Marketing Channels:

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Marketing Channels Information-Driven, Customer-S
teered
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Marketing Channels
Originally defined as Paths through which goods
or materials can move from producers to users.
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Middleman or Intermediaries
Middlemen or Intermediaries create value by
reducing the spatial separation the physical
distance between the point of production and
point of consumption between manufacturers and
ultimate users of products or services.
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Marketing Channels Act as Exchange Facilitators
Therefore we define a Marketing Channel as
exchange relationships that create customer value
in the acquisition, consumption and disposition
of products and services
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The Evolution of Marketing Channels
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Coca-Cola USA
CONSUMERS
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Elements of Successful Marketing Channels

• Pooled Resources
• Collective Goals
• Connected System
• Flexibility

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Channel Intermediaries
Individuals or organizations who mediate exchange
utility in relationships involving two or more
partners.
Intermediaries generate form, place, time, and/or
ownership values by bringing together buyers and
sellers.
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c
r
a
M

• create utility by contributing to Contractual
  efficiency
• facilitating Routinization
• simplifying Assortment
• Minimizing uncertainty within marketing channels

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1. Contractual Efficiency
CCustomer IIntermediary MManufacturer
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1. Contractual Efficiency
CCustomer IIntermediary MManufacturer
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1. Contractual Efficiency
CCustomer IIntermediary MManufacturer
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1. Contractual Efficiency
CCustomer IIntermediary MManufacturer
Exhibit 1.2
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2. Routinization

• The means by which transaction processes are
  standardized to improve the flow of goods and
  services through marketing channels.
• Advantages
• Expectations of exchange partners becomes
  institutionalized.
• Channel partners can concentrate on their core
  business.
• Strengthens the channel partner relationship.

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3. Sorting

• The smoothing function.
• Two tasks
• Catagorizing.
• Breaking bulk.

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Minimizing Uncertainty

• Three Types
• Need Uncertainty
• Market Uncertainty
• Transaction Uncertainty
• Uncertainty can be minimized.

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Channels Relationship Model
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Channels Relationship Model

• Channel Exosystems
• Channel Mesosystems
• Channel Microsystems

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Creating Customer Value

• Four Components
• Form Utility
• Place Utility
• Possession Utility
• Time Utility
• Maintaining Customer Relationships

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Products and Services Flows

• Acquisition
• Consumption
• Outsourcing
• Extramediaries
• Disposition
• Reverse logistics