Trinidad, Ernst Robin C.

Activity 7 Principles of Marketing

BSOA 2-1 Prof. Angelou Francisco

1. What is a marketing channel system and value network?

2. How companies integrate channels and manage channel conflict?
3. What are the different types of marketing intermediaries?
4. What are the major trends with marketing intermediaries?

1. A marketing channel systems are set of independent organizations joining in the

process of making a product or service available for the market to use. Value
network on the other hand is a set of connection between organization or
individuals interacting with each other to benefit the entire group.

2. Companies integrate channel on the recent growth of vertical, horizontal, and

multichannel marketing systems. Channel integrations refers to strategies aimed
at combining or uniting customer information and its use to provide a better view
of the customers. Conflict always occurs every time not only in companies, but
in general. So to avoid as much as conflict the company would have, the
company should have a contingency plan if some things didn’t work out the way
it should be. The company should hear or review the opinions of other channels
because that may or may not benefit the company and it’s not nice to let an
opportunity past.

3. There are four types of intermediary: agents, wholesalers, distributors, and

retailers. The agents are the one who usually transacts with the clients.
Wholesalers are the one who buy the product in bulk from manufacturers and
sell them at a higher price to retailers or businesses. Distributors on the other
hand, don’t buy products from the producers. Instead, they speed up the
process between the transaction of the manufacturer and retailers and
businesses. Retailers are the one who sell the product in the stores, shopping
malls, and e-commerce websites like Lazada or Shopee.

4. Some of the major trends with marketing intermediaries are Bookstores that
have coffee shops. People who likes to read books tend to purchase a coffee in
order for them to have a place to read. This kind of strategy works very well,
mostly if it is located near a school. Other example would be gasoline stations
with food stores. People who drives far away usually stops at the gasoline
stations on the highway, if they drove far away they must be hungry. So, it is a
great strategy to put food stores near the gasoline stations because the amount
of the car that passes the road, most of them would stop to eat and rest for a
while after a long drive.