Which one of the following is a system of partnerships and alliances that a firm creates to source, augment, and deliver its offerings ?
Value network
Value network — option 1. The wording is Kotler’s definition verbatim.
What a value network is. It is the whole system of partnerships and alliances a firm builds in order to source, augment and deliver what it offers. Its members reach well beyond the firm’s own channel :
| Member | Role |
|---|---|
| Suppliers, and their suppliers in turn | Source the inputs |
| The firm itself | Transforms them |
| Distributors, dealers, retailers | Deliver to the customer |
| University laboratories, research agencies, technology partners | Augment the offering with knowledge and innovation |
| Advertising agencies, logistics providers, banks, insurers | Facilitate the flows |
| Customers themselves | Co-create value, especially in services and digital products |
The three verbs in the question are the giveaway. Source reaches upstream to suppliers, deliver downstream to intermediaries, and augment sideways to partners who add capability. Only a value network spans all three directions; every other option covers just one of them.
| Option | What it actually is |
|---|---|
| 2. Omnichannel marketing | Using multiple channels — store, website, app, telephone — in a seamlessly integrated way so the customer’s experience carries across them. A matter of customer-facing channels only |
| 3. Integrated marketing channel system | Coordination among the firm’s multiple downstream distribution channels so they do not conflict |
| 4. Direct marketing channel | A zero-level channel — the firm sells straight to the consumer with no intermediary at all. The narrowest of the four |
Why the concept matters. It marks the shift from thinking of the firm as a lone competitor to seeing competition as taking place between networks rather than between firms. Managing the network is therefore itself a source of advantage, and the practice of demand chain planning — starting from the target customer and working backwards through the network — follows directly from it.
Hence, the answer is Value network.
Similar Questions
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Producers of convenience goods typically prefer
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Important Questions from Marketing channels
A manufacturer, to market its products, focuses on the following marketing channel alternatives :
(i) Telemarketing
(ii) Distributors
(iii) Sales force
(iv) Internet
(v) Retail stores
(vi) Value-added partners
Select the code of correct sequence of the channel alternatives in order of increasing cost per transaction.
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- A price ending in an odd number or a price just under a round number.
The whole channel concept for International Marketing is represented as :
'The manufacturer threatens to withdraw a resource or terminate a relationship if intermediaries fail to cooperate', refers to which one of the following channel power?
