The Influence of Marketing Channels on the Marketing Mix - Essay Example

The Influence of Marketing Channels on the Marketing Mix Marketing mix is essentially a grouping and integration of marketing inputs into a products and service mix, a distribution mix, and a communications mix. This mix is designed to meet the requirements of specific marketing segments or to develop a customer-prospect mix. Favorable purchasing reaction helps to achieve company goals. The marketing channel includes every aspect of business, from the product concept to the guarantee of its value or usefulness.

There are two essential parts of a marketing channel namely the physical distribution structure which moves a product from the manufacturer to the consumer, and the marketing structure which is meant to ensure achievement of marketing objectives.When a manufacturer designs a product to offer to the market (goods or services) he/she will consider first what are the customer needs to be addressed, what benefits will satisfy these needs and thus what features the product design should contain so as to deliver these benefits.

The good manufacturer will employ this process of product definition, in the order above. Manufacturers stand at the top of the supply chain and can use a variety of sales, marketing, and physical distribution systems to connect their products with customers.Since the marketing channel is such a comprehensive concept which forms the relationship between the manufacturer, the distributor and the consumer, every aspect of the marketing channel affects the products or services mix, the distribution mix, or the communications mix.

How intensity of distribution and logistics affect the choice of a distribution systemSuppliers and distributors have a great influence on the success of a firm. Distribution issues come into play heavily in deciding brand level strategies. In order to maintain one's brand image, it may be essential that retailers and other channel members provide certain services such as warranty repairs and carrying a large assortment of accessories. Since not all retailers are willing to provide these services, insisting on them will likely reduce the intensity of distribution given to that product.

A firm's distribution objectives will ultimately be highly related. Some objectives promote each other, while others tend to compete. More exclusive and higher service distribution generally entails less intensity and lesser reach. Cost has to be traded off against speed of delivery and intensity. For example, it is much more expensive to have a product available in a convenience store than in supermarkets. The extent to which a firm should choose between exclusive and intensive distribution depends on a number of factors.

One issue is the consumer's likelihood of switching and willingness to search. For example, most consumers will switch soft drink brands rather than walking from a vending machine to a convenience store several blocks away, so intensity of distribution is essential here. However, for sewing machines, consumers will expect to travel at least to a department or discount store, and premium brands may have more credibility if they are carried only in full service specialty stores. Retailers involved in a more exclusive distribution arrangement are likely to be more loyal to the product.

Distribution intensity decisions and the choice of a distribution system depend on a realistic approach as to what is available to a particular firm based on the product being distributed. There is no fixed strategy which can be followed by each firm.