MARKETING CHANNELS The Channel Environment Berman Chapter 2

MARKETING CHANNELS The Channel Environment Berman Chapter 2 Version 3. 0 1

The Channel Environment • • A. Overview B. The Final Consumer: Demographics C. The Final Consumer : Life Styles D. Channel Competition E. The Economy F. The Legal Environment G. The Technological Environment 2

A. Overview of the Channel Environment • Building scenarios • Developing the Contingency Plan – scenarios – contingency plan – contingency event – trigger point 3

B. The Final Consumer: Demographic Characteristics • Population growth – penetration, development, micromarketing • Age distribution • Income distribution – money income, real income • Number of households • Marital status • Working women 4

C. Final Consumer Life Styles • Poverty of time • Greening of America – ecological life cycle of a product – life cycle costing • Value orientation – factory outlets, off-price chains, outlet malls, buying clubs, Internet marketing • Blurring of gender roles • Component lifestyles • VALS 2 and other typologies 5

D. Channel Competition • Horizontal competition • Intertype competition – multiple channels, scrambled merchandising • Vertical competition – forward and backward integration • Vertical Marketing Systems – difference from conventional systems 6

E. The Economy • Measuring economic trends – unemployment rates – consumer confidence surveys – derived demand • Relative value of the dollar – foreign exchange rates – gray markets 7

F. The Legal Environment • Product related issues • Price related issues • Advertising related issues 8

G. The Technological Environment • Recording sales and monitoring inventory – bar code scanners, point of sale terminals, electronic data interchange, quick response inventory management • Computer based sales support • Technical problem solving systems • Video ordering systems 9