create Value for Customers

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chainstocreatevalueforcustomers.html?ou=516043)

Using Marketing Channels to Create Value for Customers

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marketing-channelstocreatevalueforcustomers.html?ou=516043)

The Impact of Strategy on Supply Chain and Forecasting

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