Marketing channels21111
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Marketing channels21111 Presentation Transcript

  • 1. Marketing Channels Mrs. Jayashree Vispute
  • 2. Marketing Channels Intermediaries constitute a Marketing Channel. Marketing Channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption. Set of pathways a product or service follows after production, culminating in purchase and use by the final end user.
  • 3. Intermediaries MERCHANTS (Wholesalers, Retailers).They take title to the goods and resell. AGENTS. They negotiate for a fee. No title to the goods FACILITATORS. They assist in the distribution process. Transporters, advertising agencies, banks. No title to the goods and no negotiation.
  • 4. Importance of Channels A marketing channel system is a set of marketing Channels employed by a firm. Convert potential buyers into profitable orders. Not just “serve” markets, but “make” markets.
  • 5. Push and pull PUSH STRATEGY: manufacturer uses its sales force and trade promotion money to induce intermediaries to carry, promote and sell the product. For low brand loyalty products. PULL STRATEGY: manufacturer uses advertising and promotion to persuade consumers to ask intermediaries for the product. For high brand loyalty products. Top marketers use both Push and Pull Strategy.
  • 6. Role of Marketing Channels When producers lack the financial resources to carry out direct marketing When direct marketing is not feasible When producers can earn greater returns by concentrating on their main business of manufacturing.
  • 7. Distribution channels exist to perform certain fundamental activities that should be performed after the product is manufactured or the service is designed, and before the end consumer eventually consumes the product.
  • 8. Channel Functions Gather information about potential and current customers, competitors Develop communications to aid purchase. Storage and movement of physical products Place orders with manufacturers Organize funds to finance inventories at different levels in the marketing channel. Price agreements and terms so transfer of ownership can be effected.
  • 9. Channel Functions Oversee transfer of ownership Provide for buyers’ payment of bills through various options. Risk taking
  • 10. Numbers of Distribution Channel Levels Each layer of marketing intermediaries that performs some work in bringing the product to its final buyer is a "channel level". The figure below shows some examples of channel levels for consumer marketing channels: