SBANC Newsletter
September 6, 2005
Issue 388-2005
QUOTE
"Make your product easier to buy than your competition, or you will find your customers buying from them, not you."
--
Mark Cuban
FEATURE PAPER
The Evolving Marketplace: A Brief Review of Technology and Market Systems
This paper was presented by George M. Zinkhan and Ji Hee Song from the University
of Georgia and
Sam S. Zinkhan from the University of Texas at the 2005 Association of Collegiate
Marketing Educators (ACME)
Annual Meeting in Dallas, Texas on March 1-5, 2005.
Abstract
The marketplace is an ancient human development that simultaneously delivers
a standard of
living and serves as a forum for the exchange of ideas. Here, we briefly
touch upon the
highlights associated with the evolution of the marketplace and show its
influences on society.
We also discuss how the “marketspace” of emerging technology (e.g.,
the Internet) is
transforming this multi-faceted institution.
Read the Entire Paper...
TIP OF THE WEEK
What Defines an Effective Channel?
An effective distribution channel has several characteristics, which are discussed
briefly in the following paragraphs.
Inventory
At various points along the channel, inventory must be warehoused and ready
to be shipped where needed, whether it is raw materials to the manufacturer
or finished goods to the consumer. Entrepreneurs need to decide whether they
want to hold inventory or outsource that capability to someone else in the
channel. Holding the inventory for distribution gives the entrepreneur more
control over what happens to products, but warehousing and distribution are
competencies that the entrepreneur's team may not have.
Ownership
It is important to distinguish between ownership of the goods and possession
of them. As goods move through the channel, ownership typically changes only
at the point of purchase, but possession may change at various points. For
example, when a fulfillment house agrees to warehouse and ship for a company,
it takes possession of the goods but does not purchase them and therefore
does not own them. Information, as an intangible product, presents some unique
challenges with regard to ownership, and illegitimate channels may even be
formed to move the product through the channel. This can be seen, for example,
in the pirating of software and music.
Negotiation
Many channels that deal in expensive items, such as automobiles or industrial
equipment, function primarily as price negotiators. Prices are set merely
as a starting point for negotiation with the final customer, so for these
channels to be effective, they must provide the ability to negotiate.
Gathering of Market Information
The Internet has facilitated the gathering of market intelligence by companies
and industries of all sizes. Because such information is critical to successful
product development and business planning, gathering it has become a characteristic
of a successful distribution channel.
Financing and Payment
Credit is an essential element of an effective channel because it smoothes
out the fluctuations in cash on hand experienced by purchasers. Methods for
collecting payments for purchases have been enhanced by technology.
Risk Management
The movement of products through channels entails some level of risk for which
third-party insurance is required. Examples of such risk are product loss
or breakage during shipping, product liability, and failure of the customer
to pay for goods. In addition, manufacturers take on responsibility for risk
to the customer via warranty programs and after-sale service agreements.
Member Power
Effective channels often produce channel members who gain the power to control
aspects of the channel. A channel member gains power if (1) other members
rely on it for their primary needs, (2) it controls financial resources,
(3) it plays a critical role in the value chain, (4) it has no substitute,
or (5) it has information that reduces uncertainty. For example, Wal-Mart
is well known for employing strong-arm tactics to exact the lowest possible
prices from its suppliers. Because it is the world's largest retailer, it
is well aware that smaller suppliers cannot afford to lose such a huge customer.
Strong retailers can also force manufacturers to adopt new systems, as was
the case in the 1980s when retailers forced manufacturers to provide UPC
symbols on packages so the retailers could scan them for inventory and sales
tracking.
In an effective channel, strong members include other members in the decision-making
process; they share information and often make concessions when a new policy
or technology is costly to a member. One excellent example of channel collaboration
comes from the apparel industry, where DuPont, a fiber producer; Milliken & Co.,
a textile mill; Robinson MFG., an apparel manufacturer; and JC Penney, a retailer,
joined forces to identify customer needs and develop a new line of clothing.
Allen, Kathleen R. Launching New Ventures: An Entrepreneurial Approach. 4th
ed. Boston: Houghton Mifflin, 2006. 74-76.
CONFERENCES
World Trade Club Forum
The World Trade Club (WTC) will hold its World Trade Club Forum at the
Regions Bank Building in Little Rock, Arkansas on September 8, 2005. The
topic of this forum is "Doing Business with China."
For more information, visit:
http://www.sbaer.uca.edu/updates/conferences/WTC2005.doc
2005 Spend Management Conference
The Conference Board is holding the 2005 Spend Management Conference at the Grand Hyatt in New York, New York on September 14-16, 2005.
The theme for the conference is Enterprise Spending Analysis Demonstrates Success for Strategic Sourcing, Cost Savings and Continuous Improvement. (Supply
Management Conference)
For more information, visit: http://www.conference-board.org/
MMA Fall 2005 Conference
The Marketing Management Association (MMA) is holding the 10th
Annual Fall Educators' Conference at the Service Hyatt Regency Crown
Center,
Kansas City, Missouri on September 24-27, 2005. This conference
provides a forum for educators to exchange teaching tips and techniques
to enhance their teaching skills.
