Marketing channels refer to all actions taken in transferring ownership of properties usually from the manufacturer through the distributor and to the final user. Marketing channels may be as short as involving the wholesaler and the consumer or may be very long involving a number of intermediaries such as vendors, retailers, distributors and off course the final user (Zahorsky, 2010, p. 1). A high number of marketing channels leads to a higher end cost to the final user because all the intermediaries involved have to be paid.
The most important aspect of intermediaries is the creation of time and place where products are always availed on time within the final customers’ reach. Most organizations use marketing channels to create a connection between production and consumption which does not only involve delivery of goods but many other aspects of transactions (Berry, 1996, p. 1). Marketing intermediaries provides customers with information concerning the products.
Distributors and retailers may conduct research on products from their production companies and make it available to customers. Most organizations use intermediate channels to promote their products mainly through offers with the most used channel for promotion being retailer shops. Business organizations can only contact their consumers through intermediaries especially the wholesalers and retailers who have direct contacts with the producers and the consumers (Keneth, 2010, p. 1).
This way, consumers’ response towards certain products can be evaluated. Marketing channels are used to make negotiations for organizations on prizes and other terms of sales and promotions. All intermediate channels physically transport and store goods for the production companies as the goods move towards the final users. Production companies do not suffer the cost of the distribution channels because it is paid for by the consumers (Hughes, 2008, p. 1).
Physical distribution
This describes all the actual activities involved from the final production of products up to the end users. These activities occur within the distribution channels involved be it through wholesalers or retailers. Physical distribution involves a number of activities which are all aimed at offering quality products to consumers as well as transporting goods efficiently (McManus, 2008, p. 1). These components include: Customer service where business owners provide services for quality customer satisfaction.
For instance, a wholesaler selling computers may offer to deliver the goods to the customer’s door steps within 48 hours after ordering. It is therefore the duty of the physical distribution system in that wholesale to ensure that good once ordered are delivered to the customer within the shortest time as well as the lowest cost possible (Smith, 2010, p. 1). Transportation methods are very essential in physical distribution because it involves a lot of movement of goods all the way from the producers to the final consumers.
The major modes of moving goods by many businesses are air, water, rail and road. Air transportation is the most efficient where goods involved are perishable and have to be moved over long distances. However, this mode is quite expensive especially for small businesses. Many businesses are turning to water transport because it is cost effective however it is very slow therefore it can only transport the non perishable goods.
An efficient mode is rail due to its ability to transport bulky goods over long distances and it does not pollute the environment. Its only disadvantage is that it is not flexible. Many small businesses prefer road transport which is advantageous in door to door delivery and flexibility. This is the most used mode of transportation in physical distribution by many business marketers (William, 2008, p. 1).
Planning and controlling of marketing activities
Effective control of marketing activities is vital in achieving both organizational functions and marketing targets. The organizational form of marketing evaluation and control involves establishing standards on marketing performance, evaluating the actual marketing performance and taking corrective measures where necessary. Planning and controlling are always related because the plan states the aim of any business activity or what is expected to be accomplished (Miguel, 1988, p. 1).
A performance standard should be set on all marketing activities to enable the business organization evaluate the performance by comparing the standards to the real performance. Performance standards may include: increase in new customers or reductions in sale of faulty products which leads to customer complaints. Managers should always relate the performance standards to the organizations goals and objectives (McHenry, 2010, p. 1).
After the marketing activities are through, managers the compare the standards they had set with the actual marketing activities that have been performed. The marketing managers then determine whether the marketing objectives have been met or if there has been a variance between the performance and the set standards. If a variation has occurred then the managers evaluate the variance from which they can take control measures over the issue.
There are several ways in which marketing managers can control the variance in case of failure to meet the marketing standards. They may find ways of improving the real marketing activities or change the marketing standards. In improving the actual market performance, many managers use motivational methods on the marketing personnel or better yet effectively coordinate the marketing activities (Glennon, 2010, p. 1). For best results, most marketing managers use both methods to correct marketing activities.
Bibliography
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Glennon, p. (2010). Place- the 3rd p of Marketing mix. Web.
Hughes, R. (2008). Why marketing intermediaries are used by most organizations. Web.
Keneth, F. (2010) What Are The Functions of Marketing Intermediaries? Web.
McHenry, W. (2010). Evaluation and Control – Marketing Management. Web.
McManus, W. (2008). Logistics and Physical Distribution. Web.
Miguel, M. (1988). Marketing Information systems. Web.
Smith, R. (2010). International Journal of Physical Distribution and Logistics Management. Web.
William, M. (2008). Understanding Business. Web.
Zahorsky, D. (2010). Tuning In to Your Customer’s Marketing Channels. Web.