CHAPTER 10: MARKETING CHANNELS AND SUPPLY CHAINS MKTG 111
SEMESTER 1 | ACADEMIC YEAR 2023 - 2024 | PROF. ALEX LACHINE
CONSUMER BENEFITS FROM INTERMEDIARIES
WHAT IS A MARKETING CHANNEL Time Utility
Marketing Channel ● Having a product or service when you want it
● Consists of individuals and firms involved in Place Utility
the process of making a product or service ● Having a product or service available WHERE
available consumers want it
Intermediaries Form Utility
● Individuals or firms performing a role in the ● Involves enhancing a product or service to
marketing channel involved in making a make it more appealing to buyers
product available Information Utility
● Providing consumers with the information
they need to make an informed choice
● Websites and user manuals
Possession Utility
● Efforts by intermediaries to help buyers take
possession of a product or service such as
providing various ways for payment to be
made for a product
MARKETING CHANNELS FOR CONSUMER GOODS
FUNCTIONS PERFORMED BY INTERMEDIARIES
Transactional Function
● Intermediaries perform this function when
they buy and sell goods or services
● Risk-taking - assuming business risks in the
ownership of inventory Direct Channel
Logistical Function ● Because a producer and ultimate consumers
● Details of preparing and getting a product to deal directly with each other
buyers Indirect Channel
● Gathering, sorting, and dispersing of product ● Because intermediaries are inserted between
Facilitating Function the producer and consumers and perform
● Make a transaction easier for buyers numerous channel functions
● Financing - extending credit to customers ● Channel B - most common when the retailer is
● Marketing information and research - provide large and can buy in large quantities from a
information to customers and suppliers like producer
competitive conditions and trends
, CHAPTER 10: MARKETING CHANNELS AND SUPPLY CHAINS MKTG 111
SEMESTER 1 | ACADEMIC YEAR 2023 - 2024 | PROF. ALEX LACHINE
● Channel C - most common when the MULTIPLE CHANNELS AND STRATEGIC ALLIANCES
wholesaler sells to small retailers Dual Distribution
● Channel D - the most indirect channel, when ● An arrangement whereby firm reachers
there are many small manufacturers and different buyers by employing two or more
many small retailers and an agent is used to different types of channels from the same
helping coordinate a large supply of the basic product
product Strategic Channel Alliances
● Whereby one firm’s marketing channel is used
MARKETING CHANNELS FOR BUSINESS GOODS to sell another firms product
MULTICHANNEL MARKETING TO ONLINE
CONSUMERS
Marketplace
● Where buyers and sellers engage in
face-to-face exchange relationships in an
environment characterized by physical
facilities and mostly tangible objects
Marketspace
● Internet/web-enabled digital environment
characterized by face-to-screen exchange
relationships and electronic images and
Industrial Distributor offerings
● Performs a variety of marketing channel Multichannel Marketing
function, selling, stocking, and delivering a full ● Is the belending of different communication
product assortment and financing and delivery channels that are mutually
Agent reinforcing in building relationships with
● Someone who serves primarily as the consumers who shop and buy in the
independent selling arm of producers and traditional marketplace and in the online
represents producer to industrial users marketspace.
Cross-channel Shopper
ELECTRONIC MARKETING CHANNEL ● Who researches products online and then
Employ the internet to make goods and services purchases them at a retail store
available to consumers or business buyers ● Desire to compare products among retailers
● Need for more information
● Ease of comparing options without having to
trek multiple locations
Omni-channel retailing
● Creates a seamless experience among all
available shopping channels
SEMESTER 1 | ACADEMIC YEAR 2023 - 2024 | PROF. ALEX LACHINE
CONSUMER BENEFITS FROM INTERMEDIARIES
WHAT IS A MARKETING CHANNEL Time Utility
Marketing Channel ● Having a product or service when you want it
● Consists of individuals and firms involved in Place Utility
the process of making a product or service ● Having a product or service available WHERE
available consumers want it
Intermediaries Form Utility
● Individuals or firms performing a role in the ● Involves enhancing a product or service to
marketing channel involved in making a make it more appealing to buyers
product available Information Utility
● Providing consumers with the information
they need to make an informed choice
● Websites and user manuals
Possession Utility
● Efforts by intermediaries to help buyers take
possession of a product or service such as
providing various ways for payment to be
made for a product
MARKETING CHANNELS FOR CONSUMER GOODS
FUNCTIONS PERFORMED BY INTERMEDIARIES
Transactional Function
● Intermediaries perform this function when
they buy and sell goods or services
● Risk-taking - assuming business risks in the
ownership of inventory Direct Channel
Logistical Function ● Because a producer and ultimate consumers
● Details of preparing and getting a product to deal directly with each other
buyers Indirect Channel
● Gathering, sorting, and dispersing of product ● Because intermediaries are inserted between
Facilitating Function the producer and consumers and perform
● Make a transaction easier for buyers numerous channel functions
● Financing - extending credit to customers ● Channel B - most common when the retailer is
● Marketing information and research - provide large and can buy in large quantities from a
information to customers and suppliers like producer
competitive conditions and trends
, CHAPTER 10: MARKETING CHANNELS AND SUPPLY CHAINS MKTG 111
SEMESTER 1 | ACADEMIC YEAR 2023 - 2024 | PROF. ALEX LACHINE
● Channel C - most common when the MULTIPLE CHANNELS AND STRATEGIC ALLIANCES
wholesaler sells to small retailers Dual Distribution
● Channel D - the most indirect channel, when ● An arrangement whereby firm reachers
there are many small manufacturers and different buyers by employing two or more
many small retailers and an agent is used to different types of channels from the same
helping coordinate a large supply of the basic product
product Strategic Channel Alliances
● Whereby one firm’s marketing channel is used
MARKETING CHANNELS FOR BUSINESS GOODS to sell another firms product
MULTICHANNEL MARKETING TO ONLINE
CONSUMERS
Marketplace
● Where buyers and sellers engage in
face-to-face exchange relationships in an
environment characterized by physical
facilities and mostly tangible objects
Marketspace
● Internet/web-enabled digital environment
characterized by face-to-screen exchange
relationships and electronic images and
Industrial Distributor offerings
● Performs a variety of marketing channel Multichannel Marketing
function, selling, stocking, and delivering a full ● Is the belending of different communication
product assortment and financing and delivery channels that are mutually
Agent reinforcing in building relationships with
● Someone who serves primarily as the consumers who shop and buy in the
independent selling arm of producers and traditional marketplace and in the online
represents producer to industrial users marketspace.
Cross-channel Shopper
ELECTRONIC MARKETING CHANNEL ● Who researches products online and then
Employ the internet to make goods and services purchases them at a retail store
available to consumers or business buyers ● Desire to compare products among retailers
● Need for more information
● Ease of comparing options without having to
trek multiple locations
Omni-channel retailing
● Creates a seamless experience among all
available shopping channels
