Types of Channels in Marketing

2) Explain the role of channel intermediaries in the product distribution process. Why is their role important?

a. Contracts executed by the parties normally include provisions that clearly specify the enforceable rights regarding goods or services to be provided and received by the parties, the consideration to be exchanged, and the manner and terms of settlement.

Decision Making. Company S can motivate scooter dealerships as intermediaries by involving them in the decision making process. Company S is the producer, so the company should include the dealership in any decision regarding how the product is distributed to their stores, or to the customers. An advantage is the dealership feels a strong sense of ownership in the sales results or responsibility to the company. Another advantage would be that Company S would have a closer involvement with consumer preferences or needs, allowing the company to make better decisions and possibly save money. A disadvantage for Company S would be the exposure to the competition. Company S would be revealing confidential information to dealerships that have previous ties with the competition. There are documents to help protect Company S from a dealership leaking information to the competition, but that does not mean it won’t happen; and once the information is out, it cannot be undone.

As mentioned in an earlier assignment, there are three main types of distribution channels. The first is the channel that goes from the producer, then to the wholesaler, then to the retailer or sells to the consumer. The second channel starts with the producer who sells straight to the retailer, who then sells to the consumer. The third channel goes directly from the producer to the consumer. Channels one and two are classed as indirect marketing channels, whereas channel three is a direct marketing channel as it goes straight from producer to consumer.

Distribution channels are organized in several ways: conventional, vertical, horizontal and multichannel (Kern R. 2013). Some of these organizational methods are more structured than others. When a distribution channel deals with more than one independent producer, such as wholesalers and retailers, the channel is known as a conventional distribution channel. (Kern R. 2013) These channels are not normally known to be strong and typically don’t give the customer the quality of product that they deserve. In a vertical marketing system, the retailers, wholesalers and producers, join forces to create a unified front, promoting an individual product (Kern R. 2013). Vertical distribution channels are stronger than the conventional distribution channels because all of the companies involved carry some of the load of power. (Kern R. 2013) In a horizontal distribution channel, companies join up and combine all of their finances and resources, in order to take on more than one company or product (Kern R. 2013). A multichannel distribution channel is where a large corporation uses two or more marketing channels to better target their desired customer segments (Kern R.

Pricing is a relevant issue in procurement at all levels. Individuals purchasing the commodities of an organization should receive clarity on pricing. There is confusion in this

The Client hereby engages the Provider to provide services described herein under “Scope and Manner of Services.” The Provider hereby agrees to provide the Client with such services in exchange for consideration described herein under “Payment for Services Rendered.”

|  managerial approach of seller, capacity of seller to do the work, and ability of seller to make a reasonable make-or-buy decision.

credit and payment policies as opposed to sales agents who do not purchase the merchandise and

The company sells its products through two separate channels of distribution. Each is treated as a

4. Article 2 of the UCC determines the rights of the seller, the buyer, and third

There are some important issues to consider when dealing with intermediaries on an exporting process: First of all the company would need to identify the appropriate commission structure for compensating intermediaries, which sometimes might lead

The company sells its products through two separate channels of distribution. Each is treated as a

The organisation that provides the product or service, including any mission statements, visions or goals.

This has proved to be a very successful tactic for companies in marketing. Marketing channels are also used by companies to reach their consumers. They use three types of marketing channels which are communications, distribution and service channels. Communications is important to get the company's message out to the public and this could be in many forms such as the radio, television, the internet, posters and the like. They also need to distribute their products to the consumer and this means they will need a physical location like a store, or be a wholesaler and have others retail your products for you and also sell your products on the internet. Service channels are needed to effect transactions with the consumers and these could be banks for credit card purchases and transportation companies such as UPS to deliver the products to homes and businesses.