Wednesday, January 10, 2018

The nature & importance of marketing channels

Some producers like to sell their goods directly to final users . On the other hand, most producers use intermediaries to bring their products to market.
Always ,  They seek for marketing channel. Marketing channel actually a set of interdependent organizations that works for make a product or service available for use or  consumption  by the consumer or business user.
Marketing decisions are directly affected by a company's channel decisions. They set their pricing based on their nature of working environment with national discount chains, uses high quality, specialty  stores, direct sells or online sells.
It's sales force & communications decisions depend on their ability to persuasion, motivation, training & support channel partners.
Besides, company's develops their new products depends on  how well those products  do the capabilities of its channel members.
Some companies pay little attention to their distribution channels having of damages. In contrast, some companies used imaginative distribution channels system to gain competitive advantage.
For example:- by setting up off airport rental offices  of Rent a car businessman gets competitive advantage. Apple also gets through retail music business  by selling iPod via the internet on iTunes music.
Amazon & Wal-Mart always changed their face of retailing & without Having any physical stores.
Distribution  channel is always a long -term commitments to other firms . For example:- leading companies like Ford, McDonald's, pizza hut, HP can easily Change their advertising , pricing or promotion programs. They can stop their on product & introduce new one for market tastes demand. But after setting distribution channels  through contracts with franchisees, independent  dealers, large retailers  can't  replaced this immediately.  That's why management needs to design  their channels carefully  today's & tomorrow's  as well.

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