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Marketing channel
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- 4. Definition The agriculturalcommodities move from the farmers to consumers over time and space through various market intermediaries. The chain of intermediaries through which the various farm commodities pass between producers and consumer. An array of exchange relationships that create customer value in the acquisition, consumption, and disposition of products and services.
- 5. Importance Information Provider Middlemen provide information about the market to the manufacturer. Entry of a new competitor or a new brand and changes in customer preferences
- 6. Price Stability Anotherfunction a middleman Absorb an increase in the price of the products and continue to charge the customer the same old price. Because of the intra-middlemen competition. The middleman also maintains price stability by keeping his overheads low. Stability Price Price
- 7. Bitcoin Digital currency Transaction between peer to peer Takes place between producer and customer.
- 8. Promotion Promoting theproducts in his territory is another function that middlemen perform. Title for Goods Most middlemen take the title to the goods, services and trade in their own name. This helps in diffusing the risks between the manufacturer and middlemen.
- 9. Financing Middlemen financemanufacturers’ operation by providing the necessary working capital in the form of advance payments for goods and services.
- 10. Help in ProductionFunction The producer can concentrate on the production function leaving the marketing problem to middlemen who specialize in the profession. Their services can best utilized for selling the product. The finance, can profitably be used in production where the rate of return would be greater.
- 11. Matching Demand andSupply The chief function of intermediaries is to assemble the goods from many surplus producers in such a manner demand and supply can balanced. Demand Supply
- 12. Pricing Suggestions fromthe middlemen who are very close to the ultimate users and know what they can pay for the product. Different for different markets depending upon the channel of distribution.
- 13. Standardizing Transactions Consumersdo not need to negotiate with the sellers on any aspect, whether it is price, quantity, method of payment or location of the product. Matching Buyers and Sellers Normally, most sellers do not know where they can reach potential buyers and similarly, buyers do not know where they can reach potential sellers.
- 14. Functions Bridge thegap between production and consumption. A close study of the market is extremely essential. A sound marketing plan depends upon thorough market study. Promoting the product and awareness regarding products and other offers to the consumers. Creating contacts. Understanding the customer's needs and adjusting the offer accordingly. Negotiate price and other offers related to the product as per the customer demand. Storage and distribution of goods
- 15. Elements Marketing channelsto succeed in a competitive marketplace, independent marketing organisations must pool individual resources to achieve collective goals through a connected system. Pooled Resources A marketing channel operates as a team, sharing resources and risks to move products and resources from their point of origin to their point of final consumption. Product Resource Resource Resource
- 16. Collective Goals Asense of shared purpose helps unite organisations within marketing channels. particularly when the organisations sense a chance to win a critical competition for market share. The purpose shared by members of an organisation is reflected in the organisation’s mission statement.
- 17. Mission statement anorganisation’s goals, the procedures to be employed in pursuit of those goals, and how the organisation intends to satisfy the needs of its internal and external customers.
- 18. Connected System Organizationscannot exist without markets. All business competition emerges within marketing channels, and the success or failure is decided over there. Channel members regulate the flows of goods and services in the marketplace. The degree to which product flows has never been more significant.
- 19. Flexibility Marketing channelsmust be flexible systems in order to be successful. The organisations and persons involved in channel flows must be ‘sufficiently connected to permit the system to operate as a whole, but the bond they share must be loose enough to allow for components to be replaced or added’.
- 20. Types of marketingchannels Direct Selling Selling of products directly to consumers away from a fixed retail location. Direct selling is different from direct marketing in that it is about individual sales agents reaching and dealing directly with clients. Direct marketing is about business organizations seeking a relationship with their customers without going through an agent.
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- 22. Dual Distribution More thanone channel simultaneously to reach the end user.
- 23. Reverse Channels The backwardflow or process by which used goods, that will be used in the recycling and repurposing of those goods as raw materials, come from the consumer.
- 24. Levels of marketingchannel Each layer of distribution intermediaries that performs some work in bringing the product to its final consumer is a channel level.
- 25. Zero Level Channel A zero level channel, commonly known as direct marketing channel has no intermediary levels. In this channel framework manufacturer sells merchandise directly to customers. One Level Channel one selling intermediary. In consumer markets, this is usually a retailer. The consumer electrical goods market in the United Kingdom is typical of this arrangement whereby producers such as Sony, Panasonic, Canon etc. Two Level Channel: Two intermediary levels – a wholesaler and a retailer. Three Level Channel: A third level channel, as the name implies, encompasses three intermediary levels – a wholesaler, a retailer and a jobber.
- 26. Flows in MarketingChannels
- 27. Product flow Physicalmovement of the product from point of production to final consumers. Negotiation flow The interplay of the buying and selling functions associated with the transfer of title (right of ownership) to products. Ownership flow The movement of the title to the product as it is passed along from the manufacturer to final consumers. Information flow the flow of information from the manufacturer to consumers are two-directional. Promotion flow The promotion flow refers to the flow of persuasive communication in the form of advertising, personal selling, sales promotion, and publicity.
- 28. Marketing channel members Resellers Generally purchase or take ownership of products from the marketing company with the intention of selling to others. Retailers – Organizations that sell products directly to final consumers. Wholesalers –purchase products from suppliers, and in turn sell these to other resellers, such as retailers or other wholesalers. Industrial Distributors –selling products obtained from industrial suppliers.
- 29. Specialty Service Firms Provide additional services to help with the exchange of products but generally do not purchase the product (i.e., do not take ownership of the product): Agents and Brokers – bring suppliers and buyers together in exchange for a fee. Distribution Service Firms – transportation, storage, and order processing. Others – insurance companies and firms offering transportation routing assistance.
- 30. Benefits offered bychannel members Cost Savings in Specialization – Members of the distribution channel are specialists in what they do and can often perform tasks better and at lower cost than companies who do not have distribution experience. Reduce Exchange Time - faster product delivery being experienced in what they do. Provide Information –provide information that can help improve the product, how products are selling.
- 31. Issues in marketingchannels
- 32. Product Issues Thenature of the product requires special handling such as flowers. Promotion Issues Promotional activities needed to sell the product to customers. For products needing extensive salesperson-to-customer contact (e.g., automobile purchases)
- 33. Pricing Issues Thedesired price at which a marketer seeks to sell their product can impact how they choose to distribute. If too many channel members are involved the eventual selling price may be too high to meet sales targets in which case the marketer may explore other distribution options. Target Market Issues A distribution system is only effective if customers can obtain the product. Setting up a approach that reaches customers in the most effective way possible.
- 34. Marketing channel forbanana Processor Hawker
- 35. There are4 things that you can’t recover The stone after shot The word after pronounced The occasion after lost The time after gone