Inter organisational relationships
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Inter-organisational relationships. Marketing Channels Value Chains Value-delivery networks. Marketing Channels. Sets of interdependent organisations involved in making a product available to the end-user customer ( Stern and El Ansary 1996). Supplier. Manufacturer. Distributor. Retailer.

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Inter organisational relationships

Inter-organisational relationships

Marketing Channels

Value Chains

Value-delivery networks


Marketing channels
Marketing Channels

  • Sets of interdependent organisations involved in making a product available to the end-user customer (Stern and El Ansary 1996)

Supplier

Manufacturer

Distributor

Retailer


Channels
Channels

  • Carry not only flows of product but information, promotion, payment and ownership

  • Offer the suppliers ‘contactual efficiency’ in reaching the end customer (Rosenbloom1995)



Channel leadership
Channel Leadership time and place required by the customer (Bucklin)

  • Control = the ability to influence the way the end product is marketed

    • price, image, form, availability etc


  • Power can be based on time and place required by the customer (Bucklin)

    • ability to reward/coerce (economic power)

    • expertness (technological expertise)

    • referent power (ownership of brand)

    • legitimacy (official or accepted status)

      (Hunt and Nevin 1974, Johnson et al 1993)


Dependency
Dependency time and place required by the customer (Bucklin)

  • Availability of alternative channels

  • switching costs

  • contractual obligations


Channel conflict
Channel Conflict time and place required by the customer (Bucklin)

  • Goal incompatibility

  • differences in expectations/perceptions

  • roles and responsibilities

  • domains and decision making


  • allocation of resources time and place required by the customer (Bucklin)

  • poor communication

    - importance of relationships and regular contact between decision makers


The value chain
The value chain time and place required by the customer (Bucklin)

  • All channel members add to the costs and so must also add value to justify their use

  • The VC devised by Porter (1980) to analyse what happens inside companies - where the value is added to the end product

  • Applied by Kogut (1985) to the whole external supply chain (made up of each member’s internal value chain)

  • Marketing is designing and managing a superior value-delivery system to reach target segments (Kotler)


The value added chain terpstra and sarathy 2000
The Value Added Chain time and place required by the customer (Bucklin)Terpstra and Sarathy (2000)

Manufacture

Assembly

Distribution

Marketing

Retailing

Design

Components

  • Specialisation

    • Where does your expertise lie?

    • Where can you add most value to the product?

  • Which activities should be contracted out?

  • Who can best perform them for you?


Formalising the relationship
Formalising the relationship time and place required by the customer (Bucklin)

Distribution is too important to be left to ad-hoc transactions

  • Vertical marketing systems

    • administrative co-ordination

    • contractual - franchises, co-operatives

    • corporate - vertically-integrated companies

      VMS formalise leadership

      control and manage conflict

Commitment


Strategic alliances
Strategic alliances time and place required by the customer (Bucklin)

  • Co-operation between competitors to share

    • markets/technology/marketing/logistics

      A wider term than VMS

      horizontal cooperation and integration

      a partnership of equals

      Consortia

      Joint ventures

      see Johnson and Scholes Ch 7


Network theory
Network theory time and place required by the customer (Bucklin)

  • Looks at markets in terms of relationships, networks and interactions (Gummesson1988)

  • not just suppliers and buyers in a straight-line channel

  • a complex web of influences on the quality of the product (Holmund and Kock 1995)

  • these influences can conflict with each other


Network relationships within the sports channel time and place required by the customer (Bucklin)

Broadcasters

Sponsors

Local media

Sponsors

Investors

Major clubs

NGB

Season

ticket

holders

Other NGBs

Players

Minor clubs

WGB


Elements of a network analysis hakansson and johanson 1992
Elements of a network analysis time and place required by the customer (Bucklin)Hakansson and Johanson 1992

  • Resources needed to create the product

  • Actors - firms, organisations involved

  • Interactions - between actors to create..

  • Activities that produce the product

  • Relationships that develop to ensure long-term commitments

    Draw a network map of a company’s relationships and identify conflicting interests


Systems theory see laws 2001
Systems theory time and place required by the customer (Bucklin)(see Laws 2001)

  • Based on biological, ecological systems

  • each component is affected by and in turn affects the behaviour of the others

  • inputs, processes and outputs

Includes interaction between the industry

and the host society and environment


  • organic growth time and place required by the customer (Bucklin)

    optimum size and efficiency

    decline and decay


Inter organisational relationships what each model reveals
Inter-organisational relationships time and place required by the customer (Bucklin)What each model reveals

  • Inter-dependent channel members

    • efficiency

  • Value-adding chains - value, profit

  • Complex and conflicting networks

    • understanding, trust

  • Organic and evolving systems

    • flexibility, responsiveness


Understanding the dynamics of the industry as a whole will help you understand the needs and perceptions of your client



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