Question

Learning Objectives 1. What is a marketing channel system and value network? 2. What work do marketing channels perform? 3. How should channels be designed? 4. What decisions do companies face in managing their channels?

Answer 1

Definetion of Marketing channel

A marketing channels Can be definef As the set of people, Activities, and the intermediary organanizations that play a crucial role in transferring the ownership of the goods. From the point of production Or Manufacturing to the point of consumption.

Basically they are the various channels Or platforms through which the products reach to the consumers Or tje end user.

they are also known as the distribution channel.

VALUE NETWORK

value network is a system of partnership and alliances that a firm creates to source,augment,and deliver its offerings.

it includes: Suppliers supplier,firms supplier, The firm, firms immediate consumer Firms end consumers.

MARKETING CHANNELS

Marketing channels, such as distributors, wholesalers and retailers, provide your buisness with three kinds of functions.

buying products for resale to customers, distributing products to customers and supporting sales to customers through financing and other services.

DISIGINING OF MARKETING CHANNEL

designinh A marketing channel system entails factors Such as analysing customer needs, identifying major channel Altetnatives, and evaluating Major channel Alternatives.

The marketer Most reconize the service output levels which its target customers want. channels produce Five service outputs:

• Lot size: The Number of units the channel allows a particular customer to buy at one time.
• waiting and delivery time. the Average time consumers of that channel wait for recipt of the gods. customers generally prefer fast delivery channels.
• spatial convenence. the extent to which the marketing channel Facilitate for customers to obtain the product.
• product variety: the variety provided by the channel.usually consumers prefer a greater collection which enchancess the chance of finding what they need.
• Service backup: The Add on services such as credit, delivery, installation, repairs provident by the channels.

​​​​​​​ 4. descions

• selecting chanel membets
• Training and Motivating channel Members
• Evaluating channel Members
• modifying chanel design and Arrange
• chanmel modification decisions
• ​​​​​​​global channel considerations.