MARKETING MANAGEMENT - Introduction to Marketing Mix
Place (Channel Management) - Introduction to Marketing Mix
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The marketing channel is the set of mechanisms or network via which a firm ‘goes to market’ or is ‘in touch’ with its customers for a variety of tasks ranging from demand generation to physical delivery of the goods.
Place
(Channel Management)
The marketing channel is the set of mechanisms or network via which a firm ‘goes to market’ or is ‘in touch’ with its customers for a variety of tasks ranging from demand generation to physical delivery of the goods. The customer’s requirements for effective support determine the functions which the members of the channel must collectively provide.
Eight generic channel functions can be identified, viz.,
1. Product information
2. Product customization
3. Product quality assurance
4. Lot size (e.g. the ability to buy in small quantities)
5. Product assortment (refers to breadth, length and width of product lines)
6. Availability
7. After-sale service
8. Logistics
9.
Marketers develop channels and formulate distribution plans to ensure that consumers find their products available in the proper quantities at the right times and places. Distribution decisions involve transportation, warehousing, inventory control, order processing and selection of marketing channels.
Marketing channels are made up of institutions such as wholesalers and retailers – all those involved in a product’s movement from producer to final consumer. The two major decisions in channels are: (1) Channel design – which involves both a length and breadth issue, and (2) Channel management – what policies and procedures will be used to have the necessary functions performed by various parties
An important point with respect to channel design is that while there are options about whether a particular institution (e.g. a distributor) is included in the channel or not, the setting implicates specific tasks which need to be accomplished by someone in the channel. One can eliminate a layer in the chain but not the tasks that layer performed.
The marketing channel is the set of mechanisms or network via which a firm ‘goes to market’ or is ‘in touch’ with its customers for a variety of tasks ranging from demand generation to physical delivery of the goods. The customer’s requirements for effective support determine the functions which the members of the channel must collectively provide.
Eight generic channel functions can be identified, viz.,
1. Product information
2. Product customization
3. Product quality assurance
4. Lot size (e.g. the ability to buy in small quantities)
5. Product assortment (refers to breadth, length and width of product lines)
6. Availability
7. After-sale service
8. Logistics
9.
Marketers develop channels and formulate distribution plans to ensure that consumers find their products available in the proper quantities at the right times and places. Distribution decisions involve transportation, warehousing, inventory control, order processing and selection of marketing channels.
Marketing channels are made up of institutions such as wholesalers and retailers – all those involved in a product’s movement from producer to final consumer. The two major decisions in channels are: (1) Channel design – which involves both a length and breadth issue, and (2) Channel management – what policies and procedures will be used to have the necessary functions performed by various parties
An important point with respect to channel design is that while there are options about whether a particular institution (e.g. a distributor) is included in the channel or not, the setting implicates specific tasks which need to be accomplished by someone in the channel. One can eliminate a layer in the chain but not the tasks that layer performed.
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