Marketing channel functions - 8 points

 

Marketing Channel Functions

               Not only the marketing channel performs many tasks but the members in the marketing channel perform a number of functions and participate in the flow of marketing.

Let us discuss these functions in great detail 

1) Information Provider

                Since middlemen are close to the customer they can provide information about market like entry of new competitor, changes in cust -omer preferences and demography are some of information that all manufacturers want. They can provide this at no additional cost.

 2) Price Stability

             Many a time the middleman observe an increase in the price of the products and continue to charge the customer the same old price. This is because of the intra - middlemen competition. The middleman also maintains the price stability by keeping his overhead low.

 3) Promotion

                          The middleman also promote the product or products at his territory. Many of them design their own sales incentive programs aimed at building customers traffic at the other outlets.

 4) Financing

                Middlemen finance manuf -acturers operation by providing the necessary capital in the form of advance payment for goods and services.

 5) Title 

                   Most middlemen take the title to the goods or services and trade in their own name. This helps in diffusing the risk between the manufacturer and the middleman. This also helps them to meet customer demand.

6) Help in Production function 

                              The producer can concentrate on production function leaving the marketing problem to middle man who specialise in the profession. Their services can best utilised for selling the product.

7) Pricing 

                   In pricing ,the producer should invite the suggestions from the middle men who are very close to the customers and know what they can pay for the product.

8) Matching buyers and sellers

                 Normally most sellers do not know where they can reach potential buyers and similarly buyers do not know where they can reach potential sellers. From this perspective the role of marketing channel to match the buyers and sellers needs becomes very vital.

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