Marketing Management - Channel Decisions

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Marketing Management I - Channel

Decisions
Channel Design Decision
Channel design decisions refer to the process of selecting and managing the
different intermediaries and activities involved in the distribution of a product
or service. One important channel design decision is determining the number of
marketing intermediaries to use. There are three main options for this decision:
 Intensive distribution: In this strategy, a company aims to make its product available
through as many outlets as possible. This is often used for products that have broad
appeal and are widely available. For example, soft drinks are often sold in
supermarkets, convenience stores, gas stations, and vending machines.
 Selective distribution: In this strategy, a company selects a limited number of
intermediaries to distribute its product. This is often used for products that require
more personal selling and customer support. For example, high-end electronics
products may be sold only through authorized dealerships that can provide
demonstrations and support.
 Exclusive distribution: In this strategy, a company selects a single intermediary to
distribute its product. This is often used for luxury or specialized products that require
a high level of personal service and support. For example, a luxury car brand may sell
its products exclusively through its own dealerships.
Channel Management Decision
Channel management decisions involve the process of selecting, managing,

motivating, and evaluating channel members to ensure the effective and efficient
distribution of products or services.
1. Selecting Channel Members: Companies need to select channel members based on

their ability to reach the target market, their reputation, financial strength, marketing
capability, and willingness to cooperate.
2. Managing Channel Members: Once the channel members are selected, companies
need to manage them effectively by establishing clear objectives, policies, and
procedures. They also need to provide support such as training, information, and
incentives to ensure that channel members are motivated to promote and sell their
products or services.
3. Motivating Channel Members: Motivating channel members is critical to the
success of a distribution strategy. Companies can use a range of incentives, including
discounts, bonuses, commissions, and cooperative advertising, to encourage channel
members to sell more products or services.
4. Evaluating Channel Members: Companies need to evaluate channel members
regularly to ensure that they are meeting the objectives set out in the channel
strategy. This involves measuring their performance in terms of sales volume, market
share, customer satisfaction, and profitability, and taking corrective action if
necessary.
Effective channel management can help companies to build long-term relationships

with their channel partners and increase the efficiency and effectiveness of their
distribution strategy.
Wholesaling and Retailing
Wholesaling and retailing are two important functions in the distribution of goods
and services. Wholesaling
involves the sale of goods or
merchandise to retailers or other businesses, while retailing involves
the sale of goods or services directly to consumers.
Wholesaling
Wholesaling involves the sale of goods or merchandise to retailers or other

businesses. Wholesalers typically purchase goods in large quantities from
manufacturers or other suppliers and then sell them to retailers, who then sell
the goods to end consumers. Wholesalers perform several important functions,
including:
1. Providing storage facilities to hold inventory before it is sold.
2. Breaking bulk, which means buying goods in large quantities and then selling them in
smaller quantities to retailers.
3. Providing financing to retailers by offering credit terms.
4. Providing logistical support, such as transportation and delivery services.
There are different types of wholesalers, including merchant wholesalers, brokers,

agents, and manufacturers' sales branches and offices.
Retailing
Retailing involves the sale of goods or services directly to consumers. Retailers can
be brick-and-mortar stores or online retailers. Retailers perform several important
functions, including:
1. Providing a location where customers can view and purchase goods or services.
2. Creating attractive displays to promote merchandise.
3. Offering customer service and support, such as answering questions and processing
returns.
4. Providing financing to customers through credit and payment plans.
There are different types of retailers, including department stores, specialty stores,
supermarkets, convenience stores, and online retailers. Retailers often use different
strategies to attract and retain customers, such as price discounts, loyalty programs,
and advertising.
Retailer Marketing Decisions
Retailer marketing decisions refer to the various strategies and tactics that retailers
use to attract and retain customers, increase sales and profitability, and create a
unique shopping experience. Here are some of the key retailer marketing decisions:
 Store location: Retailers need to carefully select the location of their stores based on
factors such as customer demographics, traffic patterns, and competition.
 Store design and layout: Retailers need to create an attractive and functional store
design and layout that facilitates a positive shopping experience for customers.
 Product assortment: Retailers need to carefully select the products they offer in their
stores based on factors such as customer preferences, seasonality, and trends.
 Pricing strategy: Retailers need to set prices that are competitive with other retailers,
while still allowing them to generate sufficient profit margins.
 Promotional strategy: Retailers need to develop a promotional strategy that will
attract and retain customers. This may include advertising, sales promotions, and
other marketing tactics.
 Customer service: Retailers need to provide excellent customer service to build
customer loyalty and create a positive shopping experience.
 Inventory management: Retailers need to manage their inventory levels effectively
to ensure that they have the right products in stock at the right time.
 Technology adoption: Retailers need to embrace new technologies to improve their
operations and create a more seamless shopping experience for customers. This may
include technologies such as mobile payments, e-commerce platforms, and virtual
reality.
Retailer marketing decisions are critical to the success of retail businesses, as they
help to create a unique value proposition that differentiates them from their
competitors and attracts and retains customers.

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Marketing Management I - Channel

Channel Management Decision

Channel management decisions involve the process of selecting, managing,

1. Selecting Channel Members: Companies need to select channel members based on

Effective channel management can help companies to build long-term relationships

Wholesaling and Retailing

Wholesaling involves the sale of goods or merchandise to retailers or other

There are different types of wholesalers, including merchant wholesalers, brokers,

Retailer Marketing Decisions

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