• Marketing channels- a set of interdependent organizations involved in the process of making a product of service available for use or consumption• They are the set of pathways a product or service follows after production, culminating in the purchase and use of the product
Channel member functions• Gather market information-current and potential customers, competitors and environment• Develop and disseminate persuasive communication (Point of Sale)• Stock and storage• Oversee actual transfer of ownership• Servicing and installation• Financing• Collect payment and transfer back to manufacturer
Channel level• Zero channel level (direct marketing)• Single level (door-to-door sales) eg; Eureka Forbes, Tupeprware,• Multilevel channels
Service sector channels• Channels not limited to physical goods• Education services, beauty salons, banking, insurance, travel
Channel design decisions• Depend on service output levels desired by target customers.Lot size, waiting and delivery time, spatial convenience, product variety, service back-upEstablishing objectives and constraintsIdentifying major channel alternatives (types of intermediaries, number of intermediaries, split of responsibilities)Evaluating major alternatives(Economic criteria, control and adaptive criteria)
Channel conflict• Conflict cannot be avoided• Needs to be managed• Legal and ethical issues
Assignment (15 marks)• Choose and industry; identify at least 4 competing companies in that industry• For each firm identify the various brand/s it markets, the target segment and the brand positioning for each brand.• Give a brief background of the industry• Should be maximum 2 A-4 pages• Must submit a printout• Source of data (tables, reports, graphs etc) must be specified and acknowledged.