For more information, visit: http://www.mmaglobal.org/
2005 Conway Business Expo
The Conway Area Chamber of Commerce is holding the 2005 Business Expo at
the Conway Sports Center, Conway, Arkansas on October 4,
2005.
For more information, visit: http://www.conwayarkcc.org
2005 ALLIED Fall International Conference
Allied Academies is holding the 2005 Fall International Conference at the Riviera Hotel and Casino in Las Vegas, Nevada on October 12-15, 2005.
For more information, visit: http://www.alliedacademies.org/vegas-call.html
CALL FOR PAPERS
ACME Conference 2006
The Association of Collegiate Marketing Educators (ACME) is holding the
2006 ACME Conference at the Sheraton Hotel in New Orleans, Louisiana on
March 1-4, 2006.
Submission Deadline:
September 23, 2005
For more information, visit: http://www.a-cme.org/2006Conference/
Journal of American Academy of Business, Cambridge
The Journal of American Academy of Business, Cambridge (JAABC) publishes
articles of interest to members of the Business Community and will
provide leadership in introducing new concepts to its readership.
Submission Deadline:
September 26, 2005
For more information, visit: http://www.jaabc.com/journal.htm
2005 EIBR Conference
The Economics & International Business Research Organization is holding
the 2005 Economics & International
Business Research Conference on economics, international business, and many
additional tracks. The conference is being held at the Royal Palm Crowne
Plaza Resort in South Beach, Miami, Florida on December
14-17, 2005.
Submission Deadline:
September 27, 2005
For more information, visit: http://www.jaabc.com/miami.html
5th IBIMA Conference
The International Business Information Management Association (IBIMA)
is holding the 5th
IBIMA Conference in Cairo, Egypt on December 13-15, 2005. Conference topics include the Internet and information
technology in modern organizations.
Submission Deadline:
October 3, 2005
For more information, visit: http://www.ibima.org/Cairo2005/index.html
2006 IAEB Annual Conference
The International Academy of E-Business (IAEB)
is holding the 2005 6th
Annual Conference at the Sheraton
Studio City Resort Hotel in Orlando, Florida on March 23-26, 2006. Topics
include e-Technologies & their
Impact on Globalization: Concepts, Models, Problems & Strategies.
Submission Deadline: November
1, 2005
For more information, visit: http://www.iaeb.org/
ANNOUNCEMENTS
The
SBI Network
SBANC
has recently compiled a list of Small Business Institute, Small
Business Management and Entrepreneurship institutions across the
country. If you are aware of a small business
and/or entrepreneurial program in your area, please take the time
to drop by the SBI
Network. If you find a mistake or an omission,
you can let us
know about it by clicking here,
or clicking the link at the bottom of any of the SBI Network pages.
National Association of Purchase Management - Arkansas
The
National Association of Purchase Management-Arkansas (NAPM-AR),
an affiliate of the Institute for Supply Management,
is holding their September meeting at the University of Central
Arkansas Student Center in Conway, Arkansas on September 15,
2005 at 6:00 p.m. in room
215-A. Dr. Don B. Bradley III is the featured speaker, and will
speak on the future of supply management.
For more information: http://www.napmar.org/
The
SBANC Newsletter is provided as a service to the members of our
affiliates:
Academy of Collegiate Marketing Educators (ACME), Association for
Small Business& Entrepreneurship (ASBE), Decision Sciences Institute
(DSI), Federation of Business Disciplines (FBD), International Council
for Small Business Congress (ICSBC), Institute for Supply Management,
The International Small Business Congress (ISBC), Marketing Management
Association (MMA), Small Business Administration (SBA), Service Corps
of Retired Executives, Small Business Institute (SBI), Society for
Marketing Advances (SMA), United States Association for Small Business & Entrepreneurship
(USASBE), U.S. Department of Veterans Affairs and Western Decision
Sciences Institute (WDSI). If you are interested in membership
or would like further information on one of our affiliates, please
see
our web
site at http://www.sbaer.uca.edu
SBANC STAFF
Main Office Phone: (501) 450-5300 Dr. Don B. Bradley III, Executive Director of SBANC & Professor of Marketing Direct Phone: (501) 450-5345, E-mail: donb@uca.edu Esther Mead, Graduate Research, E-mail: esthermead@gmail.com Ashley Ford, Development Intern, E-mail: ASHatsbanc@hotmail.com Brad Lawrey, Development Intern, E-mail: bradlawrey@hotmail.com
Olivia Johnson, Development Intern, E-mail: reneeatuca_2003@hotmail.com
To subscribe or unsubscribe to the SBANC Newsletter, please E-mail SBANC at sbanc@uca.edu
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