Marketing channel policies
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A marketing channel consists of all the institutions and activities involved in transferring goods from production to consumption, including producers, buyers, and middlemen. It performs important functions like linking producers to buyers, sales and promotion, influencing pricing strategy, and customizing products. When determining the appropriate marketing channel strategy, factors to consider include product characteristics, market conditions, company resources and goals, and the available middlemen and their potential services.
Marketing channel policies
- 1. A marketing channel is a set of practices or activities necessary to transfer the ownership of goods, and to move goods, from the point of production to the point of consumption and, as such, which consists of all the institutions and all the marketing activities in the marketing process. A marketing channel is a useful tool for management
- 2. Link producers to buyers Performs sales, advertising and promotion Influences the firms pricing strategy Affecting product strategy through branding, policies, willingness to stock. Customizes profits ,install ,maintain ,offer credit, etc.
- 4. push strategy: Pull strategy:
- 5. 1. product consideration Unit value Perish ability Bulk and weight Standardisation Technical nature Product line Age of product
- 6. 2. market consideration: consumer or industrial market Number and location of buyers Size and frequency of order Customers buying habits
- 7. 3. Company considerations: Market standing Financial resources Management Volume of production Desire for control of channel Services provided by manyfactures
- 8. 4. Middlemen consideration: o availability o Attitude o Services o Sales potential o Costs o Customs and competition o Legal constraints