The requirements of institu­tional buyers are very different from individual buyers. There are several middlemen’s who are involved in the distribution system of businesses. Here, there are two intermediaries in between the manufacturer and the final consumers; typically a wholesaler and a retailer. But, in such cases, problems such as the distribution staff forming unions, increase in the cost of maintaining infrastructure, and wage rise, might hamper the organization. Promotion – Persuasive communication is disseminated through the channels to the customers. The factors motivating horizontal integration are rapidly changing markets, racing competition, swift pace of technology, excess capacity, seasonal and cyclical changes in consumer demand and the risks involved in accepting financial risks single-handedly. There is no need for currency notes and coins in this method. For making the cues stronger, the emphasis is usually on advertising through the media. If companies want better control, they can go for direct distribution. I will also discuss what has been done by the company over the past few months and the successful approaches that has been used. Furthermore, due to the importance of globalization, we will learn different growth strategies, the type of retail channels that can be used and of course, the importance of the online retailing with the e and n-commerce. A marketing channel is the series of interdependent marketing institutions that facilitate transfer of title to a product as it moves from producer to ultimate consumer or industrial user. The government has restrictions on the distribution of a num­ber of products, like coal, paper, fertilizer and sugar. All goods go through channels of distribution, and marketing depends on the way goods are distributed. The cue gives him the idea that the soft drink (goal) will quench his thirst. The social media in this case refer to varied modern channels of communication and transport in the world. During a period of inflation, cost reduction becomes a paramount task and a company may have to phase out C-class markets (i.e., markets having a very low sales volume). A product like Bul-worker, which is distributed through mail-order, comes closer to being a yellow good. A channel comprises several intermediaries. There are three types of Contractual VMS: a. The sign-board of a soft drink may be a cue for the person driven by thirst. Because the use of intermediaries bring greater efficiency in making goods available to target markets. Second, why are Marketing Channels important? Marketing can be defined as a planning process and an activity carried accordingly to offer the client, product and services by carrying out marketing mix to achieve organisational and personal goals (Groucutt & Hopkins, 2015). g. Channel of distribution for services – Generally services differ from physical goods in the sense that they are intangible and hence distribution of services poses special challenges. Each intermediary moves the product one step further towards the final consumer, and as such, each intermediary forms a level of the channel. Distribution Channels and Logistics Management Strength and weakness of intermediaries. The route that the product takes on its way from production to the consumer is important because a marketer must decide which route or channel is … Aspinwall has given a color classification to products, based on their rating on five factors, which greatly helps us in deciding on the length of the channel for different product categories. Publication date: 1 February 1976. A zero level channel – As the name suggests, in this type of a channel, there are no intermediaries or zero level of intermediaries. (a) Manufacturer – Dealer – Consumer – 1 Level, (b) Manufacturer – Franchisee – Consumer – 1 Level. (a) Manufacturer – C&F Agent – Stockist – Retailer-Consumers – 3 Levels, 5. Attention. In managing its intermediaries, the firm must decide how much effort to devote to push versus pull marketing. 2. Example- teleshopping network, Proactive acne kit, etc. However, small manufacturers can take help of agents to sell in geographically dispersed markets. Thus the concept of marketing channels is not restricted to the physical goods only. Marketing Channels – What are Marketing Channels? 3. 2. Mobile phone producers compete to provide the best product to the market and in the process gain a large market share. One level channel – This type of a channel comprises of only one selling intermediary such as a retailer. For Example Javed Habib give franchise of his flagship brand HABIB on contractual basis. Introduction A marketing channel consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users. This is developed in such a manner that the co-ordination of marketing activities is achieved by using the programs of one or few firms. Effective communication plays an important role in business to inform and influence behavior.