Marketing Channels

2) Explain the role of channel intermediaries in the product distribution process. Why is their role important?

Distribution channels are organized in several ways: conventional, vertical, horizontal and multichannel (Kern R. 2013). Some of these organizational methods are more structured than others. When a distribution channel deals with more than one independent producer, such as wholesalers and retailers, the channel is known as a conventional distribution channel. (Kern R. 2013) These channels are not normally known to be strong and typically don’t give the customer the quality of product that they deserve. In a vertical marketing system, the retailers, wholesalers and producers, join forces to create a unified front, promoting an individual product (Kern R. 2013). Vertical distribution channels are stronger than the conventional distribution channels because all of the companies involved carry some of the load of power. (Kern R. 2013) In a horizontal distribution channel, companies join up and combine all of their finances and resources, in order to take on more than one company or product (Kern R. 2013). A multichannel distribution channel is where a large corporation uses two or more marketing channels to better target their desired customer segments (Kern R.

As mentioned in an earlier assignment, there are three main types of distribution channels. The first is the channel that goes from the producer, then to the wholesaler, then to the retailer or sells to the consumer. The second channel starts with the producer who sells straight to the retailer, who then sells to the consumer. The third channel goes directly from the producer to the consumer. Channels one and two are classed as indirect marketing channels, whereas channel three is a direct marketing channel as it goes straight from producer to consumer.

Potential channels included: Heavy supply houses and heavy equipment distributors - provided access to a wide market but also absorbed additional profit margins. More importantly, they were unlikely to hold the enthusiasm needed to actively promote CMI’s pads and educate the market. Manufacturer’s reps – were commission-based transaction-driven salespeople. Reps held strong industry connections and offered access to a wide market without increasing labor costs. On the other hand they held low brand loyalty and could be discouraged by complex time consuming transactions requiring market education. CMI was also considering In-house direct sales force – they would have offered strong brand loyalty, product knowledge and professionalism but also take longer to gain market coverage and demand large expenditure on labor and training. CMI eventually decided to sign manufacturing reps who sold their pads to various distributors and supply houses.

A marketing channel is simply a path that flows from sellers to end-users (customers). Traditional brink and mortar marketing channels can include intermediaries such as manufacturers’ agents, wholesalers,

This task I am going explain the process of distributing goods through different channels from the manufacturer to the customers. The term distribution means the process of delivering, storing and selling goods, so that they can be used by customers. (Source- Intermediate Retail and Distribution, Delivering is about what types of transport which are used to carrying and delivering goods, the types of transport is going to be Rail, Road, Air, Water for example rivers, ocean cargo and canals and People. Storing is about where the goods are going to come from and where they are going to be stored. Selling is going to be where you are going to sell the goods

Marketing channels are very important to both the manufacturer and the consumer. These channels are the way the manufacture releases their product to the consumer for purchasing. Manufactures can choose either a direct channel which is the means of selling customers or accepting orders from them. A sales force calls on customers and prospects to present information on products and persuade them to place orders. Retailer channel is the channel that manufacturers sell their goods directly to large retailers such as Amazon which then sell onto the final consumers. wholesaler channel typically buys and stores large quantities of several producers’ goods and then

Task 1 - Describe the distribution process through different channels from the manufacturer through to the customer for the following; an independent retailer and a multiple retailer. (P2)

Decisions relating to the channels of distribution for a product or service are part of the strategic marketing plan. In that plan, the target market will have been specified along with target levels of market share, market coverage, customer service and so on. The channels of distribution used by an organisation must be capable of assisting in reaching these targets. Moreover, the establishment of a distribution system can take a long time, perhaps several years, and so decisions about the channels of distribution cannot be taken lightly, and have to be taken with a view to the longer term since it is not usually that easy to switch between channels.

In the uncertain fluctuating market of today, it is essential for a company to hold on and face those uncertainties in order to survive. Consumers can be an aid for a company's survival, thereby it is essential for consumers to get the goods of a company whenever and however they need them. Here is where distribution channels come in and give hand. "Channels of distribution are the different paths that goods passed through in moving from the producer to the consumer", (Meyer et al, 1988). With the help of distribution channels, companies are able to overcome the time, place and possession gaps that separate goods and services from the consumers. As said by Aaker (1984), access to an effective and efficient

Marketing channels are the courses to advertise used to offer each item and administration that buyers and business purchasers buy all around on the planet. An advertising channel is an arrangement of reliant association required during the time spent making an item or administration accessible for use or utilization (Coughlan, 2006). A marketing channel can be characterized as trade connections that make client esteem in the securing, utilization, and attitude of items and administrations. Promoting channels dependably rise out of an interest that commercial center needs be better off. Nonetheless, advertises and their necessities never quit evolving; hence, showcasing diverts work in a condition of consistent change and should always adjust to go up against those progressions. From its beginning to its contemporary standing, the advancement of promoting channels thought can be partitioned into four phases. (Pelton, 2002)

on sales volume, and they can sell to wholesalers as well as retailers. In B2B

Most businesses use third parties or intermediaries to bring their products to market. They try to forge a "distribution channel" which can be defined as

How to management distribution n system for effective performance. The company or firm should know the degree of channel control desired, by controlling the channel, the producer attempts to ensure that this product will receive the necessary sales push as well as any other essential elements needed to present the product properly and satisfy and customers.

What is the importance of Marketing channels and distribution? Marketing channels has been used in business operations for a long time. A marketing channel is made by the people, organizations, and activities necessary to transfer the ownership of goods from the point of production to the point of consumption. It is the way products and services get to the end-user, the consumer; and is also known as a distribution channel. Distribution channels is a network of firms that are interconnected in their quest to provide sellers a means of infusing the marketplace with its goods and buyers purchasing of those goods. (Iacobucci, 2013) Distribution is one of the most important features that one must consider in undertaking even a simple marketing channel. Distribution and Marketing channels are very important because they are the ones who help us find the products and services that we greatly need. (Retrieve from Importance of Marketing) Today, electronic delivery sends information to ones’ computers, smartphones, and other devices in ways that allow for more immediate and continuous access anywhere, anytime, and with a better filing system than paper notices. (Swire & Ahmad, 2015) This allows customers to receive electronic notices and interact with their accounts regardless of location, which provides much desired flexibility and convenience. Therefore, one needs to know the important role that marketing channels play to help the company succeed. Marketing channels increase the