What is a set of interdependent Organisations involved in the process of making a product or service available for use by the consumption of consumer by business user?

A marketing channel is a set of interdependent organizations involved in the process of making a product or service available for use or consumption.

The definition bears some explication. It first points out that a marketing channel is a “set of interdependent organizations.” That is, a marketing channel is not just one firm doing its best in the market — whether that firm is a manufacturer, wholesaler, or retailer. Rather, many entities are typically involved in the business of channel marketing. Each channel member depends on the others to do their jobs.

What are their jobs? The definition makes clear that running a marketing channel is a “process.” It is not an event. Distribution frequently takes time to accomplish, and even when a sale is finally made, the relationship with the end-user is usually not over.

For example, think about an end user purchasing a microwave oven and it demands for post sale service.

Finally, what is the purpose of this process? The definition claims that it is “making a product or service available for use or consumption.” That is, the purpose of channel marketing is to satisfy the end-users in the market, be they consumers or final business buyers. Their goal is the use or consumption of the product or service being sold. A manufacturer who sells through distributors to retailers, who serve final consumers, may be tempted to think that it has generated “sales” and developed “happy customers” when its sales force successfully places a product in the distributors’ warehouses. This definition argues otherwise. It is of critical importance that all channel members focus their attention on the end-user.

Get industry recognized certification – Contact us

Marketing channel: a set of interdependent organizations that help make a product or service available foruse or consumption by the consumer or business user.Channel level: a layer of intermediaries that performs some work in bringing the product and its ownershipcloser to the final buyer.Direct marketing channel: a marketing channel that has no intermediary levels, company sells directly toconsumers (ex. Amway).Indirect marketing channel: channel containing one or more intermediary levels.Channel conflict: disagreement among marketing channel members on goals, roles, and rewards—whoshould do what and for what rewards;Horizontal conflict—occurs among firms at the same level of thechannel;Vertical conflict—conflicts between different levels of the same channel, more common.VerticalMarketing system (VMS): a distribution channel structure in which producers, wholesalers, and retailersact as a unified system, one channel member owns the others, has contracts with the, or has so much powerthat they all cooperate.conventional distribution channel—a channel consisting of one or more independent producers,wholesalers, and retailers, each a separate business seeking to maximize its own profits, even at the expenseof profits for the system as a whole.Corporate VMS: a vertical marketing system that combines successive stages of production anddistribution under single ownership—channel leadership is established through common ownership.Contractual VMS:a vertical marketing system in which independent firms at different levels of productionand distribution join together through contracts to obtain more economies or sales impact than they couldachieve alone.Franchise organization: a contractual vertical marketing system in which a channel member, called afranchisor, links several stages in the production-distribution process.Administered VMS: a vertical marketing system that coordinates successive stages of production anddistribution, not through common ownership or contractual ties, but through the size and power of one of theparties.Horizontal marketing system: a channel arrangement in which two or more companies at one level jointogether to follow a new marketing opportunity.Multichannel distribution system: a distribution system in which a single firm sets up two or moremarketing channels to reach one or more customer segments.Disintermediation: the cutting out of marketing channel intermediaries by product or service producers, orthe displacement of traditional resellers by radical new types of intermediaries.Marketing channel design: designing effective marketing channels by analyzing consumer needs, settingchannel objectives, identifying major channel alternatives, and evaluating them.

Which is a set of interdependent organizations involved in the process of making a product or service available for use of consumption by the consumer or business user?

What is set of interdependent organizations?

Which of the following is involved in the process of making a product or service available for use or consumption?

Is a business structure of interdependent organizations that are involved in the process of making a product?