Being presented by Mr. Hatta

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A marketing channel system is the particular set of interdependent

organizations involved in the process of making a product or service

available for use or consumption.

THE ROLE OF MARKETING CHANNELS IN MARKETING STRATEGY

• Marketing channels are key because they are the means of making goods and services available to ultimate users.

• Four functions of marketing channels:

a. Channels facilitate the exchange process by reducing the number of marketplace contacts necessary to make a sale.

b. Distributors adjust for discrepancies in the market’s assortment of goods and services via sorting, channeling products to meet the buyer’s and producer’s needs.

c. Channel members tend to standardize payment terms, delivery schedules, prices, purchase lots, and other conditions.

d. Channels facilitate searches by both buyers and sellers and bring them together to complete the exchange process.

TYPES OF MARKETING CHANNELS

Most channel options involve at least one marketing intermediary, an organization that operates between producers and consumers or business users.

A retailer owned and operated by someone other than the manufacturer of the products it sells.

A wholesaler who takes title to the goods it handles and then distributes these goods to retailers, other distributors, or sometimes end consumers.

Service firms market primarily through short channels because they sell intangible products and need to maintain personal relationships within their channels.

CHANNEL STRATEGY DECISIONS

SELECTION OF A MARKETING CHANNEL

Multiple factors affect selection of a marketing channel.

Market Factors

Product Factors

Organizational Factors

Competitive Factors

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Being presented by Miss Tika

Channel-DesignDecisions

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Being presented by Miss Ika

Being Presented by Mr. Ary

E-Commerce Marketing Practice

“Behind The Success New Star Retail Business”

Warehouse Management and Automation, Machine, Technology

Price, Place, Service, Promotion

Foreign retail companies

Hypermart, Carrefour, LotteMart

Competition between retail companies : Indomaret, Alfamart, Circle K