Marketing Channel

2.  Marketing Is an Effective Way of Engaging
Customers
◦ It engage customers i.e furnishing your customers with
relevant information about companies products and business.
◦ Social media is one of the best platform in which some
organizations use short videos and other humor-laden tricks to
engage their customer base.
◦ By engaging your customers, marketing gives them a sense of
belonging.

3.  Marketing Helps to Build and Maintain the Company’s
Reputation
◦ The growth and life span of your business is positively correlated to your
business’s reputation.
◦ Marketers use effective communication, branding, PR and CSR strategies
to ensure that a business’s reputation is maintained.
 Marketing Helps to Build a Relationship Between a
Business and Its Customers
◦ Businesses need to build a relationship of trust and understanding with
their customers.
◦ Marketing research segments should be based on demographics,
psychographics (Personality traits, Lifestyle, Attitude, Value, Interest and
Belief), and consumer behavior.
◦ To convert customer into loyal customers.

4.  82% of companies agree that retention is cheaper than
acquisition.
 75% of consumers say they favor companies that offer
rewards.
 56% of customers stay loyal to brands which “succeeds in
attaining their objectives.”
 65% of a company’s business comes from existing customers.
 Increasing customer retention by just 5% boosts profits by 25%
to 95%.
 58% of companies pursue personalization strategies for
customer retention.

5.  Marketing Is a Communication Channel Used to
Inform Customers
◦ The customers get to know about the value of the products, their
usage and additional information
◦ There’s stiff competition in the market and company need to be a
constant voice to convince the customers.
 Marketing Helps to Boosts Sales
◦ Ensure to offer high-quality products and services to complement
your marketing efforts.
 Marketing Aids in Providing Insights About Your
Business
◦ It acts as a metric and provides the insight needed to make you
avoid guesswork.

6.  Marketing Helps Your Business to Maintain
Relevance
◦ Helps your business to maintain a good relationship with
customers by making you remain relevant
 Marketing Creates Revenue Options
 Marketing Helps the Management Team to Make
Informed Decisions

7.  According to American Marketing Association:
“A channel of distribution, or marketing channel, is the
structure of intra-company organization units and extra
company agents and dealers, wholesale and retail through
which a commodity, product or service is marketed.”
 According to Philip Kotler:
“Every producer seeks to links together the set of Marketing
intermediaries that best fulfill the firm’s objectives. This set
of marketing intermediaries is called the Marketing
Channels. (Also called Trades channel or Channel of
Distribution.)”

8.  According To William J Stanton:
“ A Channel of distribution for product is the route
taken by the title to the goods as they move from the
producer to the ultimate consumer or industrial user.”
 According to Cundiff, Still and Govani:
“Marketing channel are the distribution network
through which producers produce flow to the market.”

9.  The major focus of channel of distribution is delivery. It is
only through distribution, public and private goods and
services can be made available for the use of consumptions.
 The emergence and arrangement of wide variety of
distribution oriented institution and agencies, typically called
Intermediaries because they stand between production on
other hand and consumption on other, can be explained in
following terms;
i. Intermediaries can improve the efficiency of the process.
ii. They help in the proper arrangement of the route of
transactions.
iii. They help in the searching process.
iv. They help in sorting process.

10.  To ensure the availability of products at the point of sale.
 To build the channel members loyalty.
 To stimulate channel members to put greater selling efforts.

 To develop managerial efficiency in the channel organization.
 To identify your organization at buyer level.
 To have an effective and efficient distribution system, to make
your product and services available.

13.  Time and Place utility.
 Convenience to Consumers.
 Relive from Marketing Problems.
 Information to the producer.
 Stability in Prices.
 Promotional Activities.
 Storage of finished goods.
 Finance the producer.

14.  Information Provider.
 Price Stability.
 Promotion.
 Financing.
 Title.
 Help in Production Function.
 Matching Demand and Supply.
 Matching Buyer And Seller.

15.  Intensive Distribution
 Selective Distribution
 Exclusive Distribution.

16.  The intensive is a form of distribution in which the
manufacturer distributes his products through as many outlets
as possible. This type of is used for those products that are
characterized by low involvement of the customer and where
customers look for location convenience.
 Products like chocolate, biscuits, shaving blades, soaps and
detergents are distributed in this manner, so they are easily
available to the customer at their nearest location.
 Manufacturer are constantly tempted to move from exclusive or
selective distribution to more intensive distribution to increase
the coverage and the sales.
 This strategy help long term but hurt long term performance.

17.  Example
 Titan watches - Titan sells its through seven different
channels; world of titan, Time zone, Value Mart, Sonata
stores, Titan Signet Club, Tanishq boutiques, and
private multi brand outlets. These channels – some of
which are only present in selected cities – provide Titan
with wide range coverage, cover different price points,
and target different segments of customers. It helps
Titan generate sales volume while protecting its brand
image at the same time.

18.  Here, the firm selects some outlets to distribute its products.
This alternative help to focus the selling efforts of the
manufacturing firm on the few outlets rather than disappointing
it over countless marginal ones.
 It also enables the firm to establish a good working relationship
with channel members. Selective distribution can help the
manufacturer gain optimum market coverage and more control
but at lesser cost than intensive distribution.
 Selective distribution is appropriate for consumers shopping
goods, such as various types of clothing and appliances and
business accessory equipments, such as office equipments and
Hand held tools.

19.  In contrast, company may choose to be a more selective
after some experience with intensive distribution. The
decision to change usually hinges on the high cost of
intensive distribution or the unsatisfactory performance
of middlemen.
 A firm may move towards more selective distribution
to enhance the image of its products, strengthen
customer services, improve quality control, and or
maintain some influence over its prices.

20.  When the firm distributes its brand through just one or two major
outlets in the market, who exclusively deal in it and not all
competing brands, we say that the firm is using an exclusive
distribution strategy. This is a common from products and brands
that seeks high prestigious image.
 Typical example are designer ware, major domestic appliances and
even automobiles.
 By granting exclusive distribution rights, the manufacturer hopes to
have control over the intermediaries price, promotion, credit
inventory and service policies.
 As the manufacturer uses a relative fewer number of distribution
channel , he can maintain good relation with the channel members
and as a result, expect an increased marketing effort from them.

21.  Branded menswear like color plus, Arrow, Zodiac, Lee
and so on are available at exclusive showroom as well
as other distribution channel.

23. Steps involved in Designing a Channel System:
1. Formulating Channel Objectives.
2. Identifying Channel functions.
3.Linking design to Product Characteristics. 4.Evaluation
of the distribution Environment. 5.Evaluation of
competitors Channels Design. 6.Matching Channel Design
to Company Resources.
7.Evaluating the Alternatives and Selecting the Best.