A marketing channel consists of the people, organizations, and activities necessary to transfer the ownership of goods from the point of production to the point of consumption. It is the way products get to the end-user, the consumer; and is also known as a distribution channel. A marketing channel is a useful tool for management, and is crucial to creating an effective and well-planned marketing strategy.
Another less known form of the marketing channel is the Dual Distribution channel. This channel is a less traditional form that allows the manufacturer or wholesaler to reach the end-user by using more than one distribution channel. The producer can simultaneously reach the consumer through a direct market, such as a website, or sell to another company or retailer that will reach the consumer through another channel, i.e., a store. An example of this type of channel would be franchising.
The role of marketing channels in marketing strategies
Links producers to buyers.
Influences the firm's pricing strategy.
Affecting product strategy through branding, policies, willingness to stock.
Customizes profits, installs, maintains, offers credit, etc.
There are four main types of marketing channels.
The producer sells the goods or provides the service directly to the consumer with no involvement with a middle man such as an intermediary, a wholesaler, a retailer, an agent, or a reseller. The consumer goes directly to the producer to buy the product without going through any other channel. This type of marketing is most beneficial to farmers who can set the prices of their products without having to go through the Canadian Federation of Agriculture. Typically, goods that are consumed by a smaller segment of the market have influence over producers and, therefore, goods that are produced in response to the orders of a few consumers are taken into account. Normally goods and services from this channel are not utilized by large market segments. Moreover, the price of the goods may be subject to significant fluctuations.
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Le commerce de détail est le maillon final de la chaîne de distribution. Il se distingue ainsi du commerce en gros. L'activité est double : achat des produits auprès d'un fournisseur, d'un producteur ou d'un importateur, soit directement ou par l'intermédiaire d'un semi-grossiste ; revente de la marchandise à l'unité ou par petite quantité à un client dans un magasin, une boutique ou par correspondance à l'aide d'un catalogue ou d'un site Internet.
Many manufacturers have started to use virtual stores as a direct distribution channel in addition to their existing indirect retail channels. These companies must now decide how to integrate these channels. The alternatives are to operate dedicated distri ...
2006
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In this paper, we analyze the emerging retail practice of carrying a combined product assortment consisting of both regular "standard" products and more fashionable and short-lived "special" products. The purpose of this practice is to increase store traff ...