Marketing 624

Channels of Distribution Management

Marketing Channel Environment

Dr. Bert Rosenbloom Professor of Marketing and
Rauth Chair in Electronic Marketing

Environment of Marketing
Channels
Economic

Competitive
Socio Cultural - Demographic

Technological
Legal

The Impact of Environment in a

Marketing Channel Context
Producers and
Manufacturers

Environment
Economic
Sociocultural
Competitive
Legal
Technological

Member
participants

Locus of
Channel
Management

Intermediaries

Target Markets
Nonmember
participants

Facilitating
Agencies

Channel managers
analysis of
environmental impact
must include all
channel participants

Economic Environment

Recession
Inflation
Deflation
Other Economic Issues

The Competitive Environment

Horizontal Competition
Intertype Competition
Vertical Competition
Channel System Competition

Socio Cultural Demographic

Environment
Key Findings of
Worldwide Research
Marketing channel structure reflects
the socio cultural demographic
environment within which it exists

Technological Environment

Technology is powerful, but remember the

other two dimensions:

Economic: Is the technology cost effective?

Behavioral: Will customers really use it?

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.

Basic Antitrust Legislation in

U.S.
Sherman Act
Clayton Act
Federal trade Commission Act
Robinson-Patman Act

1890
1914
1914
1936

Celler-Kefauver act

1950

Micro or Managerial Perspective

Vs.
Macro or Societal Perspective

These often come into direct Conflict in

the formulation and implementation of
Marketing channel strategy

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