MKT 730 Chapter Notes - Chapter 9: Marketing Channel, Digital Marketing, Direct Marketing

• School: Ryerson University
• Department: Marketing
• Course: MKT 730
• Professor: Laila Rohani

Document Summary

Both end users and channel intermediaries need a value proposition presented by the product line in question in order for them to both buy and carry those products, respectively. Each channel to the market produces a different level of sales revenue and has its own set of costs: channel costs may include discounts to intermediaries, transaction costs, and commissions: Commissioned sales agents commission, distributor discount, transaction cost. Small buyers retailer discounts, distributor discount, transaction cost. Knowing the pocket price of each channel allows a business to determine the profitability of each channel on the basis of the cost of goods sold and the marketing and sales expenses allocated to each channel. Many high-tech manufacturers have a much more complex marketing channel system, due to the need to serve both the consumer (b2c) and business markets (b2b) Marketing channel performance is based on the following three factors: customer reach (volume, operating efficiency (cost to serve, service quality (retention)