Directorate of distance education

Pricing in Channel Management
The desired price at which a marketer seeks to sell their product 
can impact how they choose to distribute. As previously mentioned, the 
inclusion of resellers in a marketer’s distribution strategy may affect a 
product’s pricing since each member of the channel seeks to make a profit 
for their contribution to the sale of the product. If too many channel 
members are involved the eventual selling price may be too high to meet 
sales targets in which case the marketer may explore other distribution 
options.
The one element of marketing strategy that is malleable, but is least 
understood and hence constantly feared by many managers is pricing. This 
is because pricing is a very complex issue. On one hand, it is supposed to 
reflect all the strategic steps the company has taken to bring the product to 
the consumer and convince him/her to buy it as well. On the other hand, 
it is supposed to reflect what the consumer would get out of the product 
by paying that price to acquire it. Will there be a match between the two? 
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Perhaps and perhaps not! This dilemma makes it imperative for a manager 
to understand and analyze the various factors before deciding at an 
appropriate pricing strategy. And, pricing does not operate in vacuum. It 
has to be married with other elements of the marketing strategy, including 
the channel management. Thus, understanding the broader picture of 
the various elements of pricing, and building a scientific framework on 
pricing will always be reliable and better in the long run. 
➢ Cost
➢ Market
➢ Competition 
➢ Channels
Promotion through the Channel
➢ Pull Promotional Strategy
➢ Push Promotional Strategy
Pull Strategy for Sales Promotion
Sales promotion decisions are significantly affected by whether 
the company decides to do “