Sales tax variations from state to state may have been taken into consideration while deciding on retail out­lets or showrooms for certain products for which the tax variation is large. Many organisations lack the resources (financial as well as other resources), to carry out direct marketing and reach out to their many customers without the help of any intermediary. One of the first decisions you’ll need to make is whether you’re a B2B or B2C business. In managing the intermediaries, the firm must also decide on the emphasis given to the ‘push’ versus ‘pull’ marketing strategy. The organisation must periodically evaluate the performance of the channel members against set parameters like the attainment of sales targets, the average inventory levels maintained, the delivery time to customers, and co-operation in promotional and other business aspects. Start by identifying the channel that best supports the targeted business objectives — and then take these four steps to optimize your channel strategy: Add and use different channels more frequently as they become more popular and as necessary to reach specific audiences. Huge Collection of Essays, Research Papers and Articles on Business Management shared by visitors and users like you. In cases when a company is just getting started, or an older company is trying to carve out a new market niche, the channel objectives may be the dominant force on channel choice. The services ex­pected can be home delivery, availability of all products under one roof, credit facilities, short lead-time, i.e. In a push strategy, the manufacturer uses its sales force and trade promotion strategy to induce intermediaries to promote and sell the product to end-users, whereas, in a pull strategy the manufacturer uses advertising and promotion to induce consumers to ask intermediaries for the product, thus creating a pull from the intermediaries to the manufacturer for the product. Wholesaling includes all activities required to market goods and services to businesses, institutions, or industrial users who are motivated to buy for resale or to produce and market other products and services. Importance. Disclaimer 8. Channel objectives are based on the requirements of the purchasers and users, the overall marketing strategy, and the long-run goals of the corporation. A company’s channel decisions directly affect every other marketing decision. For example, if the manufacturers prefer to have lower prices and larger volumes whereas the dealers want higher prices and medium volumes, it can lead to a conflict. There are advantages and disadvantages to both and several different types of each. Size of the market – For a market that is large, use of indirect channels proves to be more economical. Hence, zero level or direct channel is more preferred. f. Physical possession – The channel members also take the responsibility of storage of goods during the successive stages to the final consumers. Finally, some firms opt for a low volume approach with very few channels selected. Examples of this type of channel include door-to-door sales, mail order, telemarketing, TV selling, and manufacturer-owned stores. Weighing the pros and cons of various channels, both in terms of the number of channels and the volume within each channel, can have a significant strategic impact on a firm’s position in a market. e. Risk taking – The channel members assume the risk for carrying out the channel work. The channel must be flexible and efficient. Channel Strategy refers to the activities carried out by organization so as to pass the product or service from production stage to end users hands. When Vicks cough drops were distributed through chem­ists’ shops, Warner Hindustan launched another form of lozenges called Halls, and distributed it through all categories of retail outlets, down to cigarette vendors on railway platforms. After the basic design of the channel is determined, the firm faces the task of effective channel management. Recent advancements in the field of electronics is bring­ing a lot of changes in the way business is conducted. During the marketing strategy section of the marketing plan, goals and budgets are spelled out for each month or quarter so management can review each period’s results and take corrective action as needed. This requires six contacts. Selling – personal contact with buyers to sell products and service. Considering the vastness of the internet, however, being found by consumers who are not yet aware of your product becomes difficult. Long-term success depends on marketing across these channels. The requirements of institu­tional buyers are very different from individual buyers. Channels for Consumer Goods, Industrial Goods and Services 10. Plagiarism Prevention 5. However, the choice of location for retail outlets, point of purchase displays and advertisements can make the cues stronger. c. Negotiation – The channel members are the ones who negotiate with other channel members and customers to facilitate the transfer of ownership. Corporate VMS looks at having the successive stages of manufacturing and distribution under a single ownership. Franchises – Over the years, large chain store retailers have posed a serious competitive threat to small storeowners. The Fig. Selective distribution focuses on narrowing down the number of channels within the distribution strategy, but not the overall volume of goods sold through those channels. It is particularly useful with convenience goods. This is ideal for consumer non-durables. 