Nature And Importance Of Marketing Channels Pdf

nature and importance of marketing channels pdf

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Marketing channels, such as distributors, wholesalers and retailers, provide your business with three kinds of functions: buying products for resale to customers, distributing products to customers and supporting sales to customers through financing and other services.

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The Importance of Marketing channels and Distribution channels

Channel marketing focuses on the distribution of products from the manufacturer to the consumer. While channel marketing is usually applied to products, it can also be used to market ideas and services. Marketing channels help organizations expand their reach and their revenue. However, each marketing channel will offer a different combination of coverage and performance, and so they may be used in combination. Marketing channels may include traditional distribution models — which include producers, wholesalers and retailers — or variants that cut out one or two components. For examples, companies like Dell and Avon avoid wholesalers and retailers by using their own warehouses and salespeople to sell to consumers.

Marketing channels serve many functions, including creating utility and facilitating exchange efficiencies. Image Courtesy : eating-for-england. Although some of these functions may be performed by a single channel member, most functions are accomplished through both independent and joint efforts of channel members. When managed effectively, the relationships among channel n embers can also form supply chains that benefits all members of the channel, including the ultimate consumer. Middlemen have a role in providing information about the market to the manufacturer. Developments like changes in customer demography, psychography, media habits and the entry of a new competitor or a new brand and changes in customer preferences are some of the information that all manufacturers want.

President of Marketing, to create a speech that will discuss entrepreneurial marketing. This speech will give insights on the journey of the marketing process as a start-up. I will also discuss what has been done by the company over the past few months and the successful approaches that has been used. Introduction Entrepreneurs do not normally realize the importance of marketing until they. The social media in this case refer to varied modern channels of communication and transport in the world. There are various types of social media channels as Facebook, YouTube, and Twitter among others as Skype and emails.

Distribution Management

The distribution channel simply refers to the path or route through which product moves from producer to ultimate customer. It is through distribution channels that businesses are able to deliver their products to customers. The distribution channel overcomes the place barrier in delivering the products. Distribution channels have a very efficient role in the smooth functioning of businesses. Some of the importance are discussed below:.

Only a minute portion of these goods and services were consumed at the point of production. Furthermore, only a very small fraction was purchased by the ultimate consumers directly from the final producers, and of course, virtually none was purchased from finished product producers' suppliers. Yet, somehow, trillions of dollars worth of goods and services throughout the world manage to overcome these gaps of space and time and ownership, and reach the ultimate consumers. It is the marketing process which performs the several functions required to bridge the gap between production and consumption. The cost or value of this process for the four great economic powers was probably of the magnitude of billion dollars. Even for a single product, these functions are seldom performed by one firm, but rather are performed by a sequence of firms. The particular sequence of firms that performs three of these marketing functions— the movement of ownership, the negotiation of title, and the physical movement of products—is usually defined as the marketing channel.

January 4, Leave a comment. What is the importance of Marketing channels and distribution? But before we discuss the importance of these we should first define what is marketing channel and distribution. Marketing channel is a series of ways or activities needed essentially to transfer the ownership of goods, and to move goods, from the point of production to the point of consumption. This consists of the institutions and all the marketing activities in the marketing process. The distribution channel on the other hand is defined as a chain of intermediaries, each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user.

Distribution Channels – Definition, Types, & Functions

Distribution channel s are a key element in all the marketing strategies that revolve around the product. They help you reach the customer in a way to maximise your revenue and brand awareness. A distribution channel also called a marketing channel is the path or route decided by the company to deliver its good or service to the customers.

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10 Most Important Functions of Marketing Channel


Christina H.


Marketing channels perform many key functions. Some help complete transactions while others help to fulfill the completed transactions. Information: Gathering and distributing marketing research and intelligence information about actors and forces in the marketing environment needed for planning and aiding exchange.



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