Professional Documents
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GAUSES PRINICIPLE
Gauses Priniciple of Interspecific competition relates to channel roles Two Protozoa Need eight resources to survive Both struggle to survive If resources are limited both can survive Not enough resources one have to die
COMPETITIVE SUPERIORITY
A Channel member may emerge as a competitive superior It can force rivals to take the exit Survival of the fittest
RESTRICTIVE RANGES
Channel member may differ across distinctive environmental conditions Some prosper in one place while others flourish in different domains Each member recognize its limitation in environments and choose to compete in a different environment
y
Eg. Sears take of themsleves from financial market and focused on retail business
CHARACTER DISPLACEMENT
Channel members rapidly evolve in diverse ways Taking on different properties to minimize direct competition Each corporate must continuously adapt to dynamic channel environments
Consider Sears, Kmart, Wal-Mart and Radio Shack. There stores overlap in the merchandise they sell, the customers they serve, and the areas where they operate. But to survive, each of there retailers has had to differentiate itself in important ways
React while environments are changing to achieve its current position In this process channel member attempt to differentiate itself from other member operating at the same level
y
Eg: Made in USA Focusing on quality rather than the price by saying its better than the imported goods.
SUPPLIER RELATIONSHIP
Involve three principal channel roles: y Source
Sources firms supply raw material Generate components parts, process materials, or finished goods Market products for resale or institutional use
Producers
Wholesalers
It was based on branded products Wholesalers are also performing sales and marketing functions that has been assigned to producers Take physical possession of the goods they market but they not assume ownership
WHOLESALERS CLASSIFICATION
Wholesaler Classification Merchant Wholesaler Manufacturers Sales Organization Agents /Brokers Commission Merchants Take Physical Possession Yes No Take Negotiation Title to Function Goods Performed Yes Yes Yes Yes Promotional Function Performed Yes Yes
No Yes
No No
Yes Yes
Yes Yes
CUSTOMER RELATIONSHIP
Retailers ( Store and Nonstore) y Consumers (Individual and Organizational)
y
Department Stores Specialty Stores Convenience Stores Discount Stores Variety Stores Supermarket
LATERAL RELATIONSHIP
Involve partnership between firms operating at the same channel level Based on cooperation and trust Shared goals and work together to improve design, quality, delivery, promotional or manufacturing Eg- Star Alliance
Customer Relationships
Lateral Relationship
DISCUSSION QUESTION
Gauses Principle of Interspecific Competition Compare the role of Wholesalers and Retailers Role Expectation