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Objectives
1. Define Distribution/ Marketing Channel
2. Enumerate the types of marketing channels and
functions of Marketing Channels; and explain
each
3. Discuss why a business use intermediaries
4. Illustrate the factors that influence Channel
Selection and the Distribution Strategies used by
Firms
5. Reflect on this: “Why is the producer willing to
delegate some selling jobs to intermediaries
Meaning of Marketing Channel
 A marketing channel is a set of practices or activities
necessary to transfer the ownership of goods, and to move
goods, from the point of production to the point
of consumption
 It consists of all the institutions and all
the marketing activities in the marketing process.
 It is a useful tool for management. A link between
manufacturers and customers
 Accomplishes all the tasks necessary to effect a sale and
deliver products to the customer
 The tasks include making contact with potential buyer,
negotiating, contracting, and transferring the title to storage
of goods
Roles of Marketing Channels
 Links producers to buyers.
 Performs sales, advertising and promotion.
 Influences the firm's pricing strategy.
 Affecting product strategy through branding,
policies, willingness to stock.
 Customizes profits, install, maintain, offer credit, etc
Factors that Influences Channel Selection
 The nature of the product
 The nature of the market
 The nature of the company Market
Single
Prop.
Product
Partnership
or
Corporation
Nature of the Company
Distribution Strategies Used by Firms
-Improve customer service (Differentiation of Products,
Fast delivery)
-Reduce distribution cost (Economic Order quantity and
just-in time Inventory)
-Create time and place utilities(Year Round Consumption
VS Seasonal Production/Consumption- Storage)
-stabilize prices (Supply and Demand)
-influence channel decisions (proper selection of right
channel)
-control shipping costs Efective (Physical Distribution)
LET US REFLECT
Reflect on this: “Why
is the producer
willing to delegate
some selling jobs to
intermediaries
ASSIGNMENT
 Be ready for a Unit Test
 Read About Retailing and Wholesaling
Unit Test
Test I-Enumerate the following:
 1-5- key words on meaning of marketing channels
 6-10- roles of marketing channels
 Test II-Answer at least in three sentences bearing a
complete reasoning:
“Why is the producer willing to delegate some
selling jobs to intermediaries”

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Marketing Channels

  • 1.
  • 2. Objectives 1. Define Distribution/ Marketing Channel 2. Enumerate the types of marketing channels and functions of Marketing Channels; and explain each 3. Discuss why a business use intermediaries 4. Illustrate the factors that influence Channel Selection and the Distribution Strategies used by Firms 5. Reflect on this: “Why is the producer willing to delegate some selling jobs to intermediaries
  • 3.
  • 4. Meaning of Marketing Channel  A marketing channel is a set of practices or activities necessary to transfer the ownership of goods, and to move goods, from the point of production to the point of consumption  It consists of all the institutions and all the marketing activities in the marketing process.  It is a useful tool for management. A link between manufacturers and customers  Accomplishes all the tasks necessary to effect a sale and deliver products to the customer  The tasks include making contact with potential buyer, negotiating, contracting, and transferring the title to storage of goods
  • 5.
  • 6. Roles of Marketing Channels  Links producers to buyers.  Performs sales, advertising and promotion.  Influences the firm's pricing strategy.  Affecting product strategy through branding, policies, willingness to stock.  Customizes profits, install, maintain, offer credit, etc
  • 7. Factors that Influences Channel Selection  The nature of the product  The nature of the market  The nature of the company Market Single Prop. Product Partnership or Corporation Nature of the Company
  • 8. Distribution Strategies Used by Firms -Improve customer service (Differentiation of Products, Fast delivery) -Reduce distribution cost (Economic Order quantity and just-in time Inventory) -Create time and place utilities(Year Round Consumption VS Seasonal Production/Consumption- Storage) -stabilize prices (Supply and Demand) -influence channel decisions (proper selection of right channel) -control shipping costs Efective (Physical Distribution)
  • 9. LET US REFLECT Reflect on this: “Why is the producer willing to delegate some selling jobs to intermediaries
  • 10. ASSIGNMENT  Be ready for a Unit Test  Read About Retailing and Wholesaling
  • 11. Unit Test Test I-Enumerate the following:  1-5- key words on meaning of marketing channels  6-10- roles of marketing channels  Test II-Answer at least in three sentences bearing a complete reasoning: “Why is the producer willing to delegate some selling jobs to intermediaries”