Introduction to Marketing

Channels
Marketing channels are sets of interdependent organizations involved in making a product available for use
or consumption. They are the pathways a product follows after production, culminating in purchase and
use by the final user.

by beth el
Definition and Types of
Marketing Channels
Producers utilize intermediaries - wholesalers, retailers, brokers,
manufacturers' representatives, and sales agents.
Marketing channels vary in types and functions, categorized as merchants,
agents, and facilitators, who perform different roles in the distribution
process.
Importance of Marketing
Channels in Logistics
Decisions about the marketing channel system are critical, as
channel members collectively earn significant margins that account
for a large percentage of the ultimate selling price.

Marketing channels also represent a substantial opportunity cost and

have a fundamental role in converting potential buyers into profitable
orders and must not just serve markets, but also make markets.
Role of Marketing Channels in Reaching
Customers
1 Producers' Advantage
Delegating some selling job to
intermediaries provides several benefits,
such as greater efficiency in reaching target
markets and allowing producers to focus on
their main business.
2 Channel Functions and Flows
Marketing channels overcome time, place,
and possession gaps, perform key functions,
and facilitate the transfer of goods and
services from producers to consumers.
Strategies for Effective Marketing Channel
Management
Push Strategy Suitable for low brand loyalty, impulse items, and
widely understood product benefits.

Pull Strategy Ideal for high brand loyalty, high category involvement, and when consume
Marketing Channel Function and Flows

1 Member Functions
Ranging from gathering information and developing communications to overseeing the
actual transfer of ownership.

2 Channel Development
The system evolves based on local opportunities and conditions, with the possibility of
using different channels in different markets.

3 Importance of Channels
Decisions about the marketing channel system are among the most critical facing
management, with channel members collectively earning margins that account
for a significant portion of the ultimate selling price.