ROLE OF CONSUMER BEHAVIOR IN MARKETING

Consumer Behaviour refers to the study of buying tendencies of consumers. An individual who goes for shopping does not necessarily end up buying products. There are several stages a consumer goes through before he finally picks up things available in the market. Various factors, be it cultural, social, personal or psychological influence the buying decision of individuals.

Marketers need to understand the buying behaviour of consumers for their products to do well. It is really important for marketers to understand what prompts a consumer to purchase a particular product and what stops him from buying.

What marketers need to understand ?

The psychology of consumers (what they feel about a particular product and their brand on the whole).

How consumers are influenced by their immediate surroundings, family members, friends, co workers and so on.

What a consumer thinks when he goes out for shopping ?

A marketer needs to first identify his target consumers and understand their lifestyles, psychologies, income, spending capabilities, mentalities to offer them the right product.

Individuals from lower income group would never be interested in buying expensive and luxurious products. He would first fulfill his basic physiological needs like food, air, water etc. Trying to sell a Mercedes or a Rado watch to someone who finds it difficult to make ends meet would definitely be a disaster.

Kellogg’s K special would hardly find any takers in the low income group. In this segment, individuals would be more interested in buying fresh fruits, vegetables, pulses which are necessary for their survival rather than spending on health supplements.

It is really essential for the marketers to understand the needs of consumers. Find out what they are actually looking for?

There are ideally two different ways which enable marketers to understand their consumers.

• Primary Research
• Secondary Research

Primary Research - Primary Research refers to a research methodology where marketers interact with consumers directly and gather as much information as they can. Information is generally collected through surveys, questionnaires, feedback forms, interviews etc.

Secondary Research - Secondary Research often refers to relying on information which has been collected by others at some point of time.

The background and family status of an individual also influence his/her buying behaviour.

Selling a laptop to an individual who is not much educated would be pointless. Remember consumers would show interest in your products only if they are of any use to them or their immediate family members. A low grade worker would never be interested in purchasing business suits or formal shirts.

Canned juices are a hit among middle and higher income group where individuals are really conscious about their health and fitness. Individuals who live hand to mouth would never spend on sugar free tablets, health supplements, or for that matter “Diet Coke”.

It is also important to give complete information to end-users. Do not hide anything from them. It is not ethical. All tobacco products come with a warning. Individuals should be familiar with not only the benefits but also the side effects of the products.

Marketers must also take into account:

• Age group of consumers
• Geographical location
• Lifestyle of consumers
• Social Status of consumers

Funky designs, loud colours would be a hit among teenagers whereas middle aged and elderly people would prefer subtle colours and sophisticated designs.

Salwar Suits are extremely popular in North India whereas females prefer saris and skirt blouses in eastern and southern parts of India.

Individuals from posh localities and good jobs would show keen interest towards buying exclusive and unique products as compared to individuals who do not come from an affluent background.

ROLE OF SOCIAL MEDIA IN MARKETING

In today’s world social media use is like wild fire spreading everywhere. If see now Facebook has more than a billion users, with Twitter, Google+, and LinkedIn boasting hundreds of millions of active accounts. Every major age group live on various social media front, may the use be different whether they’re engaged in social media marketing, keeping in touch with old friends, or seeking out new connections, using one or the other social media tool they are connected to the world.

Talking about social media it is clear that being calculated and wise are only the things which will help you survive. Social media can take you on great heights if you play well or can throw you hard on ground if do some mistake. The best way to avoid these mistakes is to follow certain social media etiquette. Use of social tools in ways that can benefit you and your audience, can also be termed as “etiquette” , are just as important to your success as targeting influencers, finding a good dashboard and building a lead generation funnel.

There are many etiquette that can be listed out as a do’s and don’ts list, instead of that this article highlights some of the common yet important mannerism one should follow at social media platform.
The very basic yet a very helpful thumb rule alike, for social media etiquette, is a simple question “would your grandma approve it” this question is to be asked while putting up anything online. This will make you sure that those uploads will not attract much negative pins. The only thing is if you wouldn’t want your grandmother to see it, don’t post it.

