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Seven Marketing Channels

859 Words4 Pages

Marketing Channels

Distribution system in company will be composed of 7 (seven) marketing channels:

1. Direct distribution,
2. General-line dealers,
3. Special-line dealers,
4. Support-line houses,
5. OEM dealers,
6. Sales representatives, and
7. The brokers.

Direct distribution does not use intermediaries. In use is own sales force which directly deals with the customers. Company has full responsibility for performing all the necessary channel tasks. The direct sales is approach when, (1) the customer is large, (2) the customer segment is well-defined (common also for some other channels), (3) the customer insist/expect direct sales, and (4) sales require extensive negotiations with customer's top management (also common for General-line …show more content…

The quality and performance of the intermediaries have a critical impact on achievement of company's goals.

In establishing a competitive advantage, distribution channels are of the significant importance. Each channel is designed on the basis of the buyer's needs, the buyer's purchasing behavior, and the nature of the buying process.

The need to use more than one channel arises from the differing tasks demanded either by product variety, or market …show more content…

Dealers are the most important single force in distribution channels. They are generally independent businesses serving narrow geographic markets. The critical elements of the dealer's function are (1) to have products readily available, and (2) to serve as the selling arm of the company. They perform full range of marketing functions. Some of the more importance are: (a) providing credit, (b) offering wide product assortments, (c) delivery of products, (d) servicing products (on some level - depend on

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