Marketing Channel Factors and Designs By: James Jenkins

Introduction Marketing Channel: individuals and firms involved in making a product or service available for consumption by consumers or industrial users Consists of Producers, agents, wholesalers, retailers, and consumers

Channel Choice and Management Factors Choices between different marketing channels depend on factors involved Environmental- Changing lifestyles, growing technology, and regulatory factors Tupperware Lifting the ban of chewing gum in Singapore

Strict laws lighten up Chewing Gum banned in 1992 after littering problem Ban was finally partially lifted in 2004 for prescriptions and smokers Not available in convenience stores ID required

Factors cont. Consumer- choosing best intermediary to reach target market Answering questions: Who? Where? When? How? What? Product- distribution is determined by value of products Sophisticated products sold directly Low involvement products sold indirectly

Factors cont. Company-based on the firm’s financial, human, or technological capabilities Applies to intermediaries as well

Channel Designs With many alternatives and factors considered, firms have three major points to be recognized: Coverage of target market Satisfying Buyer Requirements Profitability

Designs cont. Target Market Coverage- using density of stores for distribution of product Intensive- placement of product in as many stores possible Exclusive- distribution into only one outlet that carries item Selective- firm selects a few retail outlets to provide product

Design cont. Satisfying Buyer Requirements- fulfilling needs that buyers may have Includes information, convenience, variety, and attendant services Maximizing Profit- considering distribution, advertising, and expenses to choose best channel

Conclusion Marketing channels need to be well coordinated and planned so that the firms maximize their productivity This also is necessary to keep the consumers satisfied

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