1 MARKETING CHANNELS The Channel Environment Berman Chapter 2 Version 3.0

2 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

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

4 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

5 C. Final Consumer 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 VALS2 and other typologies

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

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

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

9 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