Channel Functions

Channel flows refer to the marketing functions performed by channel members within the channel. Eight universal channel flows have been identified:

  • physical possession
  • ownership
  • promotion
  • negotiation
  • financing
  • risking
  • ordering
  • payment

Channel specialization refers to the channel members‘ choice of unique positions in the channel based on their capacities, interests, goals, expectations, values, and frames of references. Hence, each performs those tasks (participates in those channel flows) which it can perform at a comparative advantage.

Channel push refers to reseller stocking and promotions efforts for specific brands and products, often assessed with distribution metrics, shelf share, and measures of reseller promotion efforts.

See Also

Channel margin
Channel performance
Distribution channel
Distribution metrics

References

  1. ^ American Marketing Association, AMA Dictionary.

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