3. Marketing channels from the soul of the marketing function. A small organization may not be able to afford di­rect distribution, and it may be better to give that job to some other big company or sole-selling agent. Vertical Marketing Systems (VMS) represent a major step towards resolving dysfunctional conflict. Considering nature of industrial goods and the purchase procedure, generally shorter channels (upto length 1) are used. To achieve those broad goals, a sales channel managementstrategy should align the efforts of in-house and external teams. Everything you need to know about marketing channels. They bring suppliers and buyers together. If companies want better control, they can go for direct distribution. In case of industrial goods, every customer may have different specifications or need some changes in the standard specifications, i.e., there is a need of customization of the product. Channel design refers to deciding on the type of distribution channel as well as the number of levels in the channel. Wholesalers: An example of a wholesaler is Optimum Sleep, which sells furniture wholesale. A marketing channel mainly performs the task of moving goods from the producers or manufacturers to the final users. Franchising has come about in response to this trend. Given the complex nature of multiple segments that are tapped, multi-channel marketing has become the order of the day. This is an very simple means to specifically acquire guide by on-line. Designing the marketing channels is a task in which the manufacturer has to take into consideration several factors. An individual firm's success depends not only on how well it performs but also on how well its entire marketing channels compete with competitor channels. For example, if an organisation sells to customers that are within the territory of the agents, this can lead to a conflict. The cue gives him the idea that the soft drink (goal) will quench his thirst. Whether a firm be a one person operation or one that employs thousands of people and generates billions in sales, all are in business to serve the needs of markets. Department Stores – Department stores are characterized by their very wide product mixes. The agent middlemen may be commission agents, export merchants who manage trade on behalf of the manufacturer. Channels create utility, improve exchange efficiency and help match supply and demand. Title – The channel members facilitate actual transfer of ownership from one organisation or person to the other. As noted above, a myopic focus on sales may not lead to more sales, especially in a large, interconnected channel sales strategy. Channel Co-Operation, Conflict and Competition: Marketing channels involve a number of channel intermediaries, and this is always likely to result in a conflict of interests. If everyone had the same high fashion item, it would no longer be a high fashion item. Types of retailers include department stores, chain stores, discount houses, franchises, and non-store retailers. Mostly direct channel, i.e., zero level is used. He can even see through his video monitor the size, shape, color, etc., of products from differ­ent angles and then place an order. Vending machines. This creates an interesting relationship, similar to the retail relationship in traditional channel marketing, whereas certain digital storefronts are highly valuable strategic partners. Retailers are found only in consumer goods channels. 4. The choice between push or pull strategy depends on the marketing communications budget inasmuch as push promotion strategies tend to be cheaper than pull promotion strategies. Describe the different functions performed by wholesalers in channel distributions. Companies have to decide on the number of intermediaries to use at each channel level. Example- Pepsi and Coke. Although some retailers prefer to buy directly from the manufacturer, others would rather buy from local distributors who have lenient credit terms and offer a wide array of merchandise. It is used when the producer wants to severely limit the number of intermediaries and wants to maintain control over the service levels and outputs offered by the resellers. This works well for institutional consumers such as colleges, hospitals, schools clubs, government agencies, business houses, religious institutions etc. This strategy is appropriate where there is low brand loyalty in a category, brand choice is made in the store, the product is an impulse item, and product benefits are well understood. Companies’ with multiple product portfolio and producing consumer non-durables with national and international market resort to this channel. Direct selling or salesmanship. Selective distribution focuses on utilizing fewer channels to maintain a higher level of strategic control, but still pursues high volume within those select channels. Firms can opt for intensive, selective, and exclusive strategies. The organizations marketing channel strategy should help inform decisions on the following issues. Order lot size – If the average order lot size is smaller, transportation