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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 and, as such, which 
consists of all the institutions and all 
the marketing activities in the marketing 
process.
Role of marketing channel in marketing 
strategies: 
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.
Types of Marketing Channels:
Manufacturer to Customer: 
Manufacturer makes the 
goods and sells them to the consumer directly 
with no intermediary. 
Example: 
A farmer may sell some produce directly to 
customers. A bakery may sell cakes and pies 
directly to customers.
Manufacturer to Retailer to Consumer: 
Purchases are made by 
the retailer from the manufacturer and then 
the retailer sells the merchandise to the 
consumer. This channel is used by 
manufacturers that specialize in producing 
shopping goods.
Manufacturer to Wholesaler to 
Customer: 
Consumer’s can buy 
directly from the wholesaler. The 
wholesaler breaks down bulk packages for 
resale to the consumer. The wholesaler 
reduces some of the cost to the consumer 
such as service cost or sales force cost, 
which makes the purchase price cheaper for 
the consumer.
Manufacturer to Agent to 
Wholesaler to Retailer to Customer: 
Distribution that 
involves more than one intermediary 
involves an agent called in to be the 
middleman and assist with the sale of the 
goods. An agent receives a commission 
from the producer. Agents are useful when 
goods need to move quickly into the market 
soon after the order is placed.
Marketing channel
Marketing channel

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Marketing channel

  • 1.
  • 2. 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 and, as such, which consists of all the institutions and all the marketing activities in the marketing process.
  • 3. Role of marketing channel in marketing strategies: 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. Types of Marketing Channels:
  • 5. Manufacturer to Customer: Manufacturer makes the goods and sells them to the consumer directly with no intermediary. Example: A farmer may sell some produce directly to customers. A bakery may sell cakes and pies directly to customers.
  • 6. Manufacturer to Retailer to Consumer: Purchases are made by the retailer from the manufacturer and then the retailer sells the merchandise to the consumer. This channel is used by manufacturers that specialize in producing shopping goods.
  • 7. Manufacturer to Wholesaler to Customer: Consumer’s can buy directly from the wholesaler. The wholesaler breaks down bulk packages for resale to the consumer. The wholesaler reduces some of the cost to the consumer such as service cost or sales force cost, which makes the purchase price cheaper for the consumer.
  • 8. Manufacturer to Agent to Wholesaler to Retailer to Customer: Distribution that involves more than one intermediary involves an agent called in to be the middleman and assist with the sale of the goods. An agent receives a commission from the producer. Agents are useful when goods need to move quickly into the market soon after the order is placed.