DYNAMICS OF MARKETING CHANNELS; A CONTRIBUTION TO A FRAME OF REFERENCE FOR MARKETING CHANNEL RESEARCH IN HORTICULTURE
- optimal access of a product to the relevant segment of the market;
- efficiency of distribution; and
- bargaining power in a specific marketing channel.
The suggested criteria should guide distribution decisions for horticultural products vis a vis:
- dynamics of consumers and of distribution techniques, and
- the move towards oligopolistic markets.
It is contended, that consequences of these market developments require marketing systems in which producer, wholesaler and retailer cooperate to channel a product to the market, viz. to a specific market segment. In this context marketing systems are looked upon as systems of functions, involved in channeling a particular product to consumers. Marketing systems do not necessarily imply the integration of the marketing institutions performing those functions. Problems in developing marketing systems are discussed. Also, some attention has been paid as to how dynamics of markets work through in view of the need for efficiency and bargaining power.