A marketing channel is a set of independent organizations that deliver value by making a product available for use or consumption. It comprises intermediaries like merchants who buy and resell products, and agents who negotiate on a producer's behalf without taking title. Intermediaries carry, promote, and sell the product. Marketing channels are important because they don't just serve existing markets - they help create new markets. Channels can function via push or pull strategies and use of hybrid channels to reach different customer segments. All channels must be integrated to work together effectively without interfering with each other. Value networks are similar to marketing channels in delivering value through interconnected organizations.

1. Marketing Channels and
Value Networks

2. • A set of independent organizations created to
deliver value, i.e., to make a product available
for use or consumption.
• Comprises of intermediaries.
What is a Marketing Channel?

3. • Merchants- Buy, take title to, and resell.
• Agents- Negotiate on producer’s behalf, do
not take title to.
• Facilitators- Assist in distribution, neither take
title to, nor negotiate.
Intermediaries Involved

4. • They carry product
• They promote the product
• They sell the product
Why is the channel important?

5. Push Strategy: Pull Strategy:
-Uses promotion tools, -Uses advertising
sales force to sell. and other modes to
create demand.
-Used in case of low -Used in case of high
brand loyalty. brand loyalty.
Marketing Channels don’t just serve the market,
they make the market

7. A marketing channel can function via:

8. • Occurs when a single firm uses two or more
marketing channels to reach customer
segments.
Hybrid Channel Marketing

9. • All channels must work together and none of
them should interfere in the business of
another.
Channel Integration

10. Value Networks

11. One Example: Apple

12. Demand Chain Planning
Think of the target market
Estimate whether more money
is made upstream or
downstream
Opt for different modes to
reduce costs, and increase
accuracy
Get an idea of disturbances in
the supply chain

13. Slide No. Reference
1 www.2012books.lardbucket.org
2 www.theagencyguy.com
3 www.xitocapital.com
4 www.startups.fm
6 catalog.flatworldknowledge.com
7 www.insync.co.in
8 www.slideshare.net
9 www.ebusinessguru.co.uk
11 www.timkastelle.org
References