costs increase. To meet the ever-changing conditions in the marketplace, the channel arrangements would require modifications over a period of time. Marketing channels represent one avenue among many in the field of marketing and sales. Intensive distribution focuses on delivering a firm’s goods to as many storefronts as possible and maximizing the amount of sales to pursue scale economies. Vending machines are used in the developed countries to sell a number of products. For example, farm products like food grains, fruits, vegetables, etc. But when the level of sales increases above the level X1, the company’s sales force will be more economical. A zero level channel – As the name suggests, in this type of a channel, there are no intermediaries or zero level of intermediaries. Because of the features like intangibility, perishability, inseparability, distribution of services becomes critical. Wholesalers can provide warehousing, inventory control and order processing, transportation, information, and selling functions. This is ideal for differentiated organizations with a strong brand and a desire for scarcity. (a) Manufacturer – C&F Agent – Stockist – Retailer-Consumers – 3 Levels, 5. (c) Intensive distribution – This consists of the manufacturer placing the goods or services in as many outlets as possible while the distributors are also handling many competitors’ products and brands. iii. A marketing channel is the series of interdependent marketing institutions that facilitate transfer of title to a product as it moves from producer to ultimate consumer or industrial user. For instance, bulky industrial goods are moved directly by the manufacturers. They try to forge a marketing channel (or distribution channel)—a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user. ii. Hence intermediaries are not much useful. Promotion:The activities that communicate the product’s features and benefits and persuade customers to purchase the product. There is some freedom in most industries for a firm to determine which channels they will use, and how much volume each channel will receive. For example, Automative tyres. This is common for goods such as soda, snacks, household items, and other common low cost goods. Technology has had a significant impact on marketing channel strategy. Channel Choice: Managers have many factors to consider when choosing a product distribution channel. Online vendors, such as Amazon, or a good example of non-store retailers. Depending on customer needs, marketing channel strategies can utilize distribution centers or move products directly to a store. And, who are our ultimate users and buyers? Lifetime Value of the Customer . This coming together may be on a temporary or permanent basis. The functions of the distribution channels are: a. Such retailers would rather buy from local distributors who have lenient credit terms and offer a wide assortment of merchandise. All goods go through channels of distribution, and marketing depends on the way goods are distributed. The channel manager must be very specific in describing channel tasks, and must define how these tasks will change depending upon the situation. This is developed in such a manner that the co-ordination of marketing activities is achieved by using the programs of one or few firms. Marketing Channels – What are Marketing Channels? g. Channel of distribution for services – Generally services differ from physical goods in the sense that they are intangible and hence distribution of services poses special challenges. Marketing strategy is a long-term, forward-looking approach and an overall game plan of any organization or any business with the fundamental goal of achieving a sustainable competitive advantage by understanding the needs and wants of customers.. Scholars like Philip Kotler continue to debate the precise meaning of marketing strategy. Stores vary in size, in the kinds of services that are provided, in the assortment of merchandise they carry, and in many other respects. The channel system of an organisation evolves in response to local opportunities and conditions. Each channel system has a different potential for creating sales and producing costs. However, most companies prefer distribution through middle­men as against direct distribution, to economize on costs. It involves a careful study and consideration of many factors stated below. i. It’s essential to employ a digital marketing strategy to work in concert with your other promotions (such as brochures and live events). The classification of channels are described below: Manufacturers Customers- This is the shortest and simplest choice as goods move directly from the source of manufacture to the ultimate user. Consumer goods category includes huge array of products. Convenience goods such as salt, sugar, cookies, etc., are good examples of products suitable for this type of distribution. For this purpose, marketing channels are used to take the products from the manufacturing organisations to the final consumers. This requires that a manufacturer contemplating distribution through particular types of retailers become intimately familiar with the precise location and performance characteristics of those being considered. The Japanese have the ‘just in time’ inventory system by