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MARKETING MANAGEMENT - Structure and Design of Marketing Channels

consumer and industrial markets - Structure and Design of Marketing Channels

   Posted On :  19.06.2018 12:18 am

When it comes for Business-to-Business operations, the channels differ from the consumer markets, in this structure, firms predominantly may use their existing sales force to sell the products to the customers, they may even use industrial distributors to take their products to the industrial customers.

Example of Consumer Markets




When it comes for Business-to-Business operations, the channels differ from the consumer markets, in this structure, firms predominantly may use their existing sales force to sell the products to the customers, they may even use industrial distributors to take their products to the industrial customers. Exhibit 4.8 details the Business-to-Business model of channel structure

B2B Marketing Channels




Mark Andy is one of the big names in the printing machines industry. In India Mark Andy supplies its printing machines to the industrial customers through Heidelberg, an industrial distributor. It also has its own representatives who pitch in when the customer needs information. In case of Industrial Channel, the zero-level, one-level and two-level are the most commonly used method. When it comes for Business-to-Business channels agents become the integral point of the whole process, since the characteristic of the business-to-business market is oligopolistic and are huge buyers.
 
In this digital economy, a shift has started in the channels on either side of the markets i.e. in both the consumer marketing channels and the business-to-business market channels. The web has created a platform whereby organizations can now directly communicate with the customers, as a result of which many of the channels are being disintermediated. This disintermediation does not necessarily mean that they completely eliminate the intermediaries, but rather when it comes to shipping the products it may outsource some of the distribution functions like the storage, transportation from third party firms.
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