Marketing Channels

Marketing channel is the process that involves different individuals at a same time. This system is assigned by the company and effective marketing channel system reflects the good decision-making power of the manager. Around the world companies are paying a high salary to the marketing managers. “In the United States, channel members collectively earn margins that account for 30 to 50 percent of the ultimate selling price” (kotler et al 2006).
Marketing channel is a process that involves very high cost. All over the world big companies are spending millions and billions on their marking. Like Nike, dell, Mc donalds. Cost of marketing depends on type of marketing channel the companies are adopting. The lowest cost of marketing is on the internet.
There are two main types of marking strategies that companies cater while adopting marketing channel. The strategies are:
1. Push Strategy: involves when the producer advertise, market it products to create awareness among the people about the product. Push strategy works on the places where there is low brand loyalty and mostly they are impulse items or everyday product.
2. Pull Strategy: involve where customers are highly brand loyal and ask for the product. In this scenario the product advertise it product in such a manner that intermediaries crave to buy it from the producer.
When the company jumps into the market as a new firm, it uses the direct selling strategy to market it product. Because the market is limited and the people are not aware of the company. The middlemen already exist in every market like wholesalers, retailers and distributors.
Choosing best channel is not a problem for the firm but to offer the middlemen to be a part of an organization and handle the firm’s line is a great problem for the company. (kotler et al 2006).
Gradually if the company started moving better in the market it will exaggerate it marketing channel and will use retailers for small markets, distributors for large markets.
Different companies are using multiple ways to market the product. Now a day’s companies are also using hybrid channels. Hybrid channel is a new way of doing business. If companies are going towards this channel it should keep a track to watch that channels are working properly together and “match each target customer preferred ways of doing business”. (kotler et al 2006).
Channel integration is one of the other ways which the customer wants from the companies to offer that. Featuring:
• The customer can use the internet to buy the product and he can easily hold the product from the company’s nearest retail outlet.
• If the customer wouldn’t like the product or want to exchange the product, he can conveniently do that through nearest retail store.
• Customers want to get discounts on whatever product they buy.
People mostly shop on the big stores and want to buy a better product. Retailers are the organizations. They want to fulfill the needs of the consumers. The major retail types are:
Specialty stores, departmental stores, superstores, convenience stores, discount stores, off-price retailers, super markets, and catalog showrooms. The retail stores took a long period to get into the phase of maturity.

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Robert Smith has spent more than 15 years working as a professor at New York University. He is interested in helping students and people who need assistance in writing. Now he spends most of his time with his family and shares his Univesity experience in writing high school essays and school essays online.

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