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 and, as such, which consists of all the institutions and all the marketing activities in the marketing process. A marketing channel is a useful tool for management.[1] Roles of marketing channel in marketing strategies:
y y y y y

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.

An example of this is Apple orchard: Apple orchard >Transport > Processing factory > Packaging > > Final product to be sold > Apple pie eaten An alternative term is distribution channel or 'route-to-market'. It is a 'path' or 'pipeline' through which goods and services flow in one direction (from vendor to the consumer), and the payments generated by them flow in the opposite direction (from consumer to the vendor). A marketing channel can be as short as being direct from the vendor to the consumer or may include several inter-connected (usually independent but mutually dependent) intermediaries such as wholesalers, distributors, agents, retailers. Each intermediary receives the item at one pricing point and moves it to the next higher pricing point until it reaches the final buyer.

An intermediary (or go-between) is a third party that offers intermediation services between two trading parties. The intermediary acts as a conduit for goods or services offered by a supplier to a consumer. Typically the intermediary offers some added value to the transaction that may not be possible by direct trading. Common usage includes the insurance and financial services industry where mortgage brokers, insurance broker, and financial advisers offer intermediation services in the supply of financial products such as mortgage loans, insurance, and investment products. In barter, an intermediary is a person or group who stores valuables in trade until they are needed, parties to the barter or others have space available to take delivery of them and store them, or until other conditions are met. In a larger sense, an intermediary can be a person or organization who or which facilitates a contract between two other parties. The Internet is creating a transparent awareness on the threats and opportunities available to automate intermediaries in many industries - see Disintermediation.

[edit] Types of Intermediaries

Intermediaries can be classified as merchant intermediaries or as accountant intermediaries. In innovation, Innovation Intermediaries facilitate and broker the interactions of producers, users necessary to build markets and turn inventions into successful innovation. This is intermediary role can played by government agencies, consultants, etc.

Intermediaries
y

An intermediary is a person who acts on behalf of another person in connection with futures and options trading. Intermediaries are generally required to register with the Commission and, depending on the nature of their activities, may be subject to various financial, disclosure, reporting, and recordkeeping requirements. Intermediaries defined in the Commodity Exchange Act and Commission regulations include: Futures Commission Merchant (FCM)

o o

Solicits or accepts orders for futures or options contracts traded on or subject to the rules of an exchange; and In or in connection with such solicitation or acceptance of orders, accepts money, securities, or property (or extends credit in lieu thereof) to margin, guarantee, or secure any trades or contracts that result or may result.

Introducing Broker (IB)

o o

Solicits or accepts orders for futures or options contracts traded on or subject to the rules of an exchange; and Does not accept any money, securities, or property (or extend credit in lieu thereof) to margin, guarantee, or secure any trades or contracts that result or may result.

Commodity Pool Operator (CPO)

o o

Engages in the operations of a collective investment vehicle; and In connection therewith, solicits or accepts funds, securities, or property for the purchase of interests in the collective investment vehicle.

Commodity Trading Advisor (CTA) For compensation or profit:

o

Engages in the business of advising others, either directly or through publications, writings, or electronic media, as to the value of or the advisability of trading in, any futures or options contract traded on or subject to the rules of an exchange, or any commodity option; or As part of a regular business, issues or promulgates analyses or reports concerning any of the activities referred to above.

The Division of Swap Dealer and Intermediary Oversight (DSIO) oversees the compliance activities of the futures industry self-regulatory organizations (SROs), including the U.S. futures exchanges and National Futures Association (NFA), with respect to financial and other requirements applicable to intermediaries. DSIO conducts periodic reviews of SRO programs. SRO OVERSIGHT REPORTS

Introduction There is a variety of intermediaries that may get involved before a product gets from the original producer to the final user. These are described briefly below: Retailers Retailers operate outlets that trade directly with household customers. Retailers can be classified in several ways: Type of goods being sold( e.g. clothes, grocery, furniture) Type of service (e.g. self-service, counter-service) Size (e.g. corner shop; superstore) Ownership (e.g. privately-owned independent; public-quoted retail group Location (e.g. rural, city-centre, out-of-town) Brand (e.g. nationwide retail brands; local one-shop name) Wholesalers Wholesalers stock a range of products from several producers. The role of the wholesaler is to sell onto retailers. Wholesalers usually specialise in particular products. Distributors and dealers Distributors or dealers have a similar role to wholesalers that of taking products from producers and selling them on. However, they often sell onto the end customer rather than a retailer. They also usually have a much narrower product range. Distributors and dealers are often involved in providing after-sales service. Franchises Franchises are independent businesses that operate a branded product (usually a service) in exchange for a licence fee and a share of sales. Agents Agents sell the products and services of producers in return for a commission (a percentage of the sales revenues)