By Luca Pellegrini, Srinivas K. Reddy
Covers the idea and perform of nationwide and foreign retail and advertising channels, and offers a structural review of the producer-distributor dating in addition to analyses of channel regulate and administration. This ebook can be of curiosity to complex scholars and researchers in retail, advertising, and company stories.
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Additional info for Retail and Marketing Channels: Economic and Marketing Perspectives on Producer-Distributor Relationships
E. (1977) 'From entry barriers to mobility barriers', Quarterly Journal of Economics 91: 241-61. W. S. (1980) The impact of advertising on the price of consumer products', Journal of Marketing 44: 17-35. Gattorna, J. (1978) 'Channels of distribution conceptualizations: a stateof-the-art review', European Journal of Marketing 12 (7): 470-512. R. E. (1965) 'Resale price maintenance and retail outlets', Economica 32: 302-12. Lugli, G. (1976) Economia Delia Distribuzione Commerciale, Milano: Giuffre.
Nevertheless, the pricing advantages of own-label development are constrained by the brand image decisions of the retail chains. Their entry into marketing requires the judgement of 'whether the own-label extension would enhance the image of the store' (Simmons and Meredith, 1984:16) an issue which will be returned to below. Specific industry characteristics such as those of the chocolate confectionery industry may enable suppliers to block these developments. Chocolate confectionery is an oligopolistic market (USA: Hershey and Mars have 70 per cent of market; UK: Mars, Rowntree28 Coping with retailer buying power Mackintosh and Cadbury have 70 per cent of the market).
Driven Selling to retailer Shared with retailer Low Steep discounts High Flat Low Many High* Fewer Source: Authors' adaptation based on Porter (1976) Chapter 2. Note: * Leads to pressure to integrate forward into retailing (see section on 'vertical integration' below). the retailer is relatively high, consumer search costs for information are high, and the differentiation offered by the retailer is therefore more significant. Convenience outlets are marked by a chain organization by which volume efficiencies for the retailer can be gained, and through which the marginal cost to the manufacturer of extending his market coverage is low.