Fundamentals of Marketing

MKT243
Chapter 7 Marketing Channels
Channel is more than Where
do we find the product.. rather
than How do the product arrive
for our consumption.
 • Definition of Marketing channels
• Channel intermediaries and their function
Slides
• Consumer channel structure and level of
Outlines channel distribution intensity
• Channel strategy decision
Marketing Channel/
Distribution channel • A set of interdependent
organizations that help make
a product or service
available for use or
consumption by the
consumer or business user

• A set of interdependent
organizations that ease the
transfer of ownership as
products move from
producer to business user or
consumer
Types of Channel Intermediaries
• 1. RETAILER

Sell products mainly 3. AGENT & BROKER

for final users or
Consumer market
Do not take any
title on product.
2. MERCHANT Facilitate selling
WHOLESALER Activities for
Buy products from Producers
Manufacturers, and
Resells to business users
(government, wholesaler,
Or retailers)
Takes title to product
Or stores
 Specialization of labor
Why are
channel Providing contact
efficiency
members used?
Overcoming Discrepancies
 Discrepancy of quantity

• The differences between amount of product produced and

the amount an end user wants to buy

Discrepancy of assortment

• The lack of all the items a customer needs to receive full of

Overcoming satisfaction from a product or products.

discrepancies Temporal discrepancy

• A situation that occurs when a products is produce but a

customer is not ready to buy it.

Spatial discrepancy

• The difference between the location of a producer and the

location of widely scattered markets.
Key function of
marketing
channel
member
Channel Structure
(Consumer
Product)
Factor
Affecting
Channel
Choices