Channel members like retailers and distributors add value by making products available to more consumers. They bridge gaps in time, place, and possession between producers and end users. Key functions include physical distribution, financing, risk taking, gathering and sharing information, developing communications, finding buyers, shaping offers, and negotiating prices. This reduces the workload of producers and allows goods to reach more markets.

1. SITI NOR HALILA BINTI SELAMAT
2018695064
BA250(1C)
LECTURER : SIR NIK ROZHAN
MARKETING CHANNELS:
HOWCHANNELMEMBERSADDVALUE(Key Functions Of Channel Members)

2. A set of interdependent organizations that
help make a product or service available for
use or consumption by the consumer or
business user.
Refer: page 377

3. CHANNEL
MEMBERS:
RETAILERS DISTRIBUTORS
ALSO KNOWN AS INTERMEDIARIES

4. Greater efficiency in
making goods available
to target markets
INTERMEDIARIES
Contact
Experienc
specializatio
Through their:
Refer : page 378

5. MARKETING
INTERMEDIARIES
Transformed the assortment of products → assortment wanted
by consumers
Producers make narrow assortment of
products in large quantities
Marketing channel members buy large
quantities from many producers
Break them down into smaller quantities &
broader assortments desired by

6. MANUFACTURER
(Colgate)
MANUFACTURER
(Dettol)
MANUFACTURER
(Rejoice)
CONSUMER
CONSUMER
CONSUMER
NUMBER OF CONTACT WITHOUT A DISTRIBUTOR
(DIRECT SELLING)
3 X 3 = 9
1
2
3

7. NUMBER OF CONTACT WITH A DISTRIBUTOR
(INDIRECT SELLING)
MANUFACTURER
(Colgate)
MANUFACTURER
(Rejoice)
MANUFACTURER
(Dettol)
CONSUMER
CONSUMER
CONSUMER
DISTRIBUTOR
(Tesco)
1
2
3
3 + 3 = 6

8. HOW CHANNEL MEMBERS ADD VALUE:
◦ By bridging
◦ Major time
◦ Place
◦ Possession gaps that separate goods and services from
those who would use them

9. Functions to assist transactions:
• Physical distribution
• Financing
• Risk taking
Gather information and distribute it
Develop persuasive communications about offers
Finding and communicating with prospective buyers
Shape offers to meet consumer needs
Negotiate prices

10. SUMMARY:
CHANNEL
MEMBERS
• Reduce the amount of work that must be done
by producers and consumers
• Make good available to markets by assisting
companies who cannot do so