Monday, December 7, 2009

Marketing Channels

A marketing channel is a set of interdependent organizations that ease the transfer of ownerships as products move from producer to business user or consumer. In Nike's case, mostly the consumer. Most large companies have a marketing channel but each has different channel members. Nike has made an effort to cut out as many intermediaries as possible so they can save costs for both the company and the consumer. One source of cutting out intermediaries is direct channel, which is when the producers sell directly to consumers. telemarketing, mail-order and catalog shopping are all forms of direct marketing activities but Nike's most effective form of direct channel is electronic retailing. Electronic retailing allows the customers to save both time and money on their purchases.

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