Question

Describe the marketing channel options and how to make channel decisions. When is the best time for a channel option?

Answer 1

Marketing channels brings buyers and sellers together and make efforts to produce all the available products to customers, it creates awareness and helps to get profits and it helps to reduce cost consuming aspect, it promotes a product. It helps to get feedback from customers and use it in a systematic manner as and when required. Marketing channels include a unique combination of producer, retailer, Wholesaler, consumer.

The following are different channels:

1. Manufacturer to customer:

The manufacturer directly sells. the goods to customers without taking any help from third parties such as wholesalers, retailers etc.,

2. Manufacturer to retailer to customer:

The retailers buy goods from manufacturers and the retailers sells goods to customers, here the third-party help is required.

3. Manufacturer to wholesaler to customer:

The wholesaler brings goods in bulk quantity from manufacturers and sells them to customers at low price.

4. Manufacturer to agent to wholesaler to retailer to customer:

Here agent is called as middleman and helps in sale of goods, and agent receives commission after the sale of goods. Agents are chosen when the product is new and to make fast movement of it in society.

The best time for a channel option is:

• If it is for manufacturer to customer – day to day marketing is preferable. Example: house to house selling etc. every time is best for this channel if you want to opt.
• If it is for Manufacturer to retailer to customer – Selling goods when required as per the customer choice Example: Shops, the best time to opt this is when you want to start a full-time business.
• If it is Manufacturer to wholesaler to customer – The best time to opt this channel is when you want to enlarge your business little larger and earn some profits by selling more quantity of goods with good quality, for example: super markets.,
• If it is Manufacturer to agent to wholesaler to retailer to customer – the best time to opt this channel is when the product is very new to the market and then few promotions are needed, then you can use agent for quick responses and to get to know the feedback.