Marketing channel

From Wikipedia, the free encyclopedia
Jump to: navigation, search
For the chain of intermediaries, see distribution 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 and, as such, which consists of all the institutions and all the marketing activities in the marketing process. A marketing channel is a useful tool for management.[1]

Roles of marketing channel in marketing strategies

  • Links producers to buyers.
  • Performs sales, advertising and promotion.
  • Influences the firm's pricing strategy.
  • Affecting product strategy through branding, policies, willingness to stock.
  • Customizes profits, install, maintain, offer credit, etc.

Channel Marketing[edit]

Brands involved in selling through marketing channels (also commonly known as distribution channels) have relationships with the channel partners (local resellers, retailers, field agents, etc.) that sell their products or services to the end customer. Brands that aim to maximize sales through channel partners provide them with advertising and promotional support that is pre-configured and often subsidized by the brand.

Coordinated Channel Marketing - Brands carry out online and offline advertising on behalf of channel partners to aid them in generating sales of their branded products. Those online and offline marketing initiatives are can either be isolated or coordinated to inform one another.[2]


An example of this is an apple orchard: Apple orchard > Transport > Processing factory > Packaging > Final product to be sold > Apple pie eaten

An alternative term is distribution channel or 'route-to-market'. It is a 'path' or 'pipeline' through which goods and services flow in one direction (from vendor to the consumer), and the payments generated by them flow in the opposite direction (from consumer to the vendor). A marketing channel can be as short as being direct from the vendor to the consumer or may include several inter-connected (usually independent but mutually dependent) intermediaries such as wholesalers, distributors, agents, retailers. Each intermediary receives the item at one pricing point and moves it to the next higher pricing point until it reaches the final buyer.

Marketing Channels can be long term or short term.

Armstrong, G. (2009). Marketing: an introduction ([European ed.). Harlow, England: Financial Times Prentice Hall.

Short term channels are influenced by market factors such as: business users, geographically concentrated, extensive technical knowledge and regular servicing required, and large orders. Short term product are influenced by factors such as: perishable, complex, and expensive. Short term producer factors include whether the manufacturer has adequate resources to perform channel functions, Broad product line, and channel control is important. Short term competitive factors include: manufacturing feels satisfied with marketing intermediaries' performance in promoting products.

Long term market factors include consumers, geographically dispersed, little technical knowledge and regular servicing is not required, and small orders. Product factors for long term marketing channels are: durable, standardized, and inexpensive. Producer factors are manufacturer lacks adequate resources to perform channel functions, limited product line, and channel control not important. The competitive factors are: manufacturer feels dissatisfied with marketing intermediaries' performance in promoting products

Armstrong, G. (2009). Marketing: an introduction ([European ed.). Harlow, England: Financial Times Prentice Hall.


References[edit]

  1. ^ American Marketing Association
  2. ^ Shusterman, Jared. "Coordinating Your Channel Marketing Initiatives". http://www.sproutloud.com/. Retrieved 22 January 2014.