Marketing Channels And Supply Chain

Q1: What is meant by Marketing Channel?

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Q2: What is meant by Down Stream Chain and
Upstream Chain?
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Q3: Why Supply Chain?
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Place Utility: Availability of a good and/or service

where the consumer wants or needs it.
Time Utility: Availability of a good and/or service when
consumer wants/needs it.
Possession Utility: Possession utility is a term that
explains and possibly measures the satisfaction that
comes from owning a product or enjoying a service.
Q4: How Channel Member added Value?
ANS: The use of intermediaries results from their
greater efficiency in making goods available to target
markets.
 Offers the firm more than it can achieve on its own
through the intermediaries contacts, experience,
specialization, and scale of operation.
 Channel intermediaries offer contacts, experience,
specialization, and economies of scale to
organizations that cannot offer these attributes on
their own.
 Marketing channels allows producers to realize the
benefits that only larger organizations may be able to
support.
 Channel intermediaries offer value in the form of
Information, Promotion, Negotiation, Funding, Risk
taking, Physical possession, Payment options, and
Title
Q5: What are the functions of Marketing Channels?
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Q6: What are the functions of Distribution Channels?
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Q7: What is meant by Channel levels?
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Direct Marketing Channel: The method of selling

directly to the end buyer from the manufacturer with no
middle man or intermediary involved.
Indirect Marketing Channel: A chain of intermediaries
through which a product moves in order to be made available for
purchase by a consumer. An indirect channel of distribution typically
involves a product passing through additional steps as it moves from the
manufacturing business via distributors to wholesalers and then retail
stores.
Q8: What are the Types of Marketing System?
ANS:
Conventional Marketing system: A conventional
marketing system (or channel) is a multiple-
level distribution channel in which channel members
work independently of one another.
Vertical Marketing system: A vertical marketing
system (VMS) is one in which the main members of a
distribution channel—producer, wholesaler, and retailer—
work together as a unified group in order to meet
consumer needs.
Types of VMS
1. Administritative VMS:
One member of the channel is large and powerful
enough to coordinate the activities of the other
members without an ownership stake.

2. Corporate VMS:
One member of the distribution channel owns the
other members but each continues to perform a
separate task. An example for the corporate is Apple
who is responsible for doing everything related with
their products.
Apple Company has place for the designing and also
the making of the products. These products that are
made by the company are sold in the retailer shops of
the company itself. They need not have to depend on
any of the other people for the purpose of production
or even selling of the products.

3. Contractual VMS:
Independent firms are joined together by contract for
their mutual benefit. An example can be a retailer
cooperative or a franchise organization.
Q9: What are the Channel Design Decisions?
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