Preparation for the Marketing Channels exam at Edinburgh Business School Content extracted from the text book by Lou E. Pelton, Dr. David Strutton, and Dr. James R. Lumpkin.

1. Marketing Channels
Module 2: Channel Roles in a Dynamic Marketplace
@sebinomics
Preparation for the Marketing Channels exam at Edinburgh Business School
Content extracted from the text book by Lou E. Pelton, Dr. David Strutton, and Dr. James R. Lumpkin
All pictures used for educational purposes only. No copyright infringement intended.

2. 2. Channel Roles in a Dynamic Marketplace
The principle of interspecific competition suggests that channel members must fight
to achieve competitive advantages. Three outcomes are possible:
Competitive
Superiority
Restrictive
Ranges
Character
Displacement

3. 2.1 Channel Behaviors in Competitive Environments
Interspecific Competition in Marketing Channels
Business life, unlike life in the mythological jungle, is first of all
fundamentally cooperative. It is only within the bounds of
mutually shared concerns that competition is possible.

4. 2.1 Channel Behaviors in Competitive Environments
Changing Environments: A Shared Concern
Differential advantages emerge from an organization’s distinctive
characteristics, if these properties set it apart from competitors in ways
that prove enticing to customers.

5. 2.1 Channel Behaviors in Competitive Environments
Diversity in Complex Environments
Environmental diversity refers to the variety of
environmental forces facing a channel member.

6. 2.2 Channel Roles in the Exchange System
Three types of channel relationships exist:
Supplier
Relationships
Customer
Relationships
Lateral
Relationships

7. 2.2 Channel Roles in the Exchange System
Channel roles are the sets of
activities or behaviors assigned
to each intermediary in a
channel system.

8. 2.2 Channel Roles in the Exchange System
Role identity specifies the traits of an
individual or organization that are considered
appropriate to and consistent with the
performance of a given channel role.

9. 2.3 Supplier Relationships
Wholesaler Classification:
Merchant wholesalers
Manufacturer’s sales organizations (MSOs)
Agents (also known as brokers)
Commission merchants

10. 2.4 Customer Relationships: Changing technology and trends
more electronic shopping
more mail-order catalog/direct mail
more manufacturer’s outlets
hypermarkets

11. 2.5 Lateral Relationships
Lateral relationships feature a sort of
‘co-opetition’ – note how the term
blends cooperation with competition.

12. 2.6 Establishing Channel Role Identities: SIFTing Process
The overriding purpose of
channels is to serve
consumer and end-user
needs.

13. 2.6 Establishing Channel Role Identities: SIFTing Process
Services
Provision of value-added services.
Innovation
Introduction of new methods or technologies to strengthen
exchange relationships within channels.
Flexibility
Ability to successfully accommodate exchange partners’
needs as environmental and process conditions change.
Timing
Timely delivery, a key component of channel efficiency,
is a primary part of role identity.

14. Picture sources:
http://compacttravels.files.wordpress.com/2009/11/floating-market-3.jpg
http://blogs.edweek.org/teachers/coach_gs_teaching_tips/Classroom%20Competition%20Arm%20Wrestling.jpg
http://www.sanfordfl.gov/images/pool/pool_race.jpg
http://www.3rdidea.com/home/wp-content/uploads/2011/11/stand_out_in_a_crowd.jpg
http://images2.wikia.nocookie.net/__cb20111016021805/lego/images/7/76/Series7Pic.jpg
http://www.freakingnews.com/pictures/77500/Barack-Obama-and-Michelle-Changing-Roles-77657.jpg
http://fc03.deviantart.net/fs71/i/2010/037/1/5/we_are_all_the_same_by_user11.jpg
http://insidemagazine.net/uploads/3/0/1/0/3010458/8387304_orig.jpg
http://www.retail-systems.com/blog/wp-content/uploads/2010/02/bldcacolin10_20.jpg
http://www.photos-public-domain.com/wp-content/uploads/2011/11/both-ways-arrow-street-sign.jpg

15. @sebinomics