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Marketing Channels Explained

Marketing channels are the routes by which products and services are made available to consumers and businesses. They involve interdependent organizations that transfer physical possession and ownership of products. Channel structure concerns the selected route to move a product through intermediaries, while channel design involves developing or modifying existing channels. Marketing channels are part of the place element in the marketing mix, describing how products reach target customers through either intermediaries or direct management. There are five types of flows in marketing channels: product, negotiation, ownership, information, and promotion flows, which involve the movement of goods, exchange processes, title, information, and persuasive communication respectively.

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Samuel Argote
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167 views2 pages

Marketing Channels Explained

Marketing channels are the routes by which products and services are made available to consumers and businesses. They involve interdependent organizations that transfer physical possession and ownership of products. Channel structure concerns the selected route to move a product through intermediaries, while channel design involves developing or modifying existing channels. Marketing channels are part of the place element in the marketing mix, describing how products reach target customers through either intermediaries or direct management. There are five types of flows in marketing channels: product, negotiation, ownership, information, and promotion flows, which involve the movement of goods, exchange processes, title, information, and persuasive communication respectively.

Uploaded by

Samuel Argote
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Argotte, Samuel F.

Define Marketing Channel

Marketing Channels Definition Marketing Channels are the routes or ways to market product
and services that consumers and business buyers purchase. Marketing channels can also be set
of interdependent organizations involved in the process of making a product or service available
for the use of consumption.

Differentiate of channel structure to channel design

Channel structure concerns the route selected to move a product through different
intermediaries. Channel Design decisions involving either the development of new marketing
channels where none had previously existed or the modification of existing channels.

How marketing channel relate strategic variable in the marketing mix

Marketing Channels are included in the analysis of place within the "4-P" business marketing
mix. The channels of distribution describe how products are delivered to target customers.
Manufacturers can either use intermediaries to market and deliver products or independently
manage the steps in the distribution process. And to seek out potential target markets and
develop appropriate and coordinated 4Ps strategies to serve those markets in competitive and
dynamic environment.

Types of marketing channel flows

1. Product flow - refers to the movement of the physical product from the manufacturer
through all the parties who take physical possession of the product until it reaches the ultimate
consumer.

2. Negotiation flow - encompasses the institutions that are associated with the actual exchange
processes.

3. Ownership flow - the movement of title through the channel.

4. Information flow - identifies the individuals who participate in the flow of information either
up or down the channel. Finally, the promotion flow refers to the flow of persuasive
communication in the form of advertising, personal selling, sales promotion, and public
relations.

5. Promotion flow - flow of persuasive communication in the form of advertising, personal


selling, sales promotion, and public relations.
Argotte, Samuel F.

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