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Marketing Channel Systems Essay


LOHAS stands for Lifestyle of Health sustainability. Demographically, LOHAS encompasses a market segment that is involved with sustainable living. People with the LOHAS lifestyle are relatively large percentage of the consumer market. These kind of consumers seek healthier and lifestyles that are sustainable and that determines the services and products that they buy.

Their lifestyles as well as purchasing decisions are basically influenced by the values that they have concerning issues like personal health, community health, social justice as well as the issue of environmental sustainability. Such consumers will for instance opt to go for renewable energy, solar power, organic food, products that can be or are recycled, natural cleaning products and eco-tourism among other options.

People adopting the LOHAS lifestyle are known for campaigning for action to be taken on issues that they purport to be vital for human sustainability like cubing the problem of climate change, ensuring sustainability of the water resources as well as protecting the ecosystem (Carson, 1962).

There is need for the producers or manufactures to consider the needs of the consumers with the LOHAS lifestyle so as retain these kinds of customers. The people with LOHAS values are increasing day by day and they are forming a very large market segment and tapping in such a market segment is vital.

Businesses must therefore have this consumer population in mind by bringing environmental friendly products and this implies that they have to carry out socially friendly businesses. This therefore implies that values play a very significant role in the consumers’ purchasing decisions.

Customer Value Hierarchy

In marketing, the marketer is supposed to consider five levels of the product. Each level is supposed to add the consumer value and the five levels put together form the customer value hierarchy. The fundamental level constitutes core benefits. Marketers have to perceive themselves as being the benefit providers. A hotel guest for instance is perceived as buying rest and/or sleep.

The core benefit is then turned to a basic product by the marketer at the next level which is the second level. A hotel room will for instance consist of the closet, a bed, the dresser and toilet among other products. At level three, the buyer’s expectations are met by the marketer by the preparation of the expected product as per the attributes or conditions that the consumer expects right from the beginning.

The marketer may for instance ensure a quiet environment, a clean room and a well lit room. Since most these hotels will meet this, the customer will opt to go for that which is cheaper or most convenient (Mentzer, 1971).

At the next level, the marketer goes a step higher by preparing a product that surpasses the consumer’s expectations. Competition coupled with brand positioning mostly occurs at this level. Differentiation usually comes up due to product augmentation. The marketer looks at the user’s consumption system as a whole.

Augmentation usually adds cost and with time its benefits become expected benefits. Most hotel guests will for instance expect to get a satellite television and internet access at the hotel premises. Hotels may therefore be forced to come up with new benefits.

The next one is the fifth level and it encompasses the potential product with possible future transformations coupled with the argumentations. Here new distinguishable ways of ensuring customer satisfaction devised.

Importance of Marketing Channel Systems

A marketing system ensures coordination. It ensures a firm’s sustainable competitive advantage over the other competitors as well as reduced costs of distribution. They also ensure growth and increased retailer power. With increased technological advancements and the transfer of the same facilitates easy transfer of ideas about products and their pricing.

By using the system, a firm is in a position to attain its distribution objectives and in the long run it satisfies its customers. It also helps the firm to avoid the existing vulnerabilities and risks. A marketing channel system is very crucial in broadening the logistics issue by taking it as a significant section of the relationship of the marketing channel.

It ensures efficient and quality customer service that is cost effective. It is vital in ensuring a partnership that is long-term and that which reduces redundancy and inefficiency in the system of logistics. All these ensure consistency and timeliness in product and service delivery, as well as protective packaging and cooperation (Robbs, 1993).

Benefits of Interactive Marketing

Interactive marketing is usually preferred by most business firms as it as it gives the firm an upper hand over the other competitors. It is particularly preferred due to the fact it a good rapport is established with the customers. This method makes it easy for the business firm to get the target market over a wider audience.

Technology can be effectively utilized in interactive marketing. The use of video can for instance be very effective in informing the potential consumers about the products are services being offered. The tactic ensures instant feedback and this enables the entrepreneur to improve on the marketing technique or the product quality.

With interactive marketing, it is easy to monitor the requirements of the consumers, their behavior as well as there needs. The method is very effective (Forrest, 1996).

Reference List

Carson, R. (1962). Silent Spring. Oxford: Oxford University Press.

Forrest, E. (1996). Interactive Marketing. London: Macmillan.

Mentzer, J. T. (1971). Logistics and Interdepartment Integration. International Journal of Physical Distribution & Logistics Management , 50.

Robbs, B. (1993). Marketing Channel Systems. Washington: Microsoft Corporation.

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"Marketing Channel Systems." IvyPanda, 4 May 2019, ivypanda.com/essays/marketing-questions-essay/.

1. IvyPanda. "Marketing Channel Systems." May 4, 2019. https://ivypanda.com/essays/marketing-questions-essay/.


IvyPanda. "Marketing Channel Systems." May 4, 2019. https://ivypanda.com/essays/marketing-questions-essay/.


IvyPanda. 2019. "Marketing Channel Systems." May 4, 2019. https://ivypanda.com/essays/marketing-questions-essay/.


IvyPanda. (2019) 'Marketing Channel Systems'. 4 May.

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