MODULE 14

• 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.
• Marketing Channel: It is the way products get to the end-user, the consumer; and is also known as a distribution channel.
• 4 Types of Intermediaries:

  1. Wholesaler
  2. Distributor
  3. Retailers
  4. Agents / Brokers
• Transactional functions involve the buying, selling, and risk-bearing that accompany the movement of products along the marketing channel.
• Logistical functions, involve handling, packing, inventorying, transporting, warehousing, and ensuring the security of products as they make their way to the customer.
• Facilitating functions involve activities such as financing and sharing information with members of the marketing channel.
• How Intermediaries Add Value to Customers?

  • Providing Needed Information about Products and Services.
  • Adjusting the Discrepancy for Quantity
  • Adjusting the Discrepancy for Assortment
  • Providing Credit to Customers
• Direct Channel: From Producer to Consumer
• Indirect Channels: From Producer to Intermediary to Consumer
• 3 Factors Influencing Channel Choice

  1. Target Market Coverage
  2. Fulfillment of Buyer Requirements
  3. Product-Related Factors
• Supply Chain Management is the process of managing all the members

  and activities from the procurement and transformation of raw materials into finished goods through their distribution to targeted consumers.
• 5 Functions of Supply Chain Management

  1. Purchasing
  2. Operations
  3. Logistics
  4. Resource Management
  5. Information Workflow
• Logistics - It is the process of planning, implementing, and controlling the efficient and effective movement and storage of goods, services, and information from the point of origin to the point of consumption.
• 3 Logistics Functions

  1. Warehousing
  2. Inventory Management
  3. Third-Party Logistics Providers
• Wholesalers are similar to distributors in that they take ownership of products.
• Agent or broker is someone who acts as an extension to the manufacturer.
• Distributor takes ownership of the product and tends to align itself closely with a manufacturer.
• Retailers also take ownership of the product, and their sole

  focus is on reaching the end user or customer directly.
• Purchasing is the process of buying materials needed to manufacture products.
• Operations is everything a company does on a day-to-day basis to run a company.
• Logistics is a function that involves the coordination of all supply chain activities, such as warehousing, inventory management, and transportation.
• Resource management is the planning, organizing, and controlling of resources.
• Information workflow is a supply chain management function that relates to what and how information moves between members of the supply chain.
• Target market coverage is defined as having the resources and capabilities to reach and serve consumers in a company’s target market.
• Intensive distribution is a strategy that entails distributing a company’s market offering through all possible intermediaries.
• Selective distribution is a strategy that includes choosing more than one, but fewer than all possible intermediaries to distribute a company’s market offering.
• Product-related factors include things like unit value, perishability, and the bulk and weight of a product.