Banglore Mba Notes
BUSINESS MARKETING
Module 3
MANAGEMENT OF MARKETING CHANNELS
Faculty : Kerena Anand 1. Define a Marketing Channel?
A Marketing channel (also called distribution channel or trade channel) is defined as a set of interdependent organisations that make a product or service available to customers for use. In other words, the link b/w the manufacturers and customers is the channel of distribution.
The marketing logistics (also called physical distribution) consists of delivering the completed products to customers & channel intermediaries. To assist in performing the tasks of storing and moving their goods & services, the industrial firms have to engage the services of ware houses and transportation companies.
2. Explain the nature of business maketing channels Business marketing channels are quite different from the channels used for customer goods and services. The distinctive nature of business channels can be understood from the factors discussed hereunder. 3. What are the factors affecting the nature of business marketing channels?
Geographical distribution: Industrial intermediaries (such as distributers or dealers) are highly concentrated geographically. They are found where industrial market exists, i.e., in large cities or towns with industrial estates. For instance, Mumbai, Delhi, Calcutta, Chennai, Bangalore, Ahmadabad, Hyderabad, are some of the cities that have large number of industrial organisations.
Channel size: Industrial channels are short and involve a type of intermediary for selling handling the products. Sometimes the channels are direct from the manufacturers to the customers, without intermediaries. The reason for the shorter channels in industrial markets is that the organisational buyers expect product availability, technical expertise and servicing capabilities.
Characteristics of intermediaries: industrial intermediaries are often technically qualified and have close relationship with the
Module 3
MANAGEMENT OF MARKETING CHANNELS
Faculty : Kerena Anand 1. Define a Marketing Channel?
A Marketing channel (also called distribution channel or trade channel) is defined as a set of interdependent organisations that make a product or service available to customers for use. In other words, the link b/w the manufacturers and customers is the channel of distribution.
The marketing logistics (also called physical distribution) consists of delivering the completed products to customers & channel intermediaries. To assist in performing the tasks of storing and moving their goods & services, the industrial firms have to engage the services of ware houses and transportation companies.
2. Explain the nature of business maketing channels Business marketing channels are quite different from the channels used for customer goods and services. The distinctive nature of business channels can be understood from the factors discussed hereunder. 3. What are the factors affecting the nature of business marketing channels?
Geographical distribution: Industrial intermediaries (such as distributers or dealers) are highly concentrated geographically. They are found where industrial market exists, i.e., in large cities or towns with industrial estates. For instance, Mumbai, Delhi, Calcutta, Chennai, Bangalore, Ahmadabad, Hyderabad, are some of the cities that have large number of industrial organisations.
Channel size: Industrial channels are short and involve a type of intermediary for selling handling the products. Sometimes the channels are direct from the manufacturers to the customers, without intermediaries. The reason for the shorter channels in industrial markets is that the organisational buyers expect product availability, technical expertise and servicing capabilities.
Characteristics of intermediaries: industrial intermediaries are often technically qualified and have close relationship with the