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Channels can help a business attract and keep customers.
Channels can be used to compensate for weaknesses in the marketing mix (competing against
bigger companies with a higher marketing budget)
Channels can be used to differentiate a brand.
Channels can be used to build brand loyalty
Step by step process to determine the right channels for your business:
1) Define Realistic channel range
2) Calculate channel economics
3) Guide customers to the channels
4) Touch customers at each point
5) Mitigate channel conflict
6) Evolve shannel strategy
The objective of channels is to make products available when, where and in the quantities that
customers want and need them at a minim cost. Channels should provide utility and increase efficiency
Direct: face to face sales, telemarketing, etc
Indirect: with intermediaries like retailers
Choosing a distribution system:
Conventional marketing system: members work independently
Vertical Marketing System: Formal cooperation among channel members
- Types include administered, corporate and contractual
Horizontal marketing system: Two or more firms at the same channel level agree to work
Intensive: selling through all suitable wholesalers or retailers.
Selective: using fewer outlets than intensive but more than exclusive distribution
Exclusive: selling through only a single outlet in a region
How to communicate a message:
1) Start with making the intended message
2) Encode the message
3) Select the message channel
4) Target evaluates the message
5) Message as received by target
6) Target responds