Designing Channel System
Designing Channel System
Designing Channel System
•Prepared by:
•Arquero Kristine Aissel A.
•Arquero Blessed Joy
•Doctolero Wilita
•Ganit Anjel
•Martinez, Clarice
Introduction
Channel design is the strategic process that commercial organizations use to balance
resources across direct and indirect channels or routes to market. Direct channels typically
include field sellers and e-commerce platforms, while indirect channels can include a mix of partners,
distributors and marketplaces.
The contemporary definition of 'marketing' as a process of moving goods from producer to
consumer with an emphasis on sales and advertising first appeared in dictionaries in 1897. The term,
marketing, is a derivation of the Latin word, mercatus meaning market-place or merchant.
Marketing channels are a collection of interdependent businesses engaged in the distribution of
goods and services. Academic research has demonstrated that marketing channels are the means
through which customers can access goods and services. All products are delivered through channels,
and the marketing strategy will rely on the distribution method. A marketer must decide which
channel is ideal for his specific product, therefore the path the product takes from production to the
consumer is crucial. One may say that the channel serves as the intermediary between producers and
consumers. The management must make important decisions on the marketing channel system.
Today, the most popular types of marketing channels are websites, email, targeted digital
advertising, and events (digital or in-person). In the past, people usually used a direct distribution
channel (like mailers) or an indirect marketing channel (like television).
History of Designing
Channel System
International
International marketing channels consist of interdependent organizations
participating in business activities necessary to make a product or service
available for use in markets around the world.
The structure or design of global channels can vary widely, comprising
various organizational participants (foreign distributors, agents, subsidiaries, etc.)
engaged in a diverse set of functional activities (selling to foreign customers,
warehousing inventory, etc.).
Local
Metro Manila is the commercial capital of the Philippines.
The use of local agents or distributors greatly improves the opportunity for
market success. There are currently two types of importers in the Philippines:
stocking distributors and indenters. Stocking distributors are bound by a contract
to buy and sell a prescribed number of items as stated in their agreement with the
foreign supplier
History of International Warehouse
“Amazon”
Amazon has come a long way since it was founded by Jeff Bezos in his garage in Bellevue, Wash.,
on July 5, 1994. The following is a brief history and timeline of events that have evolved Amazon
from its humble beginnings to a multinational business empire. The 1990s Amazon officially opened
for business as an online bookseller on July 16, 1995. Originally, Bezos had incorporated the
company as Cadabra but later changed the name to Amazon. Bezos is said to have browsed a
dictionary for a word beginning with A for the value of alphabetic placement. He selected the name
Amazon because it was exotic and different and as a reference to his plan for the company's size to
reflect that of the Amazon River, one of the largest rivers in the world. Since its inception, the
company's motto has always been "get big fast.“
Amazon (Amazon.com) is the world's largest online retailer and a prominent cloud service
provider. Originally started as an online bookselling company, Amazon has morphed into an internet-
based business enterprise that is largely focused on providing e-commerce, cloud computing, digital
streaming and artificial intelligence (AI) services.
Following an Amazon-to-buyer sales approach, the company offers a monumental product range
and inventory, enabling consumers to buy just about anything, including clothing, beauty supplies,
gourmet food, jewelry, books, movies, electronics, pet supplies, furniture, toys, garden supplies and
household goods. Headquartered in Seattle, Amazon has individual websites, software development
centers, customer service centers, data centers and fulfillment centers around the world.
History of Local Warehouse “Airspeed”
Airspeed is an end-to-end logistics solutions and express courier
company that has been in the industry for over 35 years.
The Airspeed team are always committed to make it happen to serve its
clients and stakeholders in providing their logistics needs. We help our
business grow their businesses. We customized our services based on their
logistics requirements.
Airspeed invests in the best facilities and technology to ensure that your
cargo is handled and monitored efficiently. Our own warehouse space is
equipped with cctv cameras and alarm systems to ensure safe storage
Warehouse management
With Airspeed, you can monitor and manage the flow of your inventory, and reduce unnecessary
warehousing costs to help improve your bottom-line profit and customer service.
Nationwide Distribution
Door-to-Door Delivery, Inter-island Delivery – We can gather your items in a bundle, and send
them out to your customers within turn-around time and efficiently.
Advantage of Designing Channel System
1. It provides businesses with a greater level of cost efficiency.
Because sales are handled through the distribution channel instead of directly to the end customer, then the
ability to sell becomes easier and more efficient. Instead of an individualized approach, the distribution channel
can reach multiple end users simultaneously with a consistent message. This creates fewer expenses in return.
The average organization can take advantage of existing channels that exist within each
region they wish to target. Because there is no need to create a new channel, the actual
expenditures to reach a targeted demographic are often quite small. Instead of a large
upfront investment, all that is typically required is a small, manageable ongoing
investment whenever communication or product distribution needs to happen.
Disadvantage of Designing Channel System
1. The ability to interact with the end user is completely eliminated.
When distribution channels are used, then contact with the end users are sacrificed for the ability to reach
multiple end users simultaneously. When an organization knows more about the interests, habits, and passions of
their end users, they’re able to engage with them on a more personal level. The end result is a higher level of
brand loyalty, something which distribution channels don’t necessarily provide.
5. Different intermediaries may have different goals that they wish to accomplish.