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Logistics & Supply Chain Management ( PDFDrive )

Sales/Marketing Programs
. Design support programs for your 
channel that meet their needs, not what your idea of their needs are. 
To do this, you should start by asking your customers within this 
segment, “how can we best support you in the selling and marketing 
of our products?” That being said, the standard considerations are 
product training, co-op advertising, seasonal promotions, and 
merchandising. Again, this is not a one-size fits all, so be diligent 
about addressing this segment’s SPECIFIC needs in these areas. 
Defining a channel management strategy for each segment allows 
you to be more effective within each segment, while gaining efficiency 
at the same time. Still, maintaining brand consistency across all channel 
segments is critical to your long-term success. So find a good balance 
between customization and brand consistency and you’ll be on your way 
to successful channel management. 
Channel Intermediaries
Channels of Distribution are Essential for Getting Products to 
Consumers
Most companies would encounter administrative and logistical 
problems in trying to deliver their goods and services to each of their end-


Notes
75
consumers. Instead, companies more often than not use intermediaries to 
distribute their products. This chapter aims to develop an understanding 
of the “place” element of the marketing mix and the role of intermediaries 
in marketing channels. Approaches to designing a channel of distribution 
and issues in the management and control of intermediaries are discussed.
Definition of a Channel Intermediary

marketing channel 
has been defined as “a system of relationships 
existing among businesses that participate in the process of buying 
and selling products and services”. Channel 
intermediaries 
are those 
organisations which facilitate the distribution of goods to the ultimate 
customer. The complex roles of intermediaries may include taking 
physical ownership of products, collecting payment, and offering after-
sales service. 
Marketing channel management refers to the choice and control 
of these intermediaries. As more and more tasks are passed onto 
intermediaries, the producing company starts to lose control and power 
over its products and how they are sold. A key part of channel management 
therefore involves the recognition that networks of intermediaries 
represent social systems as well as economic ones.

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