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Marketing channels are set of mutually dependent organizations involved in the process of making product or service available for utilization. In indirect channel, companies manufacture products in huge scale and sell these products to middle man for example whole seller and retailers. Manufacturer to Customer: Manufacturer produces the goods and sells them to the customer directly with no mediator, such as a wholesaler, agent or retailer.
Manufacturer to Retailer to Consumer: Purchases are made by the seller from the manufacturer and then the retailer sells the products to the consumer.
Manufacturer to Agent to Wholesaler to Retailer to Customer: This type of distribution involves more than one intermediary involves an agent called in to be the middleman and help with the sale of the goods. It is important to consider some factors when choosing appropriate marketing channel such as product, market, company. Designing a marketing channel system entails factors such as analysing customer needs, establishing channel objectives, identifying major channel alternatives, and evaluating major channel alternatives.
Analysing Customersa€™ Desired Service Output Levels: The marketer must recognize the service output levels which its target customers want. Waiting and delivery time: The average time consumers of that channel wait for receipt of the goods.
Spatial convenience: The extent to which the marketing channel facilitate for customers to obtain the product. Service backup: The add-on services such as credit, delivery, installation, repairs provided by the channel.
Providing greater service outputs denotes increased channel costs and higher prices for consumers.
Another factor in designing a marketing channel system is that marketers must declare their channel objectives in terms of targeted service output levels. The Company must assess each alternative against suitable economic, control, and adaptive criteria. To Mange marketing channel, firms must adopt motivational strategies such as paying higher slotting allowances, offering higher trade discount, providing strong promotional and advertising support, training channel member sales people, giving high level logistic support.
Selecting Channel Members: For successful management, Companies must have to choose talented channel members cautiously because for customers, the channels are the company. Training and Motivating Channel Members: It is a major responsibility of a company to examine its intermediaries in the same way it views its customers. Evaluate Channel Members: To successfully manage market channel, producers must assess intermediariesa€™ performance at regular intervals against such standards as sales-quota attainment, average inventory levels, customer delivery time, treatment of damaged and lost goods, and cooperation in promotional and training programs. Modifying Channel Arrangements: Channel arrangements must be reassessed regularly and altered when distribution does not work as planned, consumer buying patterns change, the market develops, new competition occurs, inventive distribution channels appear, and the product moves into later stages in the product life cycle. The most challenging face of channel management is the maintenance of control over all parts of distribution flow and marketing activities. Carevium senior living CRM application includes a comprehensive Marketing Contacts and Outreach Activities management module, in addition to the Prospects Management and Referral Tracking module.
Carevium CRM also includes a comprehensive module to keep track of marketing notes, tasks, and activities.
Please take a look at the Prospects Management and Referral Tracking section to learn about the prospect capture, referral tracking, sales stages, lead analysis reports, etc. About CareviumCarevium enables compassionate care for seniors by empowering caregivers - both professional and family caregivers.
It is established in academic studies that Marketing channels are the means by which goods and services are made available for use by the customers. The firma€™s sales force and advertising decisions depend on how much training and inspiration dealers need. It is observed that middle man plays vital role in distribution of product in market channel.
Usually, consumers prefer a greater collection, which enhances the chance of finding what they need.
The triumph of discount resellers (online and offline) designates that many consumers will accept lower outputs if they can save money.

