Sociocultural Environment

Marketing channels operate in a continually changing environment. The environment consists of myriad external, uncontrollable factors within which marketing channels exist. There are five factors categorize impact of the environment on channel strategy. Five factors impact of environment such as Economic, Competitive, Sociocultural, Technological and Legal. When channel manager considers environmental influences on channel strategy, he or she needs to look at the strategy implications not only for his or her own firm but the other channel participants that may be effected. The economic environment is probably the most obvious and pervasive category of environmental variables affecting all members and participant. There are major economic

The sociocultural environment pervades all aspects of a society. Marketing channels are therefore also influenced both national and international marketing channels. Then, influences wide variations among channel structures worldwide. So, channel managers must carefully observe changing sociocultural patterns in order to discern what implications these pattern changes will have for marketing channel strategy. Because of their profound influence in recent years, certain developments should be especially noted include globalization, consumer mobility and connectedness, social networking and the Green

The technological environment must be monitored carefully to evaluate the effects of technological changes on marketing channels such as help retailers & wholesalers closely monitor success or failure of products they handle. The developments such as the Internet, EDI ( Electronic Data Interchange), the digital revolution, computerized inventory management with handheld computers, smartphones, RFID (Radio Frequency identification) and cloud computing should be followed closely. Finally, the legal environment refers to the set of laws that impact marketing channels for continually evolving, affected by changing values, norms, politics, & precedents and knowledge of basic helps manager avoid serious & costly legal problems. Channel managers cannot ignore the legal environment with its complex laws and changing precedents. Because channel managers cannot be expected to be experts in the technicalities and nuances involved in the complex and changing legal environment affecting channel management, general knowledge and awareness of some of the basis laws and legal issues are needed. They should also understand how they affect such legal issues as dual distribution, exclusive dealing, full-line forcing, price discrimination, price maintenance, refusal to deal, resale restrictions and trying agreements also vertical integration through acquisitions and