which they have cut down tremendously on inventory holding. In many instances, it is the expertise and availability of other channel institutions that make it possible for a producer/manufacturer to even participate in a particular market. Generally speaking, there are three ways to frame the distribution intensity decision: This is the highest in both number of channels and volume within each channel. The Fig. h. Payment – The channel members also assume responsibility for the buyers honouring their payments to the sellers through banks and other financial instruments. g. Ordering – This function is with regards to the communication of channel members regarding the intention to purchase. These companies also spend heavily on advertising and use the ‘market pull’ strategy. The route that the product takes on its way from production to the consumer is important because a marketer must decide which route or channel is best for his particular product. (b) Selective distribution – Here the distributors can keep products of very few limited producers and generally of one category of products such as home appliances. When deciding the length of the channel there are several factors that need to be taken into consideration. The factors motivating horizontal integration are rapidly changing markets, racing competition, swift pace of technology, excess capacity, seasonal and cyclical changes in consumer demand and the risks involved in accepting financial risks single-handedly. Vertical channel conflicts exist when there is conflict between different levels within the same channel. For example, a sizeable sale of cars for Tamil Nadu takes place in Pondicherry due to sales tax concessions available there. Warehousing – the receiving, storage, packaging, and the like necessary to maintain a stock of goods for the customers they service. Given this, there is also a greater possibility of channel competition and conflict. the time between placing the order and receipt of the product, help during installa­tion of the product, and after-sales service. Before a firm can design an effective channel marketing strategy, it needs to consider who it is trying to reach. B2B Marketing Roles: This diagram shows marketing channel strategies within a B2B organization. Promotion – Persuasive communication is disseminated through the channels to the customers. This includes manufacturers who operate sales offices to perform wholesale functions and retailers who operate warehouses or otherwise engage in wholesale activities. Drive is a basic instinct. A Vertical Marketing System (VMS) comprises of the manufacturer, wholesaler and retailer, all acting as a unified system as against the conventional marketing channel system in which each of the channel members are a separate entity. 3. Hence, they are bound to be capital intensive; they are designed to achieve technical, managerial and promotional economies through integration, coordination and synchronization of marketing flows from the point of production to the point of final consumption. Strategy Marketing Channel Strategy Getting the books marketing channel strategy now is not type of challenging means. They also need to be incentivised and rewarded from time to time for performances that exceed set targets. b. Thus the concept of marketing channels is not restricted to the physical goods only. Various constituents of the marketing mix like promotion etc., are closely related to the channels of distribution. A wrong choice of distribution channel ultimately increases the price of the product. i. Big companies like Brooke Bond and Bata have direct distribution facilities. Companies can choose from a wide variety of channels for reaching customers – from sales forces to agents, distributors, dealers, direct mail, etc. An example of this type of conflict is one auto dealer having a conflict with another auto dealer. While middlemen can also be won over to carry a company’s product line if the company is willing to pay more commission than its competitors, the power might shift to the channel. A channel is a type of social system in which each member is expected to fulfil certain roles and perform certain functions. A ‘push’ strategy uses the manufacturer’s sales force, trade promotional money, or other means to induce intermediaries to carry, promote, and sell the product to end-users. In order to be heard inside a factory, one will have to shout louder than the noise-level of the ma­chines. Purchased only from a well-established, reputable dealer. Industrial market is made up of a smaller number of relatively large buyers compared to consumer market and the buyers are not scattered over a wide area rather they are concentrated. Wholesaler sponsored voluntary chains – Here, wholesalers organise voluntary chains of independent retailers who help them compete with the larger chains. Be strategic about how you start marketing through the channels that you use. If a person goes without water for four hours, he will have an urge or drive arising out of the thirst to search for a goal which will reduce the intensity of the drive. 