mc10 1

1
Managing Uncertainty in the Environment
2
Channel Environment

• Continual change
• Variability
• Potency
• Distinctiveness

3
Channel Entropy and the Exosystem

• Uncertainty creates need
• Environmental scanning
• Appraisal
• Prediction
• Monitoring

4
EntropyDisorder, uncertainty, and wasted effort
present in any physical environment

• Working systems
• Input
• Transformation
• Output
• Adjustment
• Market intelligence
• Information overload
• Information accuracy

5
Market Intelligence
6
Channel Dynamism
7
Decision Support Systems

• Strategic Considerations
• Current/future trends regarding market size.
• Customer preferences that affects wants and
  perceived needs.
• Broad industry directions.
• Success or failure of current channels.

8
Decision Support System
Data systems, tools and techniques designed for
environmental scanning
9
The Channel Exosystem
10
Types of Competitive Channel Environments
VERTICAL
HORIZONTAL
SYSTEM
NETWORK
11
Economic Environment
Derived Demand Demand for goods comes from
consumers.
Joint Demand Two or more items are used to
produce an item.
12
Economic Environment
Economic Infrastructure
Consumer Buying Power
The economic environment is shaped by conditions
within four general economic factors.
Currency Stability
National Trade Policies
13
Technological Environment
14
Sociocultural Environment
The point of connection among channel members,
society, and its culture.
Channel Behavior Influences
15
The Political Economy Framework
16
Trends and Counter-Trends

• Pursuit of Happiness
• Ostentation Nation
• Counter-Enough is Enough
• Past Perfect
• Counter-the Power of Now

17
Trends and Counter-Trends

• Economics Shaping Culture
• Partnering Supersized
• Counter-Enter the Entrepreneurs
• Eastern Sun Rising
• Counter-Countless countertrends
• Cultural Collective
• Counter-Individual Isolationism

18
Trends and Counter-Trends

• Slight of Hand Society
• Counter-Shifting Paradigm
• Push for Mono-Mind
• Counter-New Solutions, New Systems
• Surveillance Society
• Migrating Boomers
• Counter-Block the Move

19
Wal-Mart

• Dollar Stores
• Bad for Cities?
• Jobs
• Low Prices
• Tax Revenue