Tuesday, January 19, 2010

Roles of marketing channel in marketing strategy:

• Links producers to buyers.
• Performs sales, advertising and promotion.
• Influences the firm's pricing strategy.
• Affecting product strategy through branding, policies, willingness to stock and customizes profits, install, maintain, offer credit, etc.
An example of this is Apple orchard: Apple orchard >Transport > Processing factory > Packaging > > Final product to be sold > Apple pie eaten
An alternative term is distribution channel. It is a 'path' or 'pipeline' through which goods and services flow in one direction (from vendor to the consumer), and the payments generated by them flow in the opposite direction (from consumer to the vendor). A marketing channel can be as short as being direct from the vendor to the consumer or may include several inter-connected (usually independent but mutually dependent) intermediaries such as wholesalers, distributors, agents, retailers. Each intermediary receives the item at one pricing point and moves it to the next higher pricing point until it reaches the final buyer.