MARKETING CHANNELS & SUPPLY CHAIN MANAGEMENT

What is a marketing channel What is a marketing channel? A set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer.

A company’s channel decisions directly affect every other marketing decision. The company’s pricing depends on its channels. Companies often pay too little attention to their distribution channels, some times with damaging results. Distribution channel decisions often involve long-term commitments to other firms.

Companies can design their distribution channels to make products and services available to customers in different ways. Each layer of marketing intermediaries that performs some work in bringing the product closer to the final buyer is a channel level.

The number of intermediary levels indicates the length of a channel The number of intermediary levels indicates the length of a channel. DIRECT MARKETING CHANNEL: A marketing channel that has no intermediary levels. INDIRECT MARKETING CHANNEL: Channel containing one or more intermediary levels.

CONSUMER MARKETING CHANNELS

BUSINESS MARKETING CHANNELS

CHANNEL CONFLICT: Disagreement among marketing channel members on goals and roles, who should do what and for what rewards. HORIZONTAL CONFLICT: Occurs among firms at the same level of the channel. VERTICAL CONFLICT: Occurs between different levels of the same channel.

Marketing logistics & Supply chain management In todays global market place, selling a product is sometimes easier than getting it to customers. Companies must decide on the best way to store, handle and move their products and services so that they are available to customers in the right time and in the right place. Physical distribution and logistics effectiveness has a major impact on both customers satisfaction and company costs.

Marketing logistics also known a physical distribution involves planning, implementation and controlling the physical flow of goods, services and related information from points of origin to points of consumption to meet customer requirement at a profit. In short it involves getting right product to the right customer in the right place at the right time.

Marketing logistics addresses not only outbound distribution (moving products from factory to resellers and finally to customers) but also inbound distribution (moving broken, unwanted or excess products returned by consumers or resellers). That is it involves entire Supply Chain Management.

SUPPLY CHAIN MANAGEMENT: Managing upstream and down stream value added flows of materials, final goods, and related information among suppliers, the company, resellers and final consumers.

Check your learnings What is a Marketing Channel? What is a Direct Marketing Channel? What is a Indirect Marketing Channel? Explain Channel Conflict? Define Marketing Logistics? Draw the diagram to explain Supply chain management?