Channel Roles in a Virtual Marketplace

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Channel Roles in a Virtual Marketplace
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Channel Behaviors in Competitive Environments

• Competing in a virtual marketplace
• Changing environments
• Diversity in complex environments
• Disintermediation.

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1. Competing in a Virtual Marketplace

• Competing businesses need to find niches
• The Halo effect
• Virtual grocery stores compete with bricks and
  mortar stores

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2. Changing Environments A Shared Concern

• Businesses pursue a differential advantage
  strategy
• Differential advantage strategies are pursued
  up and down the channel

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3. Diversity in Complex Environments

• Changing environments requires channel members to
  adapt by modifying products, entering new
  channels, or using old channels for new products.

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4. Disintermediation Transforming Channel Roles

• Process of eliminating the middleman from a
  transaction.
• But
• Human interaction
• Human experience
• Human relationships
• Hypermediation

Snap-On Tools
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Wholesaler Role Classifications
Take Physical Possession
Take Title to Goods
Negotiation Function Performed
Promotional Function Performed
Wholesaler Classification
Merchant Wholesaler Yes Yes Yes Yes Manufacturer
s Sales No Yes Yes Yes Organization Agents/Broke
rs No No Yes Yes Commission Merchants Yes No Yes
Yes
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Customer Relationships

• Retailers
• Manage supplier relationships
• Act as channel intermediary
• Final link in distribution channel
• Dual function in marketing channel
• Selling agent for supplier
• Closest link to consumer

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Traditional Retailing Formats
Convenience Store
Specialty Store
Discount Store
Department Store
Supermarket
Hybridization
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The New Retailing Paradigm
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Lateral Relationships

• Partnerships between firms operating at the same
  channel level
• Co-opetition

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Establishing Channel Role Identities

• SIFTing
• Services
• Innovation
• Flexibility
• Timing