Neither the sedentary nor the itinerant trader is as familiar to the farmer as the village collector. In the modern business public have assumed important role and their presence in the micro environment of business. Regarding the suppliers, the organisation can think of availing the required material or labour according to its manufacturing programme. It can adopt such a purchase policy which gives bargaining power to the organisation.
Channel members belong to different channel systems, creating potential conflicts. Channel members may disagree on the best methods to attain goals. Can occur between firms at the same level, or between firms at different levels. Most popular VMS, interorganizational relationships boca theatre and automation formalized through contracts that spell out each members rights and obligations. Franchise organizations 1/3 retail sales and 500,000 outlets.Wholesaler sponsored, IGA stores-independent retailers band together under contractual leadership of a wholesaler.
The general business environment, such as the economy, can also affect the marketing channels chosen for products. For example, think about what happens when the value of the dollar declines relative to the currencies of other countries. When the dollar falls, products imported from other countries cost more to buy relative to products produced and sold in the United States. Products “made in China” become less attractive because they have gotten more expensive. As a result, some companies then look closer to home for their products and channel partners.
Segmentation and positioning based on external information and internal strengths will allow the organization to focus on the consumers who are most likely to make a purchase from the firm. Forming contractual agreements in an effort to have better control over their distribution channels. There are a number of common approaches for how the external factors, which describe the macro environment, can be identified and examined.
Designer Michael Graves has a line of products sold exclusively at Target. To purchase those items you need to go to one of those retailers. In these instances, retailers are teaming up with these brands in order to create a sense of quality based on scarcity, a sense of quality that will not only apply to the brand but to the store. How your competitors sell their products can also affect your marketing channels. As we explained, Dell now sells computers to firms like Best Buy so the computers can compete with other brands on store shelves.