Marketing Channel

A marketing channel has been defined as a system of relationships existing among businesses that participate in the process of purchasing and selling products and wait ons.

Channel intermediaries be those organizations that facilitate the dispersion of goods to the ultimate customer. The complex roles of intermediaries may include taking somatogenetic ownership of products, collecting payment, and offering after-sales service. Marketing channel steering refers to the choice and control of these intermediaries.

As more and more tasks be passed onto intermediaries, the producing company starts to lose control and power over its products and how they are sold. A key part of channel management and so involves the recognition that networks of intermediaries represent social systems as well as economic ones.

The value chain of an organization describes the activities involved in the manufacture, marketing and delivery of a product or service by the inviolable.

In order to decide whether a firm should undertake its own distribution direct to consumers or whether it would be more efficient and effective to use intermediaries, it is necessary to find the functions of these intermediaries. Consumers often fatality only a limited touchstone of a wide range of goods, goods that are conveniently make available under one roof (i.e. in a retail supermarket). Intermediaries stack help defeat this discrepancy of multifariousness by reducing dramatically the number of contacts required amidst suppliers and the end customers (see Figure 14.3, p342).

In many cases, intermediaries can study superior knowledge of a target market compared to manufacturers. Retailers can therefore add value to the producers goods by tailoring their offerings more closely to the specific requirements of consumers.

Intermediaries help to overcome two types of gap: ·         A location gap occurs out-of-pocket to the geographic separation of producers and the consumers of their goods.

·         A time gap takes mooring between when consumers want to actually purchase products and when manufactures produce them (e.g.

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