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Abstract

In the past, producers resorted to the method of selling directly to consumers. At that time, the producer was close to the market and was aware of the consumers' needs and requirements. Thereupon, the producers performed the role of both producers and distributors; however, due to the growth of consumers' needs on the one hand, and the progress in production techniques, and the development of transport means and communications on the other hand, producers looked for new, domestic and external markets for their goods and services. This lead to the producers' need of specialists, called distributors, who were given the mission of distributing goods and services in addition to collecting information related to the market to produce goods and to provide services which match the individuals' needs and requirements in this market. The idea of distribution is based on a vertical legal structure, which combines the producers and suppliers; those are chosen according to certain specific criteria or certain geographical areas. This legal structure is called the "Distribution Networks of Goods and Services." In addition, these networks are called "Closed Networks" because they prevent, as a general rule, any distributor outside the network from obtaining the products that are the object of distribution as well as from reselling them. Typical distribution networks are divided into selective distribution networks; however, the internal relationships within the distribution networks are divided into exclusive distribution networks. These in turn maybe Vertical when there is a direct relationship between suppliers and distributors, or Horizontal when there is a relationship among the distributors themselves. The goods and services distribution network is affected by the progress in communication methods among consumers; this progress took the form of e-marketing via the Internet.

This research is divided into two sections: Section one deals with the distributors' freedom to resort to e-marketing or electronic distribution over both selective and exclusive distributing networks. Finally, section two deals with the set criteria when distributors resort to electronic marketing or distribution

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