Marketing Channel Management

Marketing Channel Management

Marketing Channel Management – The distribution channels that companies use to reach consumers, we can identify with the term marketing channel system.

This system is very important for a company to have to reach a wider market share. Good for the products to reach remote parts of the country, to various parts of the world.

So what is a marketing channel and its types and functions? To be able to understand it, please see the following article.

Marketing Channel Management

What is a Marketing Channel?

Marketing channels or in English marketing channels are the resources and activities that companies need to change the position of goods from production to consumption.

Marketing channel management is a number of stages until the product reaches the end user and we also know it as the distribution flow.

 

Types of Marketing Channels

Determination of product distribution channels is a very important point. Marketers must be able to take into account which channels they will use in terms of product marketing.

The types of marketing channels include:

manufacturer – consumer

As we know, companies produce goods in factories. Which in the first type sells it directly to consumers. For example retailers and wholesalers.

However, in this type, it does not mean that it has to be on a large scale, such as a company that has a factory. But it can be in the form of a small business. Examples included in this type of marketing channel are fried rice sellers who sell their wares directly to consumers.

 

Manufacturer – retailer – Consumer

Retailers buy products to manufacturers, then resell them to consumers. This channel is especially often used by manufacturers in the grocery category. An example is a clothing store.

 

Manufacturers – Agents – Wholesalers – Retailers – Consumers

This type of distribution involves more than one intermediary, so there are three intermediaries before the product ends up in the hands of consumers.

In this type, the agent plays a very important role. For example, selling fish that must be fresh. The company contacted agents in bulk.

Then the agents distribute the fish to various wholesalers. Then wholesalers sell to retailers and finally consumers buy the fish.

 

Marketing Channel Function

In the marketing channel, there are five functions, namely:

Provide information about consumer behavior trends and competitors. What are the expectations of consumers, so that companies can adjust their products or promos.

Is an extension of the tongue of producers in delivering messages to consumers, so that consumers are interested in buying a product.

Tells the estimated amount of demand or demand for the product. So that companies can prepare products in quantities that are in accordance with consumer demand. And there is no shortage of products.

Cutting funds for marketing is not burdensome or centered on one channel, but on multiple levels.

Ensure product availability so that it is sufficient to distribute the product to consumers continuously in the long term.

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