1. Is the Internet a channel? How does it fit with more traditional channels?
A marketing channel permits a marketing organization to communicate with potential end users of products and it provides a means for the delivery of products to end users. Depending on the nature of the product and the characteristics of the market, (a) different types of intermediaries are included in a marketing channel system and (b) the number of intermediaries in the marketing channel system will vary. Within these contexts, the Internet is a marketing channel in one sense because it allows a marketing organization to communicate with potential end users directly. Alternatively, the Internet may simply be a means of communication if the marketing organization depends upon the Web sites of Internet-based intermediaries to communicate with potential end users. In a second sense, the Internet is a marketing channel for the distribution of intellectual property products when the marketing organization (a) originates such products and (b) provides online delivery of the products. Alternatively, the Internet may simply be a means of communication that facilitates the completion of product delivery arrangements and provides means for end user to track the status of product orders and delivery.
2. What are the pros/cons of eliminating a channel intermediary?
Special care must be exercised when decisions are made with respect to the modification of a channel. There are two primary reasons why such care must be exercised. First, decisions related to channel structure have significant interrelationships with all other marketing decisions. Therefore, the effects of any decision to modify a channel must be projected throughout a firmÆs marketing system. Second, channel relationships typically involve long-term commitments. The long-term character of channel relationships has two inhibiting impacts on channel modification decision
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