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Marketing Channels

BY
N E HA A RYA
A S S I STA NT P R OFESSOR
A DVA N CE D E D U C AT I ONA L I N ST I T UT I ONS

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A marketing channel is a methodology which
involves certain activities to transfer goods
from one point to another.

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Flow of The Lesson
• Channel Members
• Levels of Marketing Channel
• B2B &B2C
• Channel Utility
•Conclusion

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Introduction of the Topic
Every firm make efforts to reach their prospective customers. Marketing channel members are
the source by which firm can contact their customers. Main channel members are as follows-

Channel
Members

Franchisee Retailer
Distributor/
Wholesaler

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Zero level Channel
Manufacturer End User
Levels of (Customer)

Marketing One level Channel

Channel Manufacturer Retailer End User


(Customer)
From Manufacturer to End User
Two level Channel
Manufacturer Wholesaler Retailer End-user
(Customer)

Three level Channel


Manufacturer Franchisee Wholesaler Retailer End User
◦ (Customer)

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Franchisor Franchisee is a channel member which continues the chain of supply
from franchisor to the next channel member.

Wholesaler/ Wholesaler purchases product in bulk and sells the product to the other
Distributor channel member or retailer .

Retailer Retailer purchases product single item wise and sells it to the customer.

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There are basically two marketing
channels: B2B AND B2C

B2B Business to Business

B2C Business to Consumer


Difference between B2B and B2C
B2B B2C
1. Multiple purchasers are involved in the process. 1. Single purchaser is involved in the process.
2. Market area for the purchaser is smaller. 2. Market area for the purchaser is larger.
3. High price is involved in the ordering process. 3. Low price is involved in the ordering process.
4. Long term relationship is involved. 4. Short term relationship is involved.
5. Face to face interaction is required. 5. Face to face interaction is not required.
Channel Utility

Endorsement Proper Cooperation Add Risk


Delivery Value Sharing

Channel Utility
Channel Utility shows the importance of channel members
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Conclusion
Marketing channel members play a vital role in marketing activities because channel
members serve many functions, which includes creating usefulness of the product
and then supporting the exchange process.
Exchange process can be called successful only when the functions performed by all
the channel members has some utility. Relationships among channel members also
forms a supply chain which ultimately satisfies the consumer.

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