Marketing Channels

Topics: Marketing, Investment, Price Pages: 2 (278 words) Published: March 26, 2010

What is marketing channel?
Are sets of interdependent organizations involved in the process of making a product or services available for use or consumption? They are set of pathways a product or service follows after production, culminating in purchase and use by final consumer.

The importance of channels:
One of the chief roles of marketing channels is to convert potential buyers into a profitable order. Marketing channels also represent a substantial opportunity cost.

Different consumers however have different needs during the purchase process. Nunes and Cespedes argue in many markets, buyers fall into four category

1. Habitual shoppers- purchase from same place in the same manner over time. 2. High value deal seekers-know their needs and channel surf a great deal before buying at lowest possible price. 3. Variety-loving shoppers-gather information in many channels take advantage of high touch services and then buy in their favorite channel, regardless of price 4. High-involvement shoppers-gather information in all channels, make their purchase in a low-cost channel, but take advantage of costumer support from high touch channel.

The role of marketing channels

Delegations mean relinquishing some control over how and to whom the products are sold. Producers do gain several advantages by using intermediaries:

1. Many producers lack the financial resources to carry out direct marketing. 2. Producers who do establish their own channels can often earn a greater return by increasing investment in their main business. 3. In some cases direct marketing simply is not feasible.

Channels functions and flows:
It will be discussed one by one. Using a chart

Channel levels:
It will be discussed one by one. Using a chart
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