Marketing channels and intermediaries Essay
Marketing channels and intermediaries are necessary for a number of reasons. The most important function of a marketing channel is to provide a way of getting products from a vendor or supplier to the end consumer. An intermediary is something like a wholesaler or an agent who acts as a middleman between the producer and the consumer and their primary function is to move products to a higher value that the consumer will pay.
Channel arrangements need to be modified over time because of the way markets and products move and are developed and brought to a market. Channel conflict happens when producers try and bring their products to market themselves, by direct marketing or some other style of marketing that does not use an intermediary. Some types and sources of channel conflict include a shift towards ecommerce, and the fact that many businesses now market and deliver their offerings to the market through the internet, which they can manage themselves.
Some of the ethical considerations in channel relations are based around the relationships that are built up between suppliers and sellers that can be damaged if the producer thinks they are able to market the product internally and bring it to
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Technology has taken a bigger role in market logistics recently due to a number of factors including software that can help all aspects of the business unit and link reporting, supply/demand statistics, accounting processes as well as other aspects of the business which can be covered by HRM software such as PeopleSoft. Some examples of technology improving market logistics include this PeopleSoft software.
It covers the management of every aspect of the business and can help with efficiency between every department and business unit. Some factors that companies who wish to enter a foreign market need to consider are based around the location of the target market, as well as the religion of the target market and other unique cultural aspects that may need some thought. Consideration should be given to different areas when setting up a market program for another country.
These include such issues as differences in culture, perception and religion, which can cause offence if they are handled badly by the marketing department. The most important thing to consider in new product development is the entire process of developing a suitable and reliable solution to fill whatever gap there is in a market. The physical development is important to consider as it deals with the function of the product. The marketing of this product needs to be developed as well, in order to sell the product.
It is important to evaluate the new product idea at every stage, as the product, by definition is new and therefore has never been marketed, or brought to market successfully. Marketers can best promote consumer adoption of a new product by making this product fit with consumers needs and wants, and how the competition are working to fulfill these requirements. Things to be considered when developing an advertising strategy for promotion of a new product can include a market assessment, a value study, a financial analysis and many other kinds of analysis.
An advertising campaign that has been successful is Nike, and the “Just do it” campaign. This has been endorsed by professional athletes for years, and is very simple and striking to the audience. An advertising campaign that has not been successful could be any campaign that people have never heard of, so then by definition it is not successful. Direct marketing is an area of marketing that brings the promotion of a product to the end consumer directly, and at a low cost.
It is a type of marketing, and is effective when it is used to promote products that can be easily market directly. Interactive marketing is slightly different to direct marketing as the process engages the consumer in a form of dialogue and remembers the outcome of each engagement. In order to run a successful marketing campaign, many different types of marketing are needed meaning there is no direct choice between one and the other of these strategies.