The next etiquette is never steal because everything is online and will be seen by all. This refers to using the information without actually giving proper credits to the original source. The lack of this practise can attract legal issues which will spoil your image on social media platform.
Uploading various images or photos of your college or institute is very good way of engaging your prospectus students and even giving them a virtual tour will let them see your institute, but photos speaks more than words and hence you should be very careful of uploading photos online. Make sure your photos show you in the right light, because they are easy to share and can be picked up through Google images, and other search engines.

Don’t try to be omnipresent, that is try to avoid presence on each and every social media front, especially if you are not able to update and maintain all the channels. Be on two or three platforms, maintain it well and then if room available go for next platform.
Hash-tag is a great tool to associate and be searchable at the relevant topics. So every upload should have proper hash-tags but at the same time make sure that you don’t choke the upload with many hash-tags. Strictly avoid the hash-tags which are not relevant. This will also help to avoid association of your institutes name with irrelevant subjects.

Although photos are the most obvious aspect of your online profile, text-based posts, comments and tweets can be equally destructive to your social image. Tweets can ruin your social image if they are inappropriate.

SIX SIGMA PRICING AND ITS USES IN MARKETING

Six Sigma has as of late moved from being exclusively implied for assembling procedures to front office techniques. This is regularly alluded to as Business Process Improvement or abbreviated as BPI and is another idea in the business. This movement can possibly enhance organizations in numerous different parts of work. This is particularly powerful where numerous organizations are encountering an abatement in edges and an expansion in advertising costs. Business Process Improvement inside this technique is equipped for enhancing both edge and income effectively after some time. 

Both BPI and its connection with Six Sigma is not an essentially new idea, but rather it has been as of late recognized as a viable one. Many direct advertisers are as of now acquainted with the idea particularly when attempting to enhance battles and measure its consequences for the present market. At to begin with, these ideas may appear to be fairly befuddling and muddled yet can be compared to altering the guidelines on a cleanser bottle. Rather than saying: 'wash, flush and rehash' a Six Sigma change may state "wash twice and on the second wash do it all the more energetically.' 

Utilizing this procedure in the showcasing period of business utilizes some extremely helpful devices like process maps, fishbone graphs, pareto diagrams, and conceptualizing. There are likewise other exceptionally compelling apparatuses, for example, the Design of Experiments with the utilization of Full Factorials. 

These apparatuses are extremely helpful yet are not the most imperative procedures expected to completely execute Six Sigma in showcasing. It is for the most part summed up as understanding the procedures inside showcasing and executing upgrades inside these procedures consistently after some time. This will effectively deliver a few measured and fancied outcomes. 

There are four fundamental standards while executing BPI or Six Sigma in promoting. The first needs to do with understanding that there are 3 primary wellsprings of income inside an organization. These wellsprings of income are procured through including new clients, getting old or existing clients to purchase more, and getting these clients to purchase all the more much of the time. Furthermore, recognizing the procedure is required keeping in mind the end goal to realize the 3 sources above. This is basically a decision between making another procedure or dealing with enhancing one that as of now exists. 

Third, separating the procedure is the following stride to effectively incorporating these systems into the advertising domain of business. This should be possible by recognizing every one of the factors inside the procedure. In the matter of promoting this is normally subjective yet now and again these factors can be evaluated. 

In conclusion, utilize methodology, for example, the DMAIC system to help control or enhance the underlying procedure. On the off chance that this procedure is taken after, any organization will have effectively sorted and comprehended an issue or accomplished another objective in their promoting effort. 

BRAND WARS : - PERK V/S MUNCH

Its been quite a while since Indian ad world saw a comical battle between the brands. There has been prominent aggressive wars between the brands like Horlicks Vs Complan, Vim Vs Dettol, Dettol Vs Lifebuoy, Pepsodent Vs Colgate and so forth however these were not kidding battles.

