Huang Shan Today

A firm’s channel strategy is required to deal with two kinds of ethical questions:
1. What is the appropriate degree of control over the channel?
2. Should a company distribute its products in marginally profitable outlets that have no alternative source of supply?
The question of control typically arises in relationships between manufacturers and franchise dealers. Should an automobile dealership, a gas station, or a fast-food outlet be coerced to purchase parts, materials, and supplementary services from the parent organization? ‘What is the proper degree of control in the channel of distribution?
The second question concerns marketers’ responsibility to serve unsatisfied market segments even if the profit potential is slight. Should marketers serve retail stores in low-income areas, serve users of limited amounts of the firm’s product, or serve a declining rural market? These problems are difficult to resolve because they often involve individuals rather than broad segments of the general public. An important first step is to ensure that the firm consistently enforces its channel policies.