DESIGNING THE

MARKETING
CHANNELS
SALES AND DISTRIBUTION MANAGEMENT
D O N E B Y:
T SUNDAR RAJAN
727721EPMB108
INTRODUCTION
Marketing channels are set of mutually dependent organizations involved in the process of
making product or service available for utilization. It is established in academic studies that
Marketing channels are the means by which goods and services are made available for use by the
customers. All goods go through channels of distribution, and marketing will depend on the way
goods are distributed. The direction that the product takes on its way from production to the
consumer is imperative because a marketer must choose which channel is best for his particular
product. It can be said that channel is the link between manufactures and purchasers. Decisions
about the marketing channel system are decisive for management.
CHARACTERISTICS
FUNCTIONS
•Logistics and distribution: Marketing channels play an important role in transporting the product
or service from the manufacturer to the end consumer. They are responsible for ensuring that the
chosen products reach customers through their distribution network at an affordable price and in a
timely manner.
•Promotion: Marketing channels also further promote a product by providing marketing messages
and other advertisements to targeted audiences, which helps them build a strong brand image and
reputation.
•Transactional functions: These channels are vital to enabling the transfer of product ownership
from manufacturers to consumers. They help businesses in billing, invoicing, and collecting
payments from customers.
•Facilitating functions: Marketing channels also offer other important services like storage,
packaging, credit facilities, and after-sales service that add value to the product or service being
offered.
IMPORTANCE
Marketing channels are the tangible links between a company and its customers. They are the
enablers of business that allow companies to deliver their products or services to the final
customer.
They are important for the business as they:
•Bring the offering to market
•Help business reach its intended target audience
•Help the brand build relationships with customers
•Promote and sell the product or service on behalf of the manufacturer
Moreover, marketing channels are not only important for businesses wanting to reach customers
and generate revenue, but also for consumers as they enable them to have access to different
products or services in a convenient manner at competitive prices.
MARKETING CHANNELS EXAMPLE
Every company in existence use one or more marketing channels to reach their target customers. Some of the
most common examples include:
Nike
Nike is a famous shoe manufacturer that sells its products to customers through both online and offline channels.
The company uses a mix of both direct and indirect channels where it sells its products directly using its websites
and franchise model, and indirectly on online marketplaces and offline retailers using intermediaries.
Apple
As one of the most popular technology companies in the world, Apple sells its products through both online and
offline, direct and indirect channels.
The company sells its products directly using its own website and physical stores, and indirectly through
intermediaries such as online marketplaces and offline retailers.
CONCLUSION
In order to maximize profit, companies must manage their marketing channel effectively.
Management of marketing channel refers to the process of analysing, planning, organizing and
controlling its marketing channel. In marketing channel two different activities occur. One is the
establishment of physical distribution system and other is management of marketing objectives.
Management of marketing channel involves all functions of marketing mix which include
product, price, physical distribution, program and people. The physical distribution system and
channel structure is established through which products flow in the marketing channel.