Marketing Channels and

Value Networks
What is a Marketing Channel?
• A set of independent organizations created to
deliver value, i.e., to make a product available
for use or consumption.
• Comprises of intermediaries.
Intermediaries Involved
• Merchants- Buy, take title to, and resell.
• Agents- Negotiate on producer’s behalf, do
not take title to.
• Facilitators- Assist in distribution, neither take
title to, nor negotiate.
Why is the channel important?
• They carry product
• They promote the product
• They sell the product
Marketing Channels don’t just serve the market,
they make the market

Push Strategy: Pull Strategy:

-Uses promotion tools, -Uses advertising
sales force to sell. and other modes to
create demand.
-Used in case of low -Used in case of high
brand loyalty. brand loyalty.
A marketing channel can function via:
Hybrid Channel Marketing

• Occurs when a single firm uses two or more

marketing channels to reach customer
segments.
Channel Integration

• All channels must work together and none of

them should interfere in the business of
another.
Value Networks
One Example: Apple
Demand Chain Planning

Estimate whether more money

Think of the target market is made upstream or
downstream

Opt for different modes to

Get an idea of disturbances in
reduce costs, and increase
the supply chain
accuracy
References
Slide No. Reference
1 www.2012books.lardbucket.org
2 www.theagencyguy.com
3 www.xitocapital.com
4 www.startups.fm
6 catalog.flatworldknowledge.com
7 www.insync.co.in
8 www.slideshare.net
9 www.ebusinessguru.co.uk
11 www.timkastelle.org