Objectives

1. Define Distribution/ Marketing Channel2. Enumerate the types of marketing

channels and functions of Marketing Channels; and explain each

3. Discuss why a business use intermediaries

4. Illustrate the factors that influence Channel Selection and the Distribution Strategies used by Firms

5. Reflect on this: “Why is the producer willing to delegate some selling jobs to intermediaries

Marketing Channel in the Internet

Meaning of Marketing Channel A marketing channel is 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

It consists of all the institutions and all the marketing activities in the marketing process.

It is a useful tool for management. A link between manufacturers and customers

Accomplishes all the tasks necessary to effect a sale and deliver products to the customer

The tasks include making contact with potential buyer, negotiating, contracting, and transferring the title to storage of goods

Roles of Marketing Channels

Links producers to buyers. Performs sales, advertising and

promotion. Influences the firm's pricing strategy. Affecting product strategy through

branding, policies, willingness to stock. Customizes profits, install, maintain,

offer credit, etc

Factors that Influences Channel Selection

The nature of the product The nature of the market The nature of the company

Market

Single Prop.

Product

Partnership or

Corporation

Nature of the Company

Distribution Strategies Used by Firms

-Improve customer service (Differentiation of Products,

Fast delivery)-Reduce distribution cost (Economic Order quantity and

just-in time Inventory)-Create time and place utilities(Year Round

Consumption VS Seasonal Production/Consumption- Storage)

-stabilize prices (Supply and Demand)-influence channel decisions (proper selection of right

channel)-control shipping costs Efective (Physical Distribution)

LET US REFLECT

Reflect on this: “Why is the producer willing to delegate some selling jobs to intermediaries

ASSIGNMENT

Be ready for a Unit Test Read About Retailing and Wholesaling

Unit Test

Test I-Enumerate the following: 1-5- key words on meaning of marketing

channels 6-10- roles of marketing channels Test II-Answer at least in three sentences

bearing a complete reasoning:

“Why is the producer willing to delegate some selling jobs to intermediaries”