What Is Marketing Channel Structure
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.
What is marketing channel structure. A list of common marketing channels. The industrial channel levels are a bit more flatter as compared to the consumer channel levels. This is essentially a high level view of your sales and distribution channels that outlines the architecture of your business. Channel flow and structure.
And is also known as a distribution channel. This includes both the process of selling to customers and delivering the product or service to them. Channel levels consist of consumer marketing channels or the industrial marketing channels. Generally the organizations that collectively support the distribution channel are referred to as channel partners.
There are several types of channel structure dependent on the type of goods. A marketing channel is the people organizations and activities necessary to transfer the ownership of goods from the point of production to the point of consumption it is the way products get to the end user the consumer. 1 the consumer channel structure. Retailers hold inventory for consumers.
The marketing channel is one of the key drivers for strategies around the marketing mix i e. Each channel structure includes different organizations. The number of different intermediary levels or stages in the channel i e. Traditionally manufacturers produce goods and then sell them to wholesalers which then sell them to retailers.
The channel flow is a flow which relates different agencies involved in the distribution of goods and products. This channel structure is known for the various kinds of elements it has in its distribution network. A marketing channel is a means of reaching customers with products and services. While channels can be very complex there is a common set of channel structures that can be identified in most transactions.
The consumer channel structure is generally used in fmcg markets or consumer durable markets. A factor common among both channel levels is that both include the producer as well as the end customer. How many different separate types of intermediary are involved so types of intermediary and number of levels determine the structure of a marketing channel. A channel structure is a means of reaching your customer with your products and services.
A marketing channel is a useful tool for management and is crucial to creating an effective and well planned marketing strategy. Let us look at each player in the distribution network and their role in the channel structure. Manufacturers may look for alternatives to the traditional.