Scribd
Upload
12 views4 pages

(C-12) Marketing Channel

Uploaded by

raihanbest2020
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
12 views4 pages

(C-12) Marketing Channel

Uploaded by

raihanbest2020
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

Key Functions of the Marketing Channel:

Information: gathering and distributing information about consumers,


producers, and other actors and forces in the marketing environment is needed
for planning and aiding exchange.
Promotion: developing and spreading persuasive communications about an
offer.
Contact. Finding and engaging customers and prospective buyers.
Matching. Shaping offers to meet the buyer's needs, including activities such as
manual facturing, grading, assembling, and packaging.
Negotiation. Reaching an agreement on price and other terms so that ownership
or possession can be transferred,
Others help to fulfill the completed transactions:
Physical distribution. Transporting and storing goods.
Financing. Acquiring and using funds to cover the costs of the channel work.
Risk taking. Assuming the risks of carrying out the channel work.
Major Alternatives
To effectively reach their target markets, companies need to explore the various
channel alternatives at their disposal.
Types of Intermediaries: Intermediaries are crucial players in the distribution
process, with retailers directly connecting products to consumers, wholesalers
managing bulk transactions between manufacturers and retailers, and agents and
brokers facilitating deals without taking ownership of the products.
Number of Marketing Intermediaries: The number of marketing
intermediaries is a strategic decision, with intensive distribution maximizing
market coverage, exclusive distribution limiting intermediaries for premium
exclusivity, and selective distribution finding a middle ground for products
requiring specific expertise or selling efforts.
Intensive Distribution: A strategy where a company distributes its products
through as many outlets as possible. This approach is suitable for products with
high demand and low consumer involvement.

Exclusive Distribution: A strategy where a company limits the number of


intermediaries handling its products. This is often employed for luxury or
specialty items to maintain a certain level of exclusivity.

Selective Distribution: A strategy where a company selects a moderate number


of intermediaries based on factors such as location, reputation, or expertise. This
approach is common for products that require specific selling efforts.

Responsibilities of Channel Members: Channel members bear key


responsibilities, from facilitating transactions and negotiating terms to engaging
in promotion and communication. They actively participate in physical
distribution, manage logistical aspects, and provide valuable market insights,
contributing to the overall success of the distribution channel.
Channel design decisions
start with understanding what consumers want and need.

Analyzing consumer needs:


In channel design, the first step involves a thorough analysis of consumer needs
and preferences. Understanding what consumers value, how they prefer to
access products, and their expectations sets the foundation for an effective
distribution strategy.

Setting Channel Objectives:


Channel objectives establish the goals a company aims to achieve through its
distribution channels. These objectives may include maximizing market
coverage, optimizing efficiency, enhancing customer service, or achieving a
balance between various competing priorities.

Identifying Major Alternatives:


Once consumer needs are understood, the next step is identifying major
alternatives for distributing products. This involves exploring options such as
direct sales, retail partnerships, online platforms, or a combination of these,
considering factors like product type, market reach, and consumer behavior.

Evaluating the Major Alternatives:


After identifying potential channel alternatives, the evaluation phase is critical.
Companies assess the strengths and weaknesses of each option, considering
cost-effectiveness, market reach, alignment with objectives, and adaptability to
changing market dynamics. This evaluation guides the selection of the most
suitable distribution channels.
Channel Management Decisions:

Choosing the right partners is where channel management decisions start,


setting the stage for effective distribution and reaching the market.

1. Selecting Channel Members:


The process of channel management kicks off with the critical decision to select
channel members. This involves identifying partners, such as distributors,
retailers, or agents, based on their ability to effectively reach the target market
and align with the company's overall objectives.

2. Managing and Motivating Channel Members:


Once channel members are selected, effective channel management involves
ongoing efforts to manage and motivate these partners. This includes providing
the necessary support, training, and incentives to encourage optimal
performance and collaboration.

3. Evaluating Channel Members:


Regular evaluation of channel members is essential for assessing their
contribution to the overall distribution strategy. Companies analyze factors such
as sales performance, customer satisfaction, and adherence to brand standards to
ensure alignment with the company's goals.

You might also like