SUMMARY REPORT What is marketing channel? Are sets of interdependent organizations involved in the process of making a product or services available for use or consumption? They are set of pathways a product or service follows after production, culminating in purchase and use by final consumer. The importance of channels: One of the chief roles of marketing channels is to convert potential buyers into a profitable order. Marketing channels also represent a substantial opportunity cost. Different consumers however have different needs during the purchase process.
Nunes and Cespedes argue in many markets, buyers fall into four category 1. Habitual shoppers- purchase from same place in the same manner over time. 2. High value deal seekers-know their needs and channel surf a great deal before buying at lowest possible price. 3. Variety-loving shoppers-gather information in many channels take advantage of high touch services and then buy in their favorite channel, regardless of price 4. High-involvement shoppers-gather information in all channels, make their purchase in a low-cost channel, but take advantage of costumer support from high touch channel.
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The role of marketing channels Delegations mean relinquishing some control over how and to whom the products are sold. Producers do gain several advantages by using intermediaries: 1. Many producers lack the financial resources to carry out direct marketing. 2. Producers who do establish their own channels can often earn a greater return by increasing investment in their main business. 3. In some cases direct marketing simply is not feasible. Channels functions and flows: It will be discussed one by one. Using a chart Channel levels: It will be discussed one by one. Using a chart