Manufacturers normally use intermediaries for taking their products to the users. The inter-mediaries bear a variety of names. Chart 28.3 presents a list of the commonly used names.
All such intermediaries constitute the marketing channel. The manufacturer's branch of-fices, depots, warehouses and showroom too form part of the marketing channel. Where institutional channels like chain stores, super markets, etc., are used by the firm, they too form part of the marketing channel of the firm.
Channels play a pivotal role in marketing, they perform a number of vital distribution functions. Their importance emanates from the functions performed by them.
Firms rely on the marketing channels for generating customer satisfaction and for achieving differentiation over competitors. Channels are thus a vital source of competitive advantage for the firm.
Meaning
A channel of distribution is a group of individuals and organisations that direct the flow of products from producers to customers. The main function of this element is to find out appropriate ways through which goods are made available to the markets.
Definitions:
According to American Marketing Association,"A channel of distribution or marketing channel is the structure of intra company organization units and extra company agents and dealers, wholesalers and retailers through which a commodity, product or services is marketed.
According to Philip Kotler, "Every producer seeks to link together the set of marketing intermediaries that best fulfil the firm's objectives. This set of marketing intermediaries is called the marketing channel (also trade channel or channel of distribution)".
All such intermediaries constitute the marketing channel. The manufacturer's branch of-fices, depots, warehouses and showroom too form part of the marketing channel. Where institutional channels like chain stores, super markets, etc., are used by the firm, they too form part of the marketing channel of the firm.
Channels play a pivotal role in marketing, they perform a number of vital distribution functions. Their importance emanates from the functions performed by them.
Firms rely on the marketing channels for generating customer satisfaction and for achieving differentiation over competitors. Channels are thus a vital source of competitive advantage for the firm.
Meaning
A channel of distribution is a group of individuals and organisations that direct the flow of products from producers to customers. The main function of this element is to find out appropriate ways through which goods are made available to the markets.
Definitions:
According to American Marketing Association,"A channel of distribution or marketing channel is the structure of intra company organization units and extra company agents and dealers, wholesalers and retailers through which a commodity, product or services is marketed.
According to Philip Kotler, "Every producer seeks to link together the set of marketing intermediaries that best fulfil the firm's objectives. This set of marketing intermediaries is called the marketing channel (also trade channel or channel of distribution)".
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