Understanding Marketing Channels and Types
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ScribdTranslationsUnderstanding Marketing Channels and Types
Translated by
ScribdTranslationsMARKETING CHANNELS
What are marketing channels?
Marketing or Distribution channels are all those organizations that
involve the process of making a product or service available for use
the consumption of customers, that is to say, they are the existing intermediaries between manufacturers
and the end customers. These channels influence the company's marketing decisions.
among them pricing, sales decisions, and advertising, among others.
DISTRIBUTION CHANNEL OBJECTIVES
Increase the global sales volume of all products.
Defend and promote the good image of the brand established in the market
through fast and efficient delivery.
Reduce the cancellation of orders or merchandise returns due to problems
of its delivery.
TYPES OF DISTRIBUTION CHANNELS.
DIRECT CHANNEL: as its name indicates, this type of channel has the
particularity that the producer of a certain good or service markets to
directly to the end consumer, without the need for intermediaries. The major
part of the services are sold through this channel. In contrast, few are
products marketed through direct distribution channels
INDIRECT CHANNEL: receives this name because between the producer of
good or service and the consumer is presented with an intermediary. The size may vary in
function of the amount of intermediaries that make up the path traversed by the good or
service. From this, two indirect channels can be distinguished:
SHORT CANAL: it is made up of two steps, which is why it has only a
mediator between the producer and the final consumer.
LONG CHANNEL: in contrast to the previous one, the long channel is characterized
due to the presence of a large number of intermediaries, and is often identified as
the vast majority of consumer products.
FUNCTIONS OF DISTRIBUTION CHANNELS.
TRANSPORT: the products from the place of manufacture to the place of consumption.
FRACCIÓNATE: put the manufactured products into portions and conditions that
correspond to the needs of customers and users.
to supplysets ofproducts adapted to consumption or use situations.
STORAGE: every activity that ensures the link between the moment of manufacturing
and the moment of purchase or use.
CONTACT: facilitate the accessibility of a large group of buyers and
scattered.
INFORM: improve understanding of market needs and terms
of competitive exchange.
INTERMEDIARIES
They are the ones responsible for transferring products or services from the producers.
to consumers.
TYPES OF INTERMEDIARIES
DISTRIBUTOR: It is the wholesale intermediary, generally specialized in sales.
of products with which the manufacturer expects support in the area of promotion and sales.
WHOLESALE: It is an intermediary that acts in the distribution channel by purchasing the
products to manufacturers and selling them to retailers (and in some cases to others
wholesalers) but not to final consumers.
RETAILER: it can be a trader or an agent whose business
the main goal is to sell directly to the end consumer.
OTHER TYPES OF DISTRIBUTION CHANNELS
. NON-TRADITIONAL CHANNELS
Although non-traditional channels limit a brand's coverage, they offer it
to the manufacturer that serves a niche a way to gain access to the market and to
gain customer attention without having to establish channel intermediaries.
• MULTIPLE CHANNELS
When a manufacturer selects two or more channels to distribute the same.
product to target markets, that arrangement is known as dual distribution or
multiple distribution.
• REVERSED CHANNELS
When products move in the opposite direction to traditional channels:
from the consumer back to the manufacturer (Repair or recycling).
FACTORS AFFECTING THE DESIGN OF CHANNELS
DISTRIBUTION
• CHARACTERISTICS OF MARKETS: The number of consumers, their
concentration or dispersion and their shopping habits condition the channel to choose
and the mode of distribution.
• PRODUCT CHARACTERISTICS: It is necessary to take into account the level of
prices and size, price and volume in addition to product positioning
which also determines the degree and type of additional services.
• CHARACTERISTICS OF INTERMEDIARIES: the choice of a channel
should start from the study of the characteristics of the distributors, their
availability, efficiency and compatibility with the manufacturer's objectives
provider.
• COMPETITION: the company must analyze the channels used by the competition
since they can create buying habits in consumers.
• CHARACTERISTICS OF THE COMPANY: The personality of the executives,
the objectives pursued by the company, the available resources and capabilities
must be taken into account when analyzing the channel.
• CHARACTERISTICS OF THE ENVIRONMENT: environmental factors, such as the
economic, social, political, legal, or technological conditions affect the
channel decisions.