In: Economics
When designing the marketing channel what do marketers take into consideration?
Developing a marketing channel program includes considerations such as evaluating consumer expectations, setting channel targets, defining major channel alternatives and determining major channel alternatives.
Providing higher service levels reflects low channel costs and higher market prices. The dominance of discount resellers (online and offline) suggests that if they can save money many customers can tolerate lower outputs. Another factor in developing a marketing channel program is that in terms of targeted service performance levels, marketers have to announce their channel objectives. Channel organizations should organize their functional activities under competitive conditions to reduce overall channel costs, and still deliver optimal service production rates. In general, planners should consider many segments of the market that want specific rates of service. Effective planning must decide which segments of the market to represent and the best channels for each.
Companies should consider marketing platforms which are innovative. Number of intermediaries means that businesses will follow one of three approaches to choose the intermediaries to use: exclusive, limited, or intense distribution. Exclusive distribution means the number of intermediaries is severely limited. Selective distribution relies on more than a few intermediaries who are willing to bring a specific product. Through concentrated marketing, the producer brings as many channels as possible into the goods or services.
To maximize profit, companies need to efficiently control their marketing channel. Marketing channel management refers to the process by which the marketing channel is evaluated, prepared, coordinated, and managed. Two specific events occur in marketing system. One is the actual delivery system and the other is marketing target management. Marketing channel management includes all marketing mix functions that include commodity, quality, physical delivery, system and people.
In sum up, the source of the consumer is medium by commodity moving from the raw material to the costumer. It is necessary to understand consumer needs when designing the market channel. The marketing channel management role lies with marketing and sales managers. Such individuals are closely associated with representatives of networks and the rivals of the company. We are well versed in seeking useful knowledge for successful management decisions. Gathering relevant information is imperative for coordinating the marketing channel. This assists in writing accurate and comprehensive analysis of consumer profile. Most of the marketing networks are produced with one or more manufacturer-consumer intermediaries.