Building Better Distribution – The channel environment

The channel environment

Like every other aspect of marketing work, the construction of effective distribution systems and strategies is affected by environmental factors and related considerations.

The Organisation – Marketers must develop systems and strategies commensurate with their resources stocks and past experience.  Their solutions to distribution problems must fit smoothly into their firm’s organisational structure.

Competitive landscape – Past competitive activity forms certain fairly stable conventions, informal systems and procedures.  These combine with other factors in shaping particular consumer habits, buying patterns, expectations, etc.

Macro environment – We must pay careful attention to macro-economic conditions when framing distribution strategies.  Generally, when the economy is depressed marketers may try to cut distribution (and other) costs, to protect profits while getting their wares to consumers at prices within their buying power.

Legal-Political Contexts and conditions can be extremely significant.  In general, marketers and distributors are wise to stay abreast of events influencing their society’s political system and climate.

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