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Placing and distribution channel (Channel members Functions (Information,…
Placing and distribution channel
A set of interdependent organizations that help make a product or service available for use by the consumer or business user
Downstream process of a supply chain
Route for delivery of finished products to the end users
Channel members Functions
Information
Gathering and distributing marketing research and intelligence information about actors and forces in the marketing environment needed for planning and aiding exchange
Promotion
Developing and spreading persuasive communications about an offer
Contact
Finding and communicating with prospective buyers
Matching
Shaping and fitting the offer to the buyer's needs, including activities such as manufacturing, grading and packaging
Negotiation
Reaching an agreement on price and other terms of the offer so that ownership or possession can be transferred
Channel Levels
Conventional marketing channel
A channel consist of one or more independent producers, wholesalers and retailers
Separate business seeking to maximize its own profits, even at the expense of profits for the system as a whole
Vertical marketing system
A distribution channel structure in which producers, wholesalers and retailers act as a unified system
Channel Objectives
Targeted levels of customer service
The company should decide which segments to serve and the best channels to use in each case
Influenced by the nature of the company, its products, marketing intermediaries, competitors and the environment
Number of Intermediaries
Intensive Distribution
All possible retailers are used to reach the target market
Associated with the distributions of convenience goods
Eg : soft drinks, milk and greeting cards
Selective Distribution
A small number of retailers are used
Associated with shopping goods, items for which teh consumer will make a price or value comparison before purchasing
Eg : Home appliances and apparel
Exclusive Distribution
Only one retailer is used in the trading area
Identified with specialty goods, usually high prestige branded products that the consumer expressly seek out
Eg : Rolex watches