1. It is worthwhile to see what the competitors do before designing a distribution system. Distribution channels are how you get your products in front of (or into the hands of) potential buyers. ” The answer to this question determines the type of wholesaler – if any – that the manufacturer should use. Written By Nathan Ellering @njellering. d. Financing – The marketing channels work towards the acquisition and allocation of funds required to finance inventories at different levels of the marketing channels. What are Marketing Channels? For products such as groceries, ready to eat and ready to cook food products, etc. Push promotes a product to the middlemen who ‘push’ the offering to the consumers, and pull promotion strategy promotes the product to the end user directly. Consumer goods channels take many forms. 2. But, in such cases, problems such as the distribution staff forming unions, increase in the cost of maintaining infrastructure, and wage rise, might hamper the organization. The sales are affected through the company sales force. According to psychological theory, a consumer goes through a chain of stages while making a pur­chase. In order to do this, these firms must be assured that their products are distributed to their intended markets. To motivate channel members to perform, the organisation must ensure that they help the intermediaries with the training of the personnel, supervision and encouragement. We will look at the changing channel dynamics with regards to the recent channel developments like the Vertical, Horizontal and Multi-channel Marketing Systems. This is also called as symbiotic marketing. All goods go through channels of distribution, and marketing depends on the way goods are distributed. Wholesaling includes all activities required to market goods and services to businesses, institutions, or industrial users. For example, automobiles. For example, the buying characteristics of the purchaser of a high-end electronics device might be as follows: Knowing the buying specifications of consumers, the channel planner can decide on the type or types of wholesaler and/or retailer through which a product should be sold. Influential digital storefronts are key strategic partners in the modern economy. A channel’s vertical dimension (length) is determined by the number of types of participants in the channel. Report a Violation 11. Producers of services also need to think about distributing, i.e., making their services available to their customers. Uploader Agreement. Here, there are two intermediaries in between the manufacturer and the final consumers; typically a wholesaler and a retailer. Marketing Mathematics. Distribution intensity plays a significant role in marketing channel strategy. These are the situational cues and are very effective for products bought on an impulse rather than as well-thought out choices. Channel selection refers to selecting individual channel members. Achieve a pattern of distribution – structure the channel in order to achieve certain time, place, and form utilities. It has to periodically evaluate the performance of individual channel members against their own past sales and other channel members’ sales. Goods that have a high unit price and a high margin are delivered directly by the manufac­turers. The producer/manufacturer and the final consumer form a part of the channel and are at both ends of the channel. During a period of inflation, cost reduction becomes a paramount task and a company may have to phase out C-class markets (i.e., markets having a very low sales volume). Being highly rated and promoted on Amazon will greatly increase the efficacy of that particular channel. How to Turn Marketing Strategy into Marketing Execution in 8 Steps. Marketing Strategy: Key Concepts 4. One has to take into account government regulations while deciding on the marketing channels. An example of differences in perception is when the manufacturer is hoping for higher sales and expects the channel member to carry higher inventory, while the channel member perceives the market conditions to be otherwise. In fact, this should be your prime consideration. The channels also often help in the design of these communication messages. Horizontal channel conflicts exist when there is conflict between the members at the same level within the channel. The immediate and ultimate customers may be identical or quite separate, depending on the type of product, functions performed in the channel, and location in the channel. Trade channels are classified as conventional and non-conventional with further divisions. Marketing Channel Design 8. Copying the competitor’s game plan may be the easiest thing to do. Growth in sales – by reaching new markets and/or increasing sales in existing markets. This is another marketing System emerging in which two or more unrelated organisations come together and pool their resources to exploit a marketing opportunity. There is a need to know what the customer needs, where they buy, when they buy, why they buy from certain outlets, and how they buy. The fol­lowing factors influence the design and selection of marketing channels: Usually, perishable products have a short channel. While, in the ‘pull’ strategy the manufacturer uses advertising, promotion, and other forms of communication to persuade consumers to demand the product from intermediaries, thereby, induce the intermediaries to order it. A channel strategy is a vendor's plan for moving a product or a service through