WHAT IS MARKETING

CHANNEL AND VALUE

NETWORK ?

CHAPTER : 14

MARKETING CHANNEL

A marketing channel is a set of interdependent organizations participating in the process of making a product or service available for use.

DIFFERENT FORMS OF INTERMEDIARIES

AGENTS: Search for customers, negotiates for producer but do not take title to goods.MERCHANTS: Buy, take title to and resell the merchandise.FACILITATORS: Assist in the distribution process.

is the particular set of marketing channels a firm

employs

SIGNIFICANCE OF CHANNELS

CON VERTS POTENTIAL BUYERS INTO PROFITABLE CUSTOMERS

MAKE MARKET

MULTICHANNEL MARKETING

Is the scenario when a single firm uses two or more marketing channel

to reach

what follows

i.e. customer segments

VALUE NETWORK

A system of partnerships and alliance that a firm creates to source, augmentand deliver it’s offering.

Supplier’s Supplier Company it’s immediate customer

Supplier Final Dealer Customer

A company needs

to orchestrate

these parties in

order to deliver

superior value to

the Target Market

This surely shows how well partnership needs to be maintained

Apple’s Developers keep

70 % of revenue

while

30 % goes to apple

DISCLAIMERCreated by

Khushi Sahu,

IIT BHU,during an internship by

Prof. Sameer Mathur, IIM Lucknow.

www.IIMinternship.com