Definition. A channel member is one part of the organized network of institutions which, in combination, perform all the functions required to link producers with end users. Channel members may include manufacturers, wholesalers agents, distributors, and retailers.
Logistical functions performed by channel members include physical transportation, storing, and sorting functions . Finally, channel members may perform facilitating functions , such as researching and financing. Marketing channels for consumer and business-to-business products vary in degree of complexity.
A traditional marketing channel includes a manufacturer that makes products, distributor that carries them to market and retailers that buy and hold inventory for consumers to purchase. Transportation. The distribution process is marked by transportation. Distribution Centers. Inventory. Supply Chain Management.
While a distribution channel may seem endless at times, there are three main types of channels, all of which include the combination of a producer, wholesaler, retailer, and end consumer. The first channel is the longest because it includes all four: producer, wholesaler, retailer, and consumer.
There are basically 4 types of marketing channels : direct selling; selling through intermediaries; dual distribution ; and reverse channels .
The channel management process contains five steps. Analyze the Consumer. We begin the process of channel management by answering two questions. Establish the Channel Objectives . Specify Distribution Tasks. Evaluate and Select Among Channel Alternatives. Evaluating Channel Member Performance.
How to Motivate a Channel Partner Step #1. Understand the Relationship. Step #2: Limit the numbers. It’s a big mistake to recruit too many channel partners . Step #3: Create joint ventures. Step #4: Get team consensus. Step #5: Target your markets. Step #6: Recruit a top manager. Step #7: Train, train, train. Step #8: Support, support, support.
Functions of Distribution Channels Distribution channels provide time, place, and ownership utility. They make the product available when, where, and in which quantities the customer wants.
Examples of marketing channels include: Wholesalers. Direct-to-distributors. Internet direct. Catalogue direct. Sales team. Value-added reseller. Consultant. Retail sales agent.
A channel performs three important functions: transactional, logistical, and facilitating. Service marketers also face the problem of delivering their product in the form and at the place and time their customer demands.
A channel strategy , according to TechTarget, “is a vendor’s plan for moving a product or a service through the chain of commerce to the end customer.”
What are the four steps to designing marketing channels in their correct order? Analyzing consumer needs, setting channel objectives , identifying major channel alternatives, and evaluating the alternatives.
At the strategic level, there are three broad approaches to distribution , namely mass, selective and exclusive distribution . The number and type of intermediaries selected largely depends on the strategic approach. The overall distribution channel should add value to the consumer.
A channel of distribution begins with a producer and ends with an ultimate consumer or industrial user. A producer makes or provides goods and services.