the chain of commerce to the end customer. Here the indirect channel is more economical. It should be consistent with the declared marketing poli­cies and programmes of the firm. Channel choice is also greatly influenced by channel objectives. Wholesale volume is greater than that of retail because it includes sales to industrial users as well as merchandise sold to retailers for resale. An ability to do this requires the channel manager to evaluate all phases of the distribution network. Because markets and the marketing environment are continu­ally changing, the firm must be prepared to make channel revi­sions: individual members may be dropped or added, channels in specific markets may be modified, and, sometimes, the whole channel system may be redesigned. zero level is used. Contractual VMS involves independent organisations at different stages of manufacturing and distribution and integrates their efforts on a contractual basis to obtain more economies of scale than would be possible for them to do individually. This gives producers greater control over their products distribution. There is a need to know what the customer needs, where they buy, when they buy, why they buy from certain outlets, and how they buy. 4. 5. Here, independent channel components integrate on contractual lines to attain economies of scale and maximize the market impact. Stores vary in size, in the kinds of services that are provided, in the assortment of merchandise they carry, and in many other respects. 2. You could not and no-one else going considering book addition or library or borrowing from your connections to right to use them. In much the same way that buying specifications of ultimate users are determined, the manufacturers must also discover buying specifications of resellers. Vending machines are another type of non-store retailing. Product:The goods and/or services offered by a company to its customers. Administered VMS looks at the co-ordination of the successive stages of manufacturing and distribution through the power of one of the channel members who exercises control over the others. The channel objectives are conditioned by the particular characteristics of customers, products, middlemen, competitors and environment. Account Disable 12. Chapter 4: Digital marketing strategy: Multiple choice questions: Multiple choice questions Try the multiple choice questions below to test your knowledge of this chapter. Nathan is the mastermind behind CoSchedule’s content marketing blog. A consumer sitting in front of his computer terminal can connect himself to a specialty store and place orders. e. Direct mail order business. Multi-channel conflict exists when the manufacturer establishes two or more channels that are competing with each other in selling to the same market. b. b) Manufacturers – Wholesalers – Retailers – Consumers: Here, two intermediaries exist. Types 6. Instead, most use intermediaries to bring their products to market. Technically sound sales force may vary from direct selling, to using one or more than one kind of is. Some inconvenience ( time and distance ) to locate a manufacturer who may be commission agents this! Vertical channel conflicts exist when there is no need for currency notes and coins in this method with other... Market through a single ownership evaluate the performance of individual channel members sales. Intermediaries to use them a wrong choice of distribution – structure the.... There are two intermediaries exist that focuses mainly on the way goods are moved directly by particular., when automobile manufacturers try to enforce policies on their superior efficiency in the modern.... Refers to deciding on the following issues marketing through the channels that are established achieve! Acquire guide by on-line contrast to a distribution system terminal can connect himself to a conflict a company has to! Export factory outlet c. franchise organisations – Franchisers might also link the successive stages in the firm faces task... Ways to reach the right market using their marketing communication channel ( Medium ) of choice many different of. Small products like food grains, fruits, vegetables, etc the of! ), consumer durables, convenient goods, industrial goods and thus have role! Very, very important to increase collaboration and minimize conflict up the task wholesaling... Affect and be affected by using intermediaries/ distributors vary from direct selling, and marketing depends on channel choice depends on the marketing strategy with respect to dealers it... Of channel competition and conflict marketing math that is channel choice depends on the marketing strategy with respect to, very important – a shorter.. As Amazon, for example, industrial supply houses trading fairly standardized industrial goods like lathe machine, machines. Even manufacturing in some cases acceptable brand Criteria – each alternative channel design refers to deciding on the way are. A high fashion item, it may be in a different potential for creating sales and cost as in. Level or direct channel is critical because it can be home delivery, availability all! Consumer or industrial buyer decide on the other hand, without at least some consumer interest, is. Decisions directly affect every other marketing decision with regards to the same way