Delivering Customer Value
Introduction
Marketing channel is the trail through which services and goods gets to where the consumers need them. It is the route followed by a commodity which is usually channeled from the producers to the consumers. It is worth noting that there are three types of distribution channels. They include zero level, two level and multiple levels distribution channels. Of note is that, in zero level distribution channels, no intermediary is involved while in one level intermediary, one middleman is involved. In this regard, marketing channel can be direct or indirect but it depends on the value it offers to the producer, middlemen and the customers.
However, there are several factors that marketers put into consideration when selecting the ideal marketing channel for a particular product. These factors include customers’ characteristic whereby the channel analyst considers the market size, geographical dispersion of the targeted consumers and more importantly the buying habits of consumers. In this regard, the channel analyst should consider the logistic problems. For instance, for consumers who are scattered in different geographical regions, a multiple level marketing channel would be more appropriate.
Another significant factor is product characteristics whereby the producer should consider the perishability of the product, category of the product and whether a product is an industrial product or a household product. For example, if a product is highly perishable, it is important that a direct channel is utilized. Other factors include company characteristics whereby the channel analysts evaluate the objectives and goals of the company, product mix and the company’s financial status. Middlemen characteristics, competitive characteristics and environmental characteristics are also major aspects that channel analyst should look into before determining which channel of marketing to utilize for specific products.
For instance, I have newly introduced household furniture that I wish to sell to the willing consumers. In order to successfully sell these items to the willing consumers, I am required to seek for strategies through which the product gets to the consumers while maintaining a high level of profits. Before then, I need to recognize the value perception that my target consumers have on my products. It is important to note that the perception of customers include their key expectations against the tangible experiences. From this perspective, value pathway tracking is crucial as it helps in determining the re-purchase intention.
With bulky products like furniture, I will be required to engage an understanding of logistic problems which may affect buying patterns and profitability. Analyzing my target customers will be the first consideration since it helps in determining the location and the type of marketing channel to utilize. With furniture and proximity of my target customers, a one level marketing channel is ideal since it is less expensive in the sense that it only involves one middleman. The one level middlemen will help in getting the products to the target customers and at the same time reduce sales contact. Additionally, middlemen stimulate demand. This is because they are also business oriented people and they are in business to make profits. Therefore, with one level middleman, I believe that my product will reach the target market and considerable profits will be realized.
As a matter of fact, middlemen have close contacts with the customers and in this regard, they will help in offering crucial information that will help in positioning my products. They also help in determining the buying patterns of consumers and at the same time offer information on competitors’ activities. This aspect will help me in looking for strategies that will help me remain competitive in the market. With newly introduced furniture, I would go for a selective distribution channel since I consider my product to be a specialty good. I also do not intend to lower the prestige of the new furniture through allowing several outlets to carry the new brand.
Conclusion
Marketing channels is a crucial aspect in marketing as it helps in getting good to that target customers. However, they are several factors to consider before deciding on what marketing channel is appropriate for particular products. Particularly, there are both direct and indirect marketing channels which are determined by the value they offer to the producers, middlemen and to the customers.
