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Events: Events are the conditions which must exist for the process to be performed. It is something that happens as opposed to something that is done on purpose. It can think of as the effect which occurs after sufficient cause is provided. Each process starts and ends with an event. Tasks: A task is the […]
The Purpose, Scope and Value of a Six Sigma Project
Before the Project Begins Six Sigma projects are meant to make the organization efficient. It is for this reason that one must ensure that the projects are efficient in themselves. One of the main criteria for a project to be efficient is that it must have well defined goals. Only once the goals are defined […]
Business Process Improvement – A Perspective
Development of Global Business Organizations, Multi National Corporations and the Corporate has always found a lot of academicians as well as the think tanks and Management Experts taking interest in analyzing the past, the present trends and prophesying the future trends. The study of growth of trade, the industries and the Organizations and the various […]
Demonetization and Its Impact on the Indian Economy
The Indian Economy which was billed as the “fastest growing major economy” in the world and the “only bright spot” among Emerging Markets seems to have slowed down even before the latest “shock therapy” of “demonetization”. Indeed, the recently released growth figures from the CSO or the Central Statistical Office considered to be the official […]
Building Knowledge-Driven Decision Support System and Mining Data
“Knowledge should be shared. It only grows by sharing.” This phrase finds its importance in today’s highly competitive and economically turbulent business world. Unless knowledge is shared among employees, it doesn’t take an organization anywhere. It’s important to share and manage it, in order to foster innovative thinking, develop and train employees and evolve into […]
The last two decades have changed the way business is getting conducted. Some businesses are still using traditional channel systems but advent of the Internet has revolutionized distribution channels. Companies are changing business models to leverage Internet advantage.
With open proliferation of information, customer expectations are reaching new heights. Companies need to figure out the right channel mix with multi channels’ strategies. From a manager stand point marketing channel is defined as any external agencies, which facilitate distribution of products and services.
The marketing channel is one of the key drivers for strategies around the marketing mix, i.e. product, price, place and promotion.
The channel flow is a flow which relates different agencies involved in the distribution of goods and products.
The channel structure is referred to as the combination of different channel members in achieving organization’s marketing mix strategy.
The marketing channel consists of various players like manufacturers, producers, wholesalers and retailers. Manufacturers and producers develop their own marketing channel to reach the end user. However, not all manufacturers have the expertise in managing channel participants. Therefore, they need wholesalers and retailers for distribution of goods.
There are three types of wholesalers; merchant wholesalers, agents and producer’s branch offices. Merchant wholesalers usually have good capacity of storing and managing goods. In contrast, agent works as middlemen for producers and end users. Retailers are responsible for selling goods and products to end users.
The major role of channel participants is to make the distribution and selling of goods and products efficient. Intermediaries provide manufactures opportunities which for them financially would not be feasible. Intermediaries provide greater market exposure, market intelligence, economies of scale and operational knowledge.
Conflict among channel partners adversely affects the distribution of goods and products. It is important for the channel managers to understand the nature of conflict and come with solution, which strengthens the distribution network.
However, all issues in the channel cannot be considered as a conflict. The channel manager needs to assess the frequency of disagreement, level of disagreement and importance of issue.
The top reasons for an emergence of conflict among channel partners are as follows:
Conflict between the channel partners can be resolved by improving communication among themselves and also with producer. Another way of solving conflict is by directing all channels to a single objective of creating customer delight.
Multi channel marketing system has become a prominent way through which goods and products are delivered to end users. The multi channel system enables the companies to deliver goods and products to end users as per their preference. The delivery of goods can be through store, website, mail order, etc.
Another innovation in the marketing channel system is the franchise. Franchise enables brand recognition, standardization of operation structure, access to learning curve and less financial investment.
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Communication Systems and Groupware – Information System Concepts that Apply in All Functional Areas of Business
February 12, 2025
