1. The definition:
A marketing channel system is a particular set of interdependent organizations involved in the process of making a product or service available for use or consumption.
2. Classification of marketing channel
• Multichannel marketing: Using two or more marketing channels to reach customer segments in one market area.
• Omnichannel marketing
• Integrated marketing channel system
3. The digital channels revolution
• Customer support in-store/online/phone
• Check online for product availability at local stores
• Order product online to pick up at the store
• Return a product purchased online to a nearby store
4. Channel member functions :
• Gather information
• Develop and disseminate persuasive communications
• Reach agreements on price and terms
• Acquire funds to finance inventories
• Assume risks
• Provide for storage
• Provide for buyers’ payment of their bills
• Oversee actual transfer of ownership
5. The process of channel decisions
5.1 Analyzing customer needs and wants.
• Desired lot size
• Waiting and delivery time
• Spatial convenience
• Product variety
• Service backup
5.2 Establishing objectives and constraints
5.3 Identifying major channel alternatives
• Types of intermediaries
• Number of intermediaries
• Terms/responsibilities of channel members
