Channel marketing intermediaries exist because they offer value in making goods and services more available and accessible to the targeted markets. Channel intermediaries offer contacts, experience, specialization, and economies of scale to organizations that cannot offer these attributes on their own. Marketing channels allow producers to realize the benefits that only larger organizations may be able to support. Each channel intermediary provides value in the form of:
• Information
Collect and disseminate marketing information about potential and current customers, competitors, and other aspects of the marketing process.
• Promotion
Develop and share marketing communications designed to inform and attract customers.
• Negotiation
Reach final agreement on the price and other terms of the transaction.
• Funding
Acquire access to funds to finance inventories at different levels of the marketing channel.
• Risk taking
Take on risks associated with performing the functions of the channel. Obsolete or damaged inventory, bad debt, and slow payment are a few examples of this risk.
• Physical possession
Store and move products from raw materials to the final customers.
• Payment options
The buyers’ payment of their bills to the sellers through banks and other financial institutions.
• Title
Transfer title of ownership from one organization or person to another.
In a functional sense, these are some examples of the types of resources that marketing channels offer. Each adds value to the promotion, the transaction, or the services associated with the purchase:
• Accounting services
• Advertising planning assistance
• Catalog services
• Co-op advertising programs
• Consumer advertising
• Employee training
• Financing
• Insurance programs
• Inventory control systems
• Management consultation services
Through their acquired expertise and economies of scale, channel members offer these activities more efficiently than organizations, particularly smaller ones, could provide on their own. The marketing channel allows the producer and the channel members to do what they each do best in higher volumes.
Label :
how channel members add value, How do channel members add value, channel members, how do channel members add value to a marketing system, what are channel members, how do channel members add value to a product, channel members business, How do channel members add value?, channel members add value, channel intermediariesFiled under: Life Improvement
Trackback Uri