Case Study 3 I Internet
Case study 3- I Channel Intermediaries
1. Identify the key environmental forces that should be considered by music producers in evaluating strategies for channel design.
The key environmental forces that should be considered by music producers in evaluating strategies for channel design are. a-Government policies/law: What kind of legal structures are available to protect their interests. Especially in the area of copyright and what should be considered as illegal in the general sense when it comes to how music gets from the producers to the consumers and how producers get compensated in cases where violations have occurred. b-Technological factors: (i)The internet and the opportunities that can be harvested from using this as a means to distribute directly to the consumer without need of passing through physical middlemen. (ii)The constant emergence of newer formats that gain a foothold in the market quite quickly.. c-Competition: Competition in the media world affects mediums and formats which their music is put on. d-Economic factors: What are the trends in music expenditure over time periods? Which areas are suffering declines and which areas are enjoying increases? The power of intermediaries compared to music producers e- Social factors: The comfort of purchasing music via the internet without the need to walk into the stores as peoples’ social lives are increasingly changing from going out to staying in with their computers and the internet.
2. Contrast the role of a specialist music retailer with that of a grocery supermarket in the channel for CDs.
General sense: Like comparing purchase of music at music shop vs walmart. a- Specialist music retailers offer far more variety than grocery supermarkets. b- Specialist music retailers understand the customers more because they know when the customer walks in there is no distraction as to what he wants. c- Specialist music retailers target segments of market much more effectively and efficiently than
1. Identify the key environmental forces that should be considered by music producers in evaluating strategies for channel design.
The key environmental forces that should be considered by music producers in evaluating strategies for channel design are. a-Government policies/law: What kind of legal structures are available to protect their interests. Especially in the area of copyright and what should be considered as illegal in the general sense when it comes to how music gets from the producers to the consumers and how producers get compensated in cases where violations have occurred. b-Technological factors: (i)The internet and the opportunities that can be harvested from using this as a means to distribute directly to the consumer without need of passing through physical middlemen. (ii)The constant emergence of newer formats that gain a foothold in the market quite quickly.. c-Competition: Competition in the media world affects mediums and formats which their music is put on. d-Economic factors: What are the trends in music expenditure over time periods? Which areas are suffering declines and which areas are enjoying increases? The power of intermediaries compared to music producers e- Social factors: The comfort of purchasing music via the internet without the need to walk into the stores as peoples’ social lives are increasingly changing from going out to staying in with their computers and the internet.
2. Contrast the role of a specialist music retailer with that of a grocery supermarket in the channel for CDs.
General sense: Like comparing purchase of music at music shop vs walmart. a- Specialist music retailers offer far more variety than grocery supermarkets. b- Specialist music retailers understand the customers more because they know when the customer walks in there is no distraction as to what he wants. c- Specialist music retailers target segments of market much more effectively and efficiently than