marketing channels - module 2: channel roles in a dynamic marketplace
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Preparation for the Marketing Channels exam at Edinburgh Business School Content extracted from the text book by Lou E. Pelton, Dr. David Strutton, and Dr. James R. Lumpkin.TRANSCRIPT
Marketing ChannelsModule 2: Channel Roles in a Dynamic Marketplace
Preparation for the Marketing Channels exam at Edinburgh Business SchoolContent extracted from the text book by Lou E. Pelton, Dr. David Strutton, and Dr. James R. Lumpkin
All pictures used for educational purposes only. No copyright infringement intended.
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2. Channel Roles in a Dynamic Marketplace
The principle of interspecific competition suggests that channel members must fight to achieve competitive advantages. Three outcomes are possible:
CompetitiveSuperiority
RestrictiveRanges
CharacterDisplacement
2.1 Channel Behaviors in Competitive Environments
Interspecific Competition in Marketing ChannelsBusiness life, unlike life in the mythological jungle, is first of all
fundamentally cooperative. It is only within the bounds of mutually shared concerns that competition is possible.
2.1 Channel Behaviors in Competitive Environments
Changing Environments: A Shared ConcernDifferential advantages emerge from an organization’s distinctive
characteristics, if these properties set it apart from competitors in ways that prove enticing to customers.
2.1 Channel Behaviors in Competitive Environments
Diversity in Complex EnvironmentsEnvironmental diversity refers to the variety of environmental forces facing a channel member.
Supplier Relationships
CustomerRelationships
LateralRelationships
2.2 Channel Roles in the Exchange System
Three types of channel relationships exist:
2.2 Channel Roles in the Exchange System
Channel roles are the sets of activities or behaviors assigned
to each intermediary in a channel system.
2.2 Channel Roles in the Exchange System
Role identity specifies the traits of an individual or organization that are considered
appropriate to and consistent with the performance of a given channel role.
2.3 Supplier Relationships
Wholesaler Classification:Merchant wholesalers
Manufacturer’s sales organizations (MSOs)Agents (also known as brokers)
Commission merchants
2.4 Customer Relationships: Changing technology and trends
more electronic shoppingmore mail-order catalog/direct mail
more manufacturer’s outletshypermarkets
2.5 Lateral Relationships
Lateral relationships feature a sort of ‘co-opetition’ – note how the term
blends cooperation with competition.
2.6 Establishing Channel Role Identities: SIFTing Process
The overriding purpose of channels is to serve
consumer and end-user needs.
2.6
ServicesProvision of value-added services.
InnovationIntroduction of new methods or technologies to strengthen exchange relationships within channels.
FlexibilityAbility to successfully accommodate exchange partners’ needs as environmental and process conditions change.
TimingTimely delivery, a key component of channel efficiency, is a primary part of role identity.
Establishing Channel Role Identities: SIFTing Process
Picture sources:
http://compacttravels.files.wordpress.com/2009/11/floating-market-3.jpg
http://blogs.edweek.org/teachers/coach_gs_teaching_tips/Classroom%20Competition%20Arm%20Wrestling.jpg
http://www.sanfordfl.gov/images/pool/pool_race.jpg
http://www.3rdidea.com/home/wp-content/uploads/2011/11/stand_out_in_a_crowd.jpg
http://images2.wikia.nocookie.net/__cb20111016021805/lego/images/7/76/Series7Pic.jpg
http://www.freakingnews.com/pictures/77500/Barack-Obama-and-Michelle-Changing-Roles-77657.jpg
http://fc03.deviantart.net/fs71/i/2010/037/1/5/we_are_all_the_same_by_user11.jpg
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