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Marketing Channel Functions

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Discuss the benefits of three marketing channel functions, and how they can contribute to a firm achieving a competitive advantage.

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1. Discuss the benefits of three marketing channel functions, and how they can contribute to a firm achieving a competitive advantage.

A marketing channel is 'an organized network of agencies and institutions which, in combination, function to perform all the activities required to link producers with users to accomplish the marketing task' (Bennett 1988). That is the main function.

Sell-through function and sell-in function - Another function of channel marketing is that it is also responsible for ensuring that product in distributor and reseller locations gets sold out. In essence Channel sales ensures sell-in, Channel Marketing ensures channel sell-through.

Value function - > competitive advantage - The value function of a marketing channel contributes to achieving a competitive advantage. Third, this marketing channel must be designed such that it performs its function to deliver a level of value to the customer that creates a sustainable competitive advantage for the supply chain. This 'value' can take many forms ...

Solution Summary

Discusses the benefits of three marketing channel functions, and how they can contribute to a firm achieving a competitive advantage. Supplemented with an article on Channel Marketing.

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