In competitive conditions, channel institutions should coordinate their functional tasks to reduce total channel costs and still offer desired levels of service outputs. Companies may select array of channels to approach customers, each of which has distinctive strengths as well as limitations.
Number of Intermediaries indicates that to choose intermediaries to use, companies can adopt one of three strategies: exclusive, selective, or intensive distribution.
The firm should verify whether its own sales force or a sales agency will create more sales and it estimates the costs of selling different quantities through each channel. Management of marketing channel refers to the process of analysing, planning, organizing and controlling its marketing channel.
Management professional stated that after a firm has selected a channel system, it must select, train, motivate, and evaluate individual intermediaries for each channel. Producers should decide what features distinguish the better intermediaries and scrutinize the number of years in business, other lines carried, growth and profit record, financial strength, cooperativeness, and service reputation of potential channel members.
It needs to establish intermediariesa€™ needs and build a channel positioning such that its channel offering is tailored to provide superior value to these intermediaries. A producer will occasionally determine that it is paying particular intermediaries too much for what they are actually doing. Marketers have to undergo legal issues in controlling marketing channels therefore they need to develop successful channel programs that will stimulate the action planned without creating conflict among competitive channel members. Marketing staff in the senior living communities can use this module to manage contacts, and keep track of marketing activities, tasks, notes, etc.
Marketing Activities list can be filtered using multiple filters such as activity status or date, contact person, type of contact, marketing staff, etc. All goods go through channels of distribution, and marketing will depend on the way goods are distributed.
A push strategy uses the manufacturera€™s sales force and trade promotion to encourage intermediaries to carry, promote, and sell the product to customers. The wholesaler reduces some of the cost to the consumer such as service cost or sales force cost, which makes the purchase price cheaper for the consumer. Agents are useful when products or services need to move rapidly into the market soon after the order is placed.
The core responsibility of intermediaries is to deliver products to customers in their desired location. Generally, planners can recognize several market segments that want different service levels. Each channel alternative is explained by (i) the types of available intermediaries (ii) the number of intermediaries needed; and (iii) the terms and responsibilities of each channel member. If the intermediaries are sales agents, producers should assess the number and character of other lines carried and the size and quality of the sales force. To enhance intermediariesa€™ performance, the company should offer training, market research, and other capability-building programs. Producers should establish functional discounts in which they pay specific amounts for the intermediarya€™s performance of each agreed-upon service. Early purchaser might be willing to pay for high-cost value-added channels, but later buyers will change to lower-cost channels. The data is accessible via WiFi or phone carrier-enabled tablets or a PC via web browser anytime. The following screenshot shows a sample marketing activity list of an eldercare community marketer.
Your sales and marketing personnel can get going in a few minutes rather than undergoing days and weeks of training for the complicated CRM systems in the market. The direction that the product takes on its way from production to the consumer is imperative because a marketer must choose which channel is best for his particular product. Holistic marketers guarantee that marketing decisions in all these different areas are made to jointly maximize value. This is suitable where there is low brand loyalty in a category, brand choice is made in the store, the product is desired item, and product benefits are well understood.
In direct channel also known as zero-level channel, manufacturer and customer deal directly with each other.

To accomplish this objective, they purchase goods and store these and then ship to customers. Successful planning needs to determine which market segments to serve and the best channels for each. Types of Intermediaries entails a firm needs to discover the types of intermediaries available to run its channel work. Selective distribution depends on more than a few but less than all of the intermediaries willing to carry a particular product.
One is the establishment of physical distribution system and other is management of marketing objectives.
If the intermediaries want exclusive distribution, the manufacturer should assess locations, future growth potential, and type of customers. The company must also continually strengthen that its intermediaries are to jointly gratify the needs of end users. In highly competitive markets with low entry barriers, the best channel structure will transform over time.
Whether you are working from home or on the road hitting a community event or an industry conference, updated contact information is available for you within a few taps. In a pull strategy, the manufacturer uses advertising and promotion to influence customers to ask intermediaries for the product, thus inducing the intermediaries to order it.
Some intermediary merchants such as wholesalers and retailers buy, take title to, and resell the products. In intensive distribution, the producer places the goods or services in as many outlets as possible.
Management of marketing channel involves all functions of marketing mix which include product, price, physical distribution, program and people.
The company may add or drop individual channel members, add or drop particular market channels, or develop a new way to sell merchandise. This is suitable when there is high brand loyalty and high involvement in the category, people perceive differences between brands, and people choose the brand before they shop. It consists of a producer selling directly to final customers through door-to-door sales, Internet selling, mail order, telemarketing, home parties, TV selling, manufacturer-owned stores, and other methods.
Channel design is also affected by numerous environmental factors as competitorsa€™ channels, monetary conditions, and legal regulations and limitations. Agents such as brokers, manufacturersa€™ representatives, and sales agents chase customers and may bargain on the producera€™s behalf but do not take title to the merchandise. The physical distribution system and channel structure is established through which products flow in the marketing channel. The process of adding or dropping an individual channel member needs an incremental analysis to decide profitability of company. A marketing channel executes the work of moving products from producers to consumers, beat the time, place, and possession gaps that separate goods and services from those who need or want them. Facilitators, including transportation companies, independent warehouses, banks, and advertising agencies, help in the distribution process but neither take title to goods nor negotiate purchases or sales.
Terms and Responsibilities of Channel Members signify that each channel member must be treated courteously and given the opportunity to be lucrative. Additionally, marketers adopt data mining to analyse customer shopping data as input for channel decisions. The main constituents in the a€?trade-relations mixa€? are price policy, conditions of sale, territorial rights, and specific services to be performed by each party. Most marketing channels are created with one or more intermediaries between the manufacturer and consumer. Price policy assists the producer to ascertain a price list and schedule of discounts and allowances that intermediaries see as equitable and sufficient. Channels can become old-fashioned when gap occurs between the existing distribution system and the ideal system to gratify customera€™s needs and wants.

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