Marketing 624

1
Marketing 624
Channels of Distribution Management
Marketing Channel Environment
Dr. Bert Rosenbloom Professor of Marketing
and Rauth Chair in Electronic Marketing
2
Environment of Marketing Channels
Economic
Competitive
Socio Cultural - Demographic
Technological
Legal
3
The Impact of Environment in a Marketing Channel
Context
Producers and Manufacturers

• Environment
• Economic
• Sociocultural
• Competitive
• Legal
• Technological

Locus of Channel Management
Member participants
Intermediaries
Target Markets
Channel managers analysis of environmental
impact must include all channel participants
Facilitating Agencies
Nonmember participants
4
Economic Environment

• Recession

• Inflation

• Deflation

• Other Economic Issues

5
The Competitive Environment

• Horizontal Competition
• Intertype Competition
• Vertical Competition
• Channel System Competition

6
Socio Cultural Demographic Environment

• Key Findings of Worldwide Research

• Marketing channel structure reflects the socio
  cultural demographic environment within which
  it exists

7
Technological Environment
Technology is powerful, but remember the other
two dimensions

• Economic Is the technology cost effective?
• Behavioral Will customers really use it?

8
The Legal Environment
Basic Principle

• Competition is a good thing
• Monopoly is a bad thing

Therefore Laws and regulations are aimed at
promoting competition and
reducing monopoly power.
9
Basic Antitrust Legislation in U.S.

• Sherman Act 1890
• Clayton Act
  1914
• Federal trade Commission Act 1914
• Robinson-Patman Act 1936
• Celler-Kefauver act
  1950

10
Micro or Managerial Perspective
Vs.
Macro or Societal Perspective
These often come into direct Conflict in the
formulation and implementation of Marketing
channel strategy
11
Legal Issues in Channel Strategy and Management

• Dual (or Multi-Channel) Distribution
• Exclusive Dealing
• Full-Line Forcing
• Price Discrimination
• Price Maintenance (Fair Trade)
• Refusal to Deal
• Resale Restrictions
• Tying Agreement
• Vertical Integration