Marketing Channels and Retail Supply on US Market

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Different companies use different marketing methods and techniques to boost their sales. The marketing basically creates awareness among the people about the product that product is available in the market for the end users. After the production, when the product reached to its finished good. Then the companies adopt different strategies to dispatch the product. Companies never directly approach to the market to sell their product or services. There are some intermediaries performing different functions.

“Marketing channel are sets of interdependent organizations involved in the process of marketing a product or services available for use or consumption. They are the set of path ways a product or service follows after production, culminating in purchase and use by the final end user.”

Marketing Channel involve different intermediaries which takes product from the warehouse to the market to resell them in the market i.e. retailers, wholesalers, and distributors. Apart from them, there are agents. Agents personally approach to people, other words they act as a producer. He negotiates with them and makes them to buy the product. Other marketing channels help to “assist in the distribution process but neither take title to goods nor negotiate purchase or sales; they are called facilitators” (kotler et al 2006). Proper marketing channel ensures that the product is reaching to its proper place and in right hands. Marketing can be direct from producer to the consumers or it can be intermediaries involve in the process. “The physical distribution structure that moves a product from the manufacturer to the consumer or user and the marketing structure that is established as a part of the channel of distribution to ensure the manufacturer that all marketing objectives are accomplished”.

According to Russell during marketing channels, different actions are evolving. Those actions are commonly present in every marketing process. They are: Communication: The interaction with the people during marking refers as a communication. It can be mailing, phoning, interacting with the individuals during selling the product. Through better communication producer can come to the evaluation that his product can do better in the market and will provide profit in the future. “Channel communications are a two-way system, with information also flowing from the user all the way back to the manufacturer”; Selling: Selling is the most important part of marketing channel. Firms are just producing the products in order to sell them and gain their profits. Selling the product is the basic motive of every producer. From the producer till the seller all are involve in this process; Storing: the finished goods have to be transfer to the safe or public place from where wholesalers or distributors dispatch the product. The companies mostly hire warehouses or stores where they store the product through transportation or shipping. “Shipping and storing of products take place at every level of the channel, with the general exception of the user. In some specific situations, product handling, transporting, and storage may also be performed by users of industrial products”; Customer Services: from the last few years companies totally changes their hierarchy. The main top level of hierarchy consists of valued-customers. Mostly the companies’ first priority is to satisfy their customers at any level.

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”.

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: 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. 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.

Information about the Author: Robert Smith was born in New York in 1956. He has spent more than 12 years working as a professor at New York University. He is always fond of helping students with academic writing. Now he spends most of his time with his family and shares his experience where to find cheap custom term papers and customized essays about life. Management Articles: http://www.article-buzz.com

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