Marketing Channels
Report in Principles of Marketing
CHAPTER 8:
MARKETING CHANNELS
CHAPTER 8: MARKETING CHANNELS
Its Nature & Functions * Marketing channels are conduits used by the firm to distribute its products. * Marketing channels are human creations and they may be designed and structured to serve the needs of the user. * A marketing channel may be defined as a set of interdependent organization and individuals that facilitate the movement and transfer
Functions of the Marketing Channels 1. They routinize decisions and work 2. They finance the process for moving goods from producers to consumers 3. They are active participants in the pricing process 4. They serve as a channel of communication between the producers and the consumers 5. They assist in the promotional aspects in marketing 6. They minimize the number of transactions in the system
Type of Marketing Channels 1. Consumer Channels 2. Industrial Channels
Consumer Channels
Are those that are used in the distribution of consumer goods. Industrial Channels
Are those which are used in the distribution of industrial goods
Selecting a Marketing Channel
In the selection of a marketing channel, the company is faced with any of the following situations: 1. It may have an option of choosing from among the various channels existing; or 2. It may have that option to choose.
The Channel Selection Process 1. Identification of target customers 2. Determination of consumer buying habits regarding the goods under consideration 3. Determination of the location of the potential customers 4. Listing of channel alternatives 5. Evaluation of channel members 6. Selection of channel members
Evaluating the Prospective Channel Member
A set of criteria that may be useful in evaluating a channel is as follows: 1. Credit and financial condition of the distributor. A review of the credit performance and
CHAPTER 8:
MARKETING CHANNELS
CHAPTER 8: MARKETING CHANNELS
Its Nature & Functions * Marketing channels are conduits used by the firm to distribute its products. * Marketing channels are human creations and they may be designed and structured to serve the needs of the user. * A marketing channel may be defined as a set of interdependent organization and individuals that facilitate the movement and transfer
Functions of the Marketing Channels 1. They routinize decisions and work 2. They finance the process for moving goods from producers to consumers 3. They are active participants in the pricing process 4. They serve as a channel of communication between the producers and the consumers 5. They assist in the promotional aspects in marketing 6. They minimize the number of transactions in the system
Type of Marketing Channels 1. Consumer Channels 2. Industrial Channels
Consumer Channels
Are those that are used in the distribution of consumer goods. Industrial Channels
Are those which are used in the distribution of industrial goods
Selecting a Marketing Channel
In the selection of a marketing channel, the company is faced with any of the following situations: 1. It may have an option of choosing from among the various channels existing; or 2. It may have that option to choose.
The Channel Selection Process 1. Identification of target customers 2. Determination of consumer buying habits regarding the goods under consideration 3. Determination of the location of the potential customers 4. Listing of channel alternatives 5. Evaluation of channel members 6. Selection of channel members
Evaluating the Prospective Channel Member
A set of criteria that may be useful in evaluating a channel is as follows: 1. Credit and financial condition of the distributor. A review of the credit performance and