GURU JAMBHESHWAR UNIVERSITY OF SCIENCE AND TECHNOLOGY
SESSION 2020-2022
HARYANA SCHOOL OF BUSINESS
Roles of marketing channel
PRESENTING BY:
SEEMA RANI
200101010070
CONTENT
1. WHAT ARE MARKETING CHANNEL?
2. TYPES OF MARKETING CHANNEL
3. DIRECT MARKETING
4. INDIRECT MARKETING
5. DUAL MARKETING
6. REVERSE MARKETNG CHANNEL
7. IMPORTANCE OF MARKETING CHANNEL
8. ROLES OF MARKETING CHANNEL
Marketing
All those activities a company undertakes to promote the
buying and selling of a product or service. It includes advertising,
selling, pricing, promotion, distribution and after sales services.
Channel
To make something move along a particular path or route.
WHAT ARE MARKETING
CHANNEL?
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.
A marking channel consists of individuals and firms involved in the process of
making a product or service available for consumption and industrial users.
TYPES OF MARKETING CHANNEL
Direct marketing channel
Zero level marketing channel
Indirect marketing channel
One level channel
Two level channel
Three level channel
Dual marketing channel
Reverse marketing channel
Direct marketing channel
• Company sale the product directly to the customer
• No role of intermediaries
• Selling through internet
• If products are technically complex, this system is preferred
• Bakers, jewellers, direct selling-Amway, chain stores- bata, nike etc
Indirect marketing channel
•Goods may move through asset of intermediaries.
•The intermediary has a far better reach than the company.
•The cost pf operations of an intermediary like a wholesaler/retailer is shared with many
businesses.
• Automobile sells their cars through authorized dealer, cloth, grocery.
Dual Distribution
Movement of products through more than one channel to reach the firm’s target market.
Used to maximize the firm’s coverage in the market place or to increase the cost-effectiveness of
the firm’s marketing effort.
For example
Wholesaler is selling goods to retailer and directly to the customer also.
Reverse Channels
Channels designed to return goods to their producers.
1) Reuse products or containers(such as refillable chemical-carrying drums);
2) Refurbish products for resale(such as circuit boards or computer)
3) To recycle products(such as paper)
Importance of marketing channel
Decisions about the marketing channel are among the most critical management decisions.
They just not serve marketing, they make market .
Channels chosen affects all other marketing decisions.
Firm’s sale depends upon training and motivation of dealers.
Channel Behavior and Organization
For example,
A Toyota car dealer depends on the Motor company to design car that meet customer needs.
In turn, Toyota depends on the dealer to attract customers, persuade them to buy Toyota cars
and service cars after sale.
The Toyota company also depends on other dealers to provide good sales and service that will
uphold the reputation of Toyota and its dealer body.
In fact, the success of individual Toyota dealers depends on how well the entire Toyota
distribution channel compete with the channels of other automobile manufacturers.
Roles of
Marketing Channel
Information provider
Middlemen have a role in providing information about the market to the
manufacturer. Developments like change in customer demography, psychography,
media habits and the entry of a new competitor or a new brand and changes in
customer preferences are some of the information that all manufacturers want. Since
these middlemen are present in the market place and close to the customer they can
provide this information at no additional cost.
Price Stability
Maintaining price stability in the market is another function a middlemen performs.
Many a time the middlemen absorb an increase in the price of the products and
continue to charge the customer the same old price. This is because of the intra-
middlemen competition. The middlemen also maintains price stability by keeping his
overheads low.
Title
Most middlemen take the title to the goods, services and trade in their own name. This helps in
diffusing the risks between the manufacturer and middlemen. This also enables middlemen to
be in physical possession of the goods, which in turn enables them to meet customer demand at
very moment it arises.
Help in Production Function
The producer can concentrate on the production function leaving the marketing problem to
middlemen who specialize in the profession. Their services can best utilized for selling the
product. The finance, required for organizing marketing can profitably be used in production
where the rate of return would be greater.
Promotion
Promoting the product/s in his territory function that middlemen perform. Many of them design
their own sales incentive programs, aimed at building customers traffic at the other outlets.
Financing
Middlemen finance manufactures operation by providing the necessary working capital in the from of
advance payments for goods and services. The payment is in advance even though the manufacture may
extend credit, because it has to be made even before the products are bought, consumed paid for by the
ultimate consumer.
Matching Demand and Supply
The chief function of intermediaries is to assemble the goods from many producers in such a
manner that a customer can affect purchases with ease. The goal of marketing is the matching
of segments of supply and demand.
Pricing
In pricing a product, the producer should invite the suggestions from the middlemen who are
very close to the ultimate users and know what they can pay for the product. Pricing may be
different for different markets or products depending upon the channel of distribution.
Standardizing Transactions
Standardizing transactions is another function of marketing channels. Taking the example of the milk
delivery system, the distribution is standardized throughout the marketing channel so that consumers do
not need to negotiate with the sellers on any aspect, whether it is price, quantity, method of payment or
location of the product.
Matching buyers and Sellers
The most crucial activity of the marketing channel members is to match the needs of buyers and sellers.
Normally, most sellers do not know where they can reach potential sellers. Form this perspective, the
role of the marketing channel to match the buyers’ and sellers needs becomes very vital. For example, a
painter of modern art may not know where he can reach his potential customers, but an art dealers would
surely know.
THANK YOU
