Learning objectives: Define a marketing channel, explain why manufacturers choose to use intermediaries, define the marketing functions that constitute the work of the channel, identify the members of marketing channels and the functions in which they specialize and other contents. | 1/8/2018 Chapter 1: Understanding Channel Strategies DINH Tien Minh LEARNING OBJECTIVES Define a marketing channel. Explain why manufacturers choose to use intermediaries. Define the marketing functions that constitute the work of the channel. Identify the members of marketing channels and the functions in which they specialize. Outline the elements of a framework for marketing channel design and implementation. 2 THE IMPORTANCE OF MARKETING CHANNEL STRATEGIES Marketing channels represent a significant portion of the world’s business. The channel is a gatekeeper between the manufacturer and the end-user. The channel experience determines people’s perceptions of the manufacturer’s brand image and thus end-user satisfaction. Marketing channel is an important asset in the company’s overall marketing and positioning strategy. 3 1 1/8/2018 WHAT IS A MARKETING CHANNEL STRATEGY? Marketing channel or marketing channel system, defined as a set of interdependent organizations involved in the process of making a product or service available for use or consumption. The set of activities focused on designing and managing a marketing channel to enhance the firm’s sustainable competitive advantage and financial performance. (Robert et al., 2015) 4 WHO PARTICIPATES IN MARKETING CHANNELS? Manufacturers Intermediaries (wholesale, retail, and specialized) End-users (business customers or consumers). 5 WHO PARTICIPATES IN MARKETING CHANNELS? Manufacturers: Upstream Channel Members Manufacturers that brand their products are known by name to end-users. Manufacturers that make products but do not invest in a branded name for them produce private-label products. The manufacturer need not be the channel captain 6 2 1/8/2018 WHO PARTICIPATES IN MARKETING CHANNELS? Intermediary refers to any channel member other than the manufacturer or the end-user. Three general types: Wholesale Retail Specialized 7 WHO PARTICIPATES
