Marketing Management A South Asian Perspective

Chapter 14: Designing and Managing Integrated Marketing Channels

What work do marketing channels perform?

why would a producer

delegate some of the selling job to intermediaries, giving up control over how and to whom products are sold ?

Because intermediaries can make good widely available and accessible to target market, usually offering the firm more effectiveness and efficiency than it can achieve on its own

Many producers lack the financial resources and expertise to sell directly on their own. It is easier to work with intermediaries.

Channel functions and flows

A marketing channel performs the work of moving goods from producers to consumers. It overcomes the time, place and possession gaps that separate goods & services from those who want them to those who need them.

Gather information about potential and current customers ,and other actors in the marketing environment

Develop and disseminate persuasive communications to stimulate purchasing

Negotiate and reach agreements on prices and other terms so that transfer of ownership can be effective

Place orders with manufacturers.

Acquire the funds to finance inventories at different levels in the marketing channel

Assume risk connected with carrying out channel work

Provide for successive storage and movement of physical products

Provide for buyers’ payment of their bills and other financial institutions.

Oversee actual transfer of ownership from one organization or person to another.

Channel member functions

A manufacturermight require three channels

Sales channel

Delivery channel

Service channel

Channel Levels

Zero-level channel

(door to door, telemarketing)

One-level channel

Two-level channel

Three- level channel

thank you

Priti VermaLSR