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WHAT IS
MARKETING
CHANNEL AND
VALUE NETWORK
?
CHAPTER : 14
MARKETING CHANNEL
A marketing
channel is a set
of
interdependent
organizations
participating in
the process of
making a product
or service
available for use.
DIFFERENT FORMS OF
INTERMEDIARIES
AGENTS: Search for customers, negotiates for
producer but do not take title to goods.
MERCHANTS: Buy, take title to and resell the
merchandise.
FACILITATORS: Assist in the distribution process.
is the particular set of
marketing channels a firm
employs
SIGNIFICANCE OF
CHANNELS
CON VERTS POTENTIAL
BUYERS INTO
PROFITABLE
CUSTOMERS
MAKE
MARKET
MULTICHANNEL
MARKETING
Is the scenario when a single firm
uses two or more marketing channel
to reach
what follows
i.e. customer segments
VALUE NETWORK
A system of partnerships and alliance
that a firm creates to source, augment
and deliver it’s offering.
Supplier’s Supplier Company it’s immediate customer
Supplier Final Dealer Customer
A company needs
to orchestrate
these parties in
order to deliver
superior value to
the Target Market
This surely shows how well
partnership needs to be maintained
Apple’s Developers keep
70 % of revenue
while
30 % goes to apple
DISCLAIMER
Created by
Khushi Sahu,
IIT BHU,during an internship by
Prof. Sameer Mathur, IIM Lucknow.
www.IIMinternship.com

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What is marketing channel and value network ? , Chap : 14