I. Please list the five marketing flows in the Marketing Channel and briefly describe how each flow works using figure 12.1 as a reference. (7.5 points)
II. Please list and describe the three types of intermediaries in the marketing channel. (4.5points)
III. Please list and describe the three strategies that marketing channel can use based on the number of intermediaries. (4.5 points)
IV. Please decide which distribution intensity level—intensive, selective, or exclusive—is used for the following products, and explain why. -Piaget watches M & M’s Special edition Barbie dolls Crest toothpaste
Step No: 1
I. The idea of flow is one conventional paradigm that has been used to describe the channel mechanism. It displays the numerous connections that bind channel participants and other organizations in the transfer of commodities and services. There are five significant flows from the channel manager’s perspective:
1. Product flow
2. Negotiation flow
3. Ownership flow
4. Information flow
5. Promotion flow
The “product flow” is the movement of the physical product from the producer via all parties that assume physical custody of it until it reaches the end client. The negotiation flow includes the institutions participating in the actual exchange procedures. The ownership flow shows the system’s flow of title. The participants in the upstream and downstream flow of information are listed in the information flow1. The promotion flow is the movement of persuading communication in the forms of advertising, personal selling, sales promotion, and public relations.
II. Direct-to-consumer sales, retailers, and wholesalers are the three distinct types of distribution channels. Companies known as wholesalers function as middlemen, purchasing huge quantities of products from producers and reselling them to retailers or, sometimes, to end users. Retailers are generally clients of wholesalers and offer high-touch customer service to end consumers. And last, direct-to-consumer sales happen when a manufacturer deals directly with a customer, such as when an e-commerce platform is employed.
III. Businesses are required by channel strategy marketing to consider a variety of aspects, including consumer behavior, the competing brand environment, and others. It’s important to keep in mind that some channels may not be suitable for every organization or brand. Finding the ideal mix of delivery channels is crucial since most businesses can only use a limited amount of resources. The following suggestions for enhancing a channel plan template are frequent.
1. eCommerce or retail
Retail comprises either building nearby physical locations that customers can visit or developing a website via which people can purchase your products and services. It may be one of the more conventional marketing channel plan possibilities. For a two-factor strategy, many contemporary organizations increasingly mix their eCommerce and retail activities. For example, although local retailers can benefit from more assistance from eCommerce channels, retail locations can give greater customer service for orders placed online.
2. SEM and online sales
Search engine marketing and SEO are now typical elements of a successful marketing channel plan for businesses that sell to consumers and other brands directly. To draw attention to your business, “SEM,” or search engine marketing, combines pay-per-click marketing and search engine optimization. Instead of interacting directly with consumers or partners, SEM and SEO are all about bringing a brand in front of its customers by
utilizing digital platforms.
3. Partners in marketing and PR
Working with partners is one of the greatest methods to update your marketing channel plan when you’re new to an industry or specialty and want to increase brand exposure. Marketing partners, brand ambassadors, and even PR partners may promote your business by getting media exposure from a variety of sources. It will be simpler to contact clients with the more partners you develop in the appropriate settings.