Physical Distribution of Waghbakri Tea
[Year]
MARKETING CHANNEL
Most producers do not sell their products directly to the final users; between them stands a set of intermediaries performing a variety of functions. These intermediaries constitute a marketing channel also known as Trade Channel or Distribution Channel. Marketing Channels are set of interdependent organizations involved in the process of making a product or service available for use or consumption. They are set of pathways a product or service follows after production, culminating in purchase and use by the final end users. The intermediaries include wholesalers, retailers, merchants, brokers, manufacturers’ representatives, sales agent. While transportation companies, independent warehouses, banks and advertising agencies are facilitators who assist in distribution process.
MARKETING CHANNEL SYSTEM A marketing channel system is the particular set of marketing channels a firm employs and decisions about it are among the most critical ones management faces. The channel members of any marketing channel collectively have earned margins that account for 30% to 50% of the ultimate selling price. The more the channel members, more would be the selling price. The channels chosen affect all other marketing decisions. The company’s pricing depends on whether it uses mass merchandisers or high- quality boutiques. The channel decision needs long term commitments with other firms as well as a set of policies and procedures. The channel choices depend on company’s marketing strategy with respect to segmentation, targeting, and positioning.
CHANNEL LEVELS
The producer and the final customers are part of every channel. There are different levels that a company would follow. They are:
• Zero Level Channel : consists of a manufacturer selling directly to the final customer.
• One Level Channel : contains one selling intermediary, such as retailer.
• Two Level Channel :contains two intermediaries- a wholesaler and
MARKETING CHANNEL
Most producers do not sell their products directly to the final users; between them stands a set of intermediaries performing a variety of functions. These intermediaries constitute a marketing channel also known as Trade Channel or Distribution Channel. Marketing Channels are set of interdependent organizations involved in the process of making a product or service available for use or consumption. They are set of pathways a product or service follows after production, culminating in purchase and use by the final end users. The intermediaries include wholesalers, retailers, merchants, brokers, manufacturers’ representatives, sales agent. While transportation companies, independent warehouses, banks and advertising agencies are facilitators who assist in distribution process.
MARKETING CHANNEL SYSTEM A marketing channel system is the particular set of marketing channels a firm employs and decisions about it are among the most critical ones management faces. The channel members of any marketing channel collectively have earned margins that account for 30% to 50% of the ultimate selling price. The more the channel members, more would be the selling price. The channels chosen affect all other marketing decisions. The company’s pricing depends on whether it uses mass merchandisers or high- quality boutiques. The channel decision needs long term commitments with other firms as well as a set of policies and procedures. The channel choices depend on company’s marketing strategy with respect to segmentation, targeting, and positioning.
CHANNEL LEVELS
The producer and the final customers are part of every channel. There are different levels that a company would follow. They are:
• Zero Level Channel : consists of a manufacturer selling directly to the final customer.
• One Level Channel : contains one selling intermediary, such as retailer.
• Two Level Channel :contains two intermediaries- a wholesaler and