INMA_A01.QXD

Examples which illustrate the importance of value networks to Internet marketing are the

affiliate networks and ad networks described in Chapter 8. Rather than working directly

with individual publishers to drive visitors to a site, an online merchant will work with

an affiliate network provider such as Commission Junction (www.cj.com) or ad network

such as Miva (www.miva.com) which manages the links with the third parties.

New channel structures

Channel structuresdescribe the way a manufacturer or selling organisation delivers

products and services to its customers. The distribution channel will consist of one or

more intermediaries such as wholesalers and retailers. For example, a music company is

unlikely to distribute its CDs directly to retailers, but will use wholesalers which have a

large warehouse of titles that are then distributed to individual branches according to

MARKETPLACE

Figure 2.6 Members of the value network of an organisation

Source: Adapted from Deise et al. (2000)

Core value chain

activities

Strategic core VC partners

Non-strategic service partners

*includes IS partners, for example:


Strategic outsourcer


System integrator


ISP/WAN provider


ASP provider

Manufacturing

Value chain integrators*

Product

warehousing

Inbound

logistics

Human

resources

Value chain integrators*

Admin

e.g. travel

Fulfilment

Downstream

VC partners

Sell-side

intermediaries

Suppliers

Upstream

VC partners

Buy-side

intermediaries

Finance

Channel structure
The configuration of
partners in a
distribution channel.