CHANNEL

PARTICIPANTS
 2

What is Channel
Participant?
 3

CHANNEL PARTICIPANTS
are the participants that engage in negotiatory
functions linked together by the flows of negotiation
and ownership, and are therefore members of the
marketing channel.
 4

To make the distribution and selling of

goods and products efficient.
What is the Intermediaries provide manufacturers
major role of opportunities which for them
financially would not be feasible.
channel Intermediaries provide greater market
participants? exposure, market intelligence,
economies of scale and operational
knowledge.
 5

Yes

Do they
perform
negotiatory
functions?
Transportation firms

Storage firms
Classification of
Advertising agencies
No
Facilitating
agencies Financial firms Channel
Insurance firms
Participants
Marketing research firm
 6

Basic Division of Marketing

Channel
1. Producers and Manufacturers
2. Intermediaries
a. Wholesale Intermediaries
b. Retail Intermediaries
3. Final Users
a. Consumers
b. Industries
 Producers and Manufacturers
Producers and manufacturers consist of firms that are
involved in the extracting, growing, or making of
products. For the needs of the customers to be satisfied
products must be made available to customers
when, where and how they want them
 8

Intermediaries
▫ Also known as middlemen.
▫ Are independent business that assist producers and
manufacturers in the performance of negotiatory
functions and other distribution tasks.
▫ They operate at the two basic levels:
▪ Wholesale Intermediaries
▪ Retail Intermediaries
 9

WHOLESALE INTERMEDIARIES
❖ Also known as wholesaler/s.
❖ Consists of businesses that are engaged in selling goods for
resale or business use to retail, industrial, commercial,
institutional, professional or agricultural firms, as well as to other
wholesalers.
❖ This classification categorizes wholesalers into three major types:
❖ Merchant wholesalers
❖ Agents, brokers, and commission merchants
❖ Manufacturers’ sales branches and offices
 10

All wholesale
firms
Schematic
Overview of the
Three (3) Major
Independent Manufacturer
Types of middlemen owned

Wholesalers
Agents, brokers, Manufacturers’
Merchant sales branches
and commission
wholesalers and offices
merchants
 11

MERCHANT WHOLESALERS
are firms engaged primarily in buying, taking title to,
usually storing, and physically handling products in
relatively large quantities and then reselling the products in
smaller quantities to others. They go under many different
names such as: wholesaler, jobber, distributor, industrial
distributor, supply house, assembler, importer, exporter,
and others
 AGENTS, BROKERS AND 12

COMMISSION MERCHANTS
are independent middlemen who do not take title to the goods
in which they deal, but who are actively engaged in the
buying and selling functions on behalf of others. They are
usually compensated in the form of commissions on sales or
purchases. They also go under other names such as selling
agents and import and export agents
 MANUFACTURERS’ SALES 13

BRANCHES AND OFFICES

are owned and operated by manufacturers but are
physically separated from the manufacturing
plants. They are used primarily for the purpose of
distributing the manufacturer’s own products at
wholesale.
 14

RETAIL INTERMEDIARIES

“
❖ Consist of business firms engaged primarily in selling
merchandise for personal or household consumption and
rendering services incidental to the sale of goods
❖ They buy products from manufacturers or other
intermediaries and sell them to the end consumer.
 15

RETAILING TYPES
Retailing can be divided into five types. Here are the types of
retailing that exists today –
▫ Store retailing
▫ Non-store retailing
▫ Corporate retailing
▫ Internet retailing
▫ Service retailing
 16

STORE RETAILING
This includes different types of retail stores like
department stores, speciality stores,
supermarkets, convenience stores, catalogue
showrooms, drug stores, superstores, discount
stores, extreme value stores etc.
 17
NON-STORE RETAILING
It is a type of retailing where the transaction happens
“
outside conventional shops or stores. It is further divided
into two types – direct selling (where the company uses
direct methods like door-to-door selling) and automated
vending (installing automated vending machines which sell
offer a variety of products without the need of a human
retailer).
 18

CORPORATE RETAILING
It involves retailing through corporate
channels like chain stores, franchises, and
merchandising conglomerates. Corporate
retailing focuses on retailing goods of only
the parent or partner brand.
 19

INTERNET RETAILING
Internet retailing or online retailing works on
a similar concept of selling small quantities of
goods to the final consumer, but they serve a
larger market and don’t have a physical retail
outlet where the customer can go and touch
or try the product.
 20

SERVICE RETAILING
Retailers not always sell tangible goods;
retail offerings also consist of services. When
a retailer deals with services, the process is
called service retailing. Restaurants, hotels,
bars, etc. are examples of service retailing.
 21
FACILITATING AGENCIES
⮚ A marketing channel which is not directly involved
in transfer of product from producer to consumer.
⮚ An agency or organization which provides
specialized assistance to members of a marketing
channel; the facilitating channel institution does
not take title to the goods.
 COMMON TYPES OF 22

FACILITATING AGENCIES
⮚ Transport Companies
⮚ Banks And Financial Institutions
⮚ Insurance Companies
⮚ Advertising Agencies
⮚ Warehousing Companies
⮚ Market Research Firms
23