Marketing: Mix and Channel Strategy

Marketing: Mix and Channel Strategy

Copyright: © 2020 |Pages: 34
DOI: 10.4018/978-1-5225-9981-4.ch009
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This chapter primarily deals with the relationship between the marketing mix and the channel strategy of the companies. The distribution system is influenced by product, price, and promotion of the brand. The choice of the distribution system also influences the product, price, and promotion strategy of the brand. The chapter will discuss in detail how each of the factors of product, price, and promotion are correlated with the channel strategy of the company. It is seen that the product along with the market determines the distribution strategy and the channel choices and strategies are influenced by the stage of the product life cycle. Pricing has always been a very important aspect of marketing a product. It assumes more importance as the price of the product also goes on to influence the margins of the intermediaries. It can be easily understood that the margins on a product impacts upon the commitment of the intermediaries or channel members. This in turn influences the willingness of the channel members to push the brand or the product to their customers. The channel members also expect a lot of support from the company in terms of advertisements or other consumer or trade promotion schemes. The quantum of support is dependent on the capacity of the company and the type of product and market they are operating in. This chapter also discusses about the franchise system and the electronic channel system which are now part of the channel strategy of almost all large companies. The characteristics of these channels along with their advantages and disadvantages are also discussed in detail.
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Learning Objectives:

  • Relationship between Marketing – Mix and Channel Strategy

  • Channel Strategy related to Product Issues

  • Channel Strategy related to Pricing Issues

  • Channel Strategy related to Promotion Issues

  • Franchise System as a part of Channel Strategy

  • Electronic Marketing Channels as a part of Channel Strategy

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