MARKETING PLAN EXPLORER

Copyright 2002, Professor Jerome M. Katrichis

 

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V. GENERATION OF ALTERNATIVE MARKETING PLANS

B. 4. A. Distribution Channels

 This section proposes changes to the organization's number or selection of marketing channels.

 A marketing channel is defined as the set of independent yet interdependent institutions involved in the process of making a product or service available for use or consumption.  A marketing channel typically includes the organizations that are actively involved in the transfer of ownership of the product or service and are distinct from the physical distribution aspects of the product or service.  That is, organizations such as transportation and insurance companies are thought of as "facilitating" organizations and are not usually considered part of the actual channel.

 When organizations are attempting to reach multiple target markets, multiple channels of distribution may be employed.

 The number of levels in a marketing channel always include the producer and the final end user or consumer, so the shortest possible channel becomes a two level channel.

 

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