Marketing
channels are the routes a product takes to get into consumers hands. Or as our textbook states, it consists of
individuals and firms involved in the process of making a product or service
available for use. These channels can be
seen through different methods of intermediaries. There are six types of marketing channels/
intermediaries and they are as follows:
Middleman- The middleman is the intermediary
between the manufacturer and the end–user of a certain product.
Agent or Broker- These individuals are intermediaries
with legal authority to act on behalf of the manufacturer but do not take the
ownership title to products. An example
of these can include real-estate agents.
Wholesaler- Wholesalers are intermediaries who sell
to other intermediaries. An example of a
wholesaler would be Costco
Retailer- Is an intermediary who sells to
consumers. Retailers can include JC
Penney and Sears.
Distributor- This term can be used to define
wholesalers but is also usually used to generally describe intermediaries who
perform the actions of selling, maintaining inventories, and extending credit.
Dealer- A dealer can mean the same as a
distributor, retailer, wholesaler, and so fourth. We generally describe them with items such as
automobiles, however they are also retailers.
Marketing
channels consist of direct and indirect channels. Direct channels are where the producers deal
directly with consumers. These can
consist of insurance companies who sell directly to consumers. Indirect channels are where intermediaries
get involved between the producer and consumer.
An example of this would be a car dealership as they act as retailers
for certain automobiles. Another form of
marketing channels is an electronic marketing channel. These are channels that make products and
services available electronically. Sites
such as Amazon and Orbitz are electronic marketing channels, Amazon selling
books and Orbitz being a reservation service.
A
company can also use Multichannel
marketing which is the blending of different communication and delivery
channels that are mutually reinforcing in attracting, retaining, and building
relationships with consumers who shop and buy in traditional intermediaries and
online. This is not to be confused with
Dual Distribution and arrangement
whereby a firm reaches different buyers by employing two or more different
types of channels for the same basic product.
Marketing
channels are the only ways products can get into the consumers hands. Products must be sold and whether they go
directly to consumers or through intermediaries, marketing channels are how
those products or services reach their destination. There is also lot of risk involved especially
in indirect marketing channels. This is
because not only do the producers risk the product not selling well but so do
the retailers and wholesalers. They
purchased the products from the producers; if those products don’t sell they
too will be out of profit. However even
though it is risky it allows certain products to sell better from multiple
places. If a product is sold through
different retailers and wholesalers it gives the consumers more way to buy the products,
which can ultimately lead to higher profits especially for newer goods.
All definitions were found in the Kerin, Hartley, Rudelius, Marketing textbook
All definitions were found in the Kerin, Hartley, Rudelius, Marketing textbook
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