Marketing Channels

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What is a 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 is a formal structure for sales and distribution.


Role of Marketing channel
Links producers to buyers.

Performs sales, advertising and promotion.

Transport, store, and deliver products .

motivate, communicate, and provide services for

customers
Kinds of Marketing Channels
To reach the target market, marketers use three
kinds of marketing channels

Communication channels:
Two-way systems, with information flowing
from the marketer to the consumer and back from the
consumer .
Includes advertising, promotional literature,
trade promotions, mail, telephone campaigns, product
training, and any vehicle of marketing information .
Marketing channels:
Distribution Channels :

The act of transferring product titles from one


channel member to another require a series of
intermediaries such as wholesalers, brokers, agents, and
retailers before the final act of transferring the product to
the consumer is completed
Marketing Channels:
Service Channels :

Used to carryout transactions with potential buyers.


Service channels include warehouses, transportation
companies, banks, and insurance companies that
facilitate transactions.

Marketers face the design problem of choosing the


best mix of communication, distribution and service
channels for their offering.

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