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Channels of Marketing
1. Individual consumers and corporate buyers are aware that thousands of goods and services are available through a very large number of diverse channel outlets. What they may not be well aware of is the fact that the channel structure, or the set of institutions, agencies, and establishments through which the product must move to get to them, can be amazingly complex.
2. Usually, institutions specializing in manufacturing, wholesaling, retailing, and many other areas join forces in marketing channel arrangements to make possible the delivery of goods to industrial users or customers and to final consumers. The same is true for the marketing of services. For example, in the case of health care delivery, hospitals, laboratories, insurance companies, and drugstores combine efforts in an organized channel arrangement to ensure the delivery of a critical service.
3. Therefore, marketing channels can be viewed as sets of interdependent organizations involved in the process of making a product or service available for use or consumption. Not only do marketing channels satisfy demand by supplying goods and services at the right place, quantity, quality, and price, but they also stimulate demand through the promotional activities of the units (e.g., retailers, manufacturers' representatives, sales offices, and wholesalers) comprising them.
4. The major focus of marketing channel management is on delivery. Producers of goods (including manufacturers of industrial and consumer goods, legislators, educational administrators and insurance companies) are individually capable of generating only form or structural utility for their «products».
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Marketing channels stimulate demand through the promotional activities of retailers, manufacturers' representatives, sales offices, and wholesalers.
Public and private goods could be available for consumption only through distribution through different marketing channels.
Legislators, educational administrators and insurance companies use the channels of marketing to distribute their products.
Marketing channel is a complex network of joined independent organizations with the purpose of delivering goods and services and increasing demand.