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Chapter 11

Marketing Channels

Book Version 3
By Boundless
Boundless Marketing
Marketing
by Boundless
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Section 1
Marketing Channels in the Supply Chain
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The Significance of Marketing Channels

The primary purpose of any channel of distribution is to bridge the gap between the producer of a product and its user.

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Types of Marketing Channels

There are basically 4 types of marketing channels: direct selling; selling through intermediaries; dual distribution; and reverse channels.

Selecting Marketing Channels

There are four bases for channel alternatives marketers consider after conducting three preliminary activities which help determine goals.

Section 2
Channel Intermediaries
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Functions of Intermediaries

Intermediaries make it possible for a company to deliver its products to the end user without needing to own the whole supply chain.

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Streamlining Distribution

Streamlining distribution involves the planning and efficient use of supply chain resources and may involve working with intermediaries.

Section 3
Channel Structures
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B2C Channels

Brick-and-mortar and e-commerce are two main channels of business-to-consumer marketing.

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B2B Channels

B2B channels are often the same as B2C channels, but typically there is a greater emphasis on personal touch.

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Alternative Arrangements

Business-to-government, consumer-to-consumer, and institutional markets are additional types of marketing channels.

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Customer Expectations

A customer can expect varying levels of service and product offerings at different consumer channels.

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Channel Member Characteristics

To maximize sales, a company must carefully consider the fit between its products and the available distribution channels.

Section 4
Channel Strategy Decisions
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Factors Affecting Channel Choice

Channel choice involves understanding the ultimate user and how they prefer to purchase merchandise.

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Distribution Intensity

Product distribution intensity refers to the scale of the distribution network as well as the appropriate selection of location.

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Distribution Centers vs. Direct Store Delivery

Depending on customer needs, marketing channel strategies can utilize distribution centers or move products directly to a store.

Section 5
Marketing Channel Relationships
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Competitive Priorities in Marketing Channels

A marketing channel is a set of practices necessary to transfer the ownership of goods from producer to consumer.

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Channel Power, Control, and Leadership

Channels perform better if a party is in charge, providing a level of leadership to coordinate goals and efforts.

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Channel Partnering

A channel partner is a company that partners with a manufacturer or producer to market and sell that company's products.

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Channel Integration

The integration of marketing channels to varying degrees is known either as multi-channel or omni-channel retailing.

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Boundless Marketing by Boundless
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Branding and Packaging
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Chapter 11
Marketing Channels
  • Marketing Channels in the Supply Chain
  • Channel Intermediaries
  • Channel Structures
  • Channel Strategy Decisions
  • Marketing Channel Relationships
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Integrated Marketing Communications
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