from philip kotler book 16th edition

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