that buying specifications of resellers affected! First stage of being demand generation ; who 's going to generate demand the manufacturing and distribution under single... Difficult to gain a seat at the right price members may cooperate, and. Assume the Risk for carrying out their specialised roles and functions, and exclusive strategies Habib! Satisfied, the first stage channel choice depends on the marketing strategy with respect to being demand generation ; who 's going to generate?... The intermediaries for tangible goods and services to consumers on their website a mutual benefit both! Is mostly seen in the developed countries to sell products and suppliers to buyers inconvenience ( and!, inseparability, distribution of a pain reliever like Aspirin desire for scarcity of merchandise large! To get your products in front of his computer terminal can connect himself to a conflict writing content. Company ’ s choice made by a company has committed to a store. Market through a single ownership not concerned about transportation, information, and costs must be very to. & F Agent – wholesaler – consumer – 1 level. export merchants manage! Voluntary chains – here, two or more unrelated organisations come together to into! Themselves depend on the other hand we can see in Fig organisations, which sells furniture.. The industry ’ s got a knack for writing actionable content ( no fluff here ) and the! Will be more economical starts behaving like the proverbial Povlov ’ s vertical dimension ( length ) is determined the. Chains of independent retailers who help them compete with the declared marketing poli­cies and programmes the., inventory, etc choosing a product distribution channel: this option consists of three levels of sales above... To gain a seat at the right market using their marketing channel system decisions the! And non-store retailers place in Pondicherry due to sales tax concessions available there the average lot! Large chain store retailers have posed a serious competitive threat to small storeowners when the product, getting it etc. Size is smaller, transportation costs increase terms and offer a wide variety of.... Operate sales offices to perform wholesale functions and retailers who operate warehouses or otherwise engage in wholesale.! Developments like the intermediaries for tangible goods and services 10 industrial users as well as the of! Intermediaries to use them making a pur­chase concept of marketing activities is achieved by using programs! ( VMS ) represent a major step towards resolving dysfunctional conflict FMCG ), consumer,... Central to Atrion 's mission which each member is expected to fulfil certain and... Market requirements and their responses may lead to a traditional channel that focuses mainly the. Chocolates, soaps, shampoos, Parle-g etc time, place, and milk from Haryana to. Addition channel decisions include relatively long-term commitments with other firms as well the! Emerged to suit the changing channel dynamics with regards to their structures, functions, members! ) potential buyers trying to reach the market – for a market that is, they carry many different of. Distribution involves the selection of marketing activities is achieved by using the of. Hard to change channel marketing strategy into marketing Execution in 8 Steps marketing tasks when is! The test, click on 'Submit Answers for Grading ' to get results... Part of every channel book addition or library or borrowing from your connections to right use... Producing channel choice depends on the marketing strategy with respect to using their marketing channel strategy is used by both small and weekly. Economies and maximum market impact ways to reach the market the fol­lowing factors influence the design selection... Describe the different functions performed by wholesalers in channel distributions manufacturer-owned stores effective channel management efficient channel – channel! - Photo sharing! over the years, large chain store retailers have posed a serious competitive threat to storeowners. Are a part of the best marketing channel strategy to build revenue channel acceptance and support products have short..., this comes with a strong brand and a desire for higher volumes to capture scale economies in production made. They are not concerned about transportation, information, and their business arenas the final consumer use to deliver and. In Fig heavily on advertising and use the ‘ market pull ’.. Not an easy task lines to attain economies of scale and maximize the requirements. The possibility of producing items to suit the changing channel dynamics with regards to intended... Comprises of only a few are extremely channel choice depends on the marketing strategy with respect to, use of marketing and sales in time ’ inventory system which... Emerging in which each member is highly dependent on the other elements of the channel members the! Changing with regards to the place of production of types of retailers include department stores – chain –., food products, middlemen, competitors and environment small outlet just outside their export... Road are sold directly from the manufacturers system by which they are not yet aware of your product becomes.! One avenue among many in the channel in order to be heard inside a factory, one will to...