Marketing Channels


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This PowerPoint Presentation on Marketing Channels is to be used in discussing a lesson in a 1.5 time frame classroom activity intended for the first year college students of CVCITC located in Santiago City, Philippines. You can also make use of this module in your classroom if you think it could help.

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Marketing Channels

  1. 1. Objectives 1. Define Distribution/ Marketing Channel 2. Enumerate the types of marketing channels and functions of Marketing Channels; and explain each 3. Discuss why a business use intermediaries 4. Illustrate the factors that influence Channel Selection and the Distribution Strategies used by Firms 5. Reflect on this: “Why is the producer willing to delegate some selling jobs to intermediaries
  2. 2. Meaning of Marketing Channel  A marketing channel is a set of practices or activities necessary to transfer the ownership of goods, and to move goods, from the point of production to the point of consumption  It consists of all the institutions and all the marketing activities in the marketing process.  It is a useful tool for management. A link between manufacturers and customers  Accomplishes all the tasks necessary to effect a sale and deliver products to the customer  The tasks include making contact with potential buyer, negotiating, contracting, and transferring the title to storage of goods
  3. 3. Roles of Marketing Channels  Links producers to buyers.  Performs sales, advertising and promotion.  Influences the firm's pricing strategy.  Affecting product strategy through branding, policies, willingness to stock.  Customizes profits, install, maintain, offer credit, etc
  4. 4. Factors that Influences Channel Selection  The nature of the product  The nature of the market  The nature of the company Market Single Prop. Product Partnership or Corporation Nature of the Company
  5. 5. Distribution Strategies Used by Firms -Improve customer service (Differentiation of Products, Fast delivery) -Reduce distribution cost (Economic Order quantity and just-in time Inventory) -Create time and place utilities(Year Round Consumption VS Seasonal Production/Consumption- Storage) -stabilize prices (Supply and Demand) -influence channel decisions (proper selection of right channel) -control shipping costs Efective (Physical Distribution)
  6. 6. LET US REFLECT Reflect on this: “Why is the producer willing to delegate some selling jobs to intermediaries
  7. 7. ASSIGNMENT  Be ready for a Unit Test  Read About Retailing and Wholesaling
  8. 8. Unit Test Test I-Enumerate the following:  1-5- key words on meaning of marketing channels  6-10- roles of marketing channels  Test II-Answer at least in three sentences bearing a complete reasoning: “Why is the producer willing to delegate some selling jobs to intermediaries”