Marketing channel reflection

THE MARKETING CHANNEL ENVIRONMENT

Lecture 3

Part 1 Marke.ng Channel Systems

1

Company

Micro (Internal) Environment

Suppliers Customers

Distributors Competitors

MACRO (External) Environment

Political

Legal

Environment

Technological

Social

Economic

The marketing environment

POLITICAL ECONOMIC

SOCIAL TECHNOLOGICAL

LEGAL ENVIRONMENTAL

PESTLE ANALYSIS A framework that assists in analyzing the external environment and iden?fying the

exis?ng opportuni?es & threats

MACRO (EXTERNAL) ENVIRONMENT

Factor Impact of Factor Poten?al Opportunity or Threat

Poli.cal/legal Increased legisla.on on product liability

Mild threat (-1)

Economic Recession in key overseas markets

Major threat (-4)

Technological LiHle innova.on likely from compe.tors

Neutral impact (0)

Socio-cultural Increased awareness of environmental protec.on issues

Significant opportunity (+5)

COMPETITVE ENVIRONMENT

Factor Impact of Factor Potential opportunity or threat

Competition Intense rivalry in industry/ market place

Critical threat (-5)

Buyers Convergence of customer requirements worldwide

Significant opportunity (+5)

Suppliers Few suppliers dominate the industry

Critical threat (-5)

Threat of new entrants Industry barriers to entry low Threat (-3)

2

TREND TOWARDS PRIVATE LABEL

11

VENEZUELA’S CRISIS EXPLAINED

13

DEFLATION IN JAPAN

15

CHANNEL SURFING QUESTION

If you were a manufacturer (exporter) of goods to a country with extreme infla.on what changes would you make to managing your distribu.on network?

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3

3

5

MOM AND POP – DISTRIBUTION ASIA

22

STARTUPS TARGET INDIAN MOM AND POP SHOPS

23

6

USING DRONES FOR DISTRIBUTION

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7

POLITICAL ENVIRONMENT

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