As of late the new war began between the chief opponents Perk and Munch. These brands were keeping diverse ways between each other for a long while. Both were attempting to position themselves on various properties ; Perk concentrating on the glucose content while Munch was concentrating on the crunchier recommendation. Be that as it may, Perk chose to jab Munch by propelling the main TVC including the child - Monu leaving home since his dad gave the greater, heavier Perk to his sibling Sonu.

Not to be deserted, Munch countered with another TVC which highlights Sonu leaving the father since he gave the more delectable Munch to the sibling Monu.

The Perk TVC was silly with the brand attempting to beat Munch by discussing the distinction of 1 wafer and 5.5 grams with the Perk.

Crunch however attempted to make light of the grammage examination by concentrating on the taste. The brand entertainingly counter's Perk's claim by expressing that chocolates are eaten for taste and not weight. While this contention is powerless counter for Perk's claim, what spares Munch was the cleverness and the moment battle back to Perk's hostile.

Had Munch not responded , Perk could have utilized the "high grammage " esteem for cash recommendation viably

Crunch was as of late putting vigorously in the advancement by taking in cricketer Virat Kohli as the brand represetative . Liven was battling with the situating suggestion and was as I would see it had a weaker stage in light of the glucose content. Liven was attempting the split far from that weaker spot by propelling a hostile against Munch.

With the two brand's ways crossing now, it will be an intriguing space to look for.

CADBURY REBRANDS ECLAIRS TO CHOCLAIRS

In a fascinating move, Cadbury's has rebranded its eclair image to Choclairs. The brand is presently running a TVC imparting this rebranding. Cadbury have two brands in the Eclairs fragment - Cadbury Dairy Milk Eclairs and Cadbury Eclairs Rich.

As per Business Standard, echlair advertise in India is worth around Rs 1000 crore( 2011statistics) and is seeing serious rivalry for share between the players like Nestle, Parle, Cadbury and Perfetti. It is evaluated that Cadbury is driving the market with its CDM Eclairs.

What can be the conceivable rationale behind the rebranding of an exceptionally surely understood brand ?

One reason can be to deal with the issue of bland nature of the term Eclairs. As I comprehend, eclairs remains for the uncommon sort of sweet and is utilized by every one of the players in the market. So when a purchaser request an eclairs, it is retailer that chooses which brand to be given. So by changing the name of CDM Eclairs to Choclairs, Cadbury's anticipate that that issue will die down and with the new TVC the brand is attempting to educate the customer to tell the new name Choclairs.

Second reason can be to expel the underwriting of Dairy Milk from this classification. In my prior posts on this brand, it might be reviewed that Cadbury's had before renamed its eclair to Cadbury's Dairy Milk Eclairs .as a result, the eclair was a Product line augmentation of Dairy Milk mark. Presently the brand proprietors might need to limit the utilization of Dairy Milk to the chocolate bar class. So since the underwriting is expelled, the eclairs would require a character and Choclairs has turned into another autonomous brand.

Third reason can be that Choclairs is the brand which is claimed by Cadbury's and is a main brand in UK and China. Choclairs was made in 1996. So this move can be viewed as a worldwide arrangement of the brands by Cadbury.

The situating of Choclairs in India is interesting. The new brand's principle message is that it won't stick on the teeth. The brand has the slogan " jo dimag mein chipke, daaton mein nahi " which means " It will adhere to your brain and not on teeth ". I ask why the brand has taken such a trait in a rebranding exercise.

Truly eclairs tend to stick to gum and teeth and might be the brand feels that it might incite numerous purchasers far from the class. In any case, as a slogan, I feel that the brand merits a superior treatment.

PRODUCT LINE EXTENSION-LUX EXTENDS TO DEO

Lux, India's most celebrated individual care mark has stretched out itself to deo. The crusades are on air highlighting the expansions. The deo advertise in India is seeing enormous measure of brand movement with new brands being propelled practically consistently. As indicated by Economic Times, the deo market is assessed to associate with Rs 1300 crore and developing at 40%.

The question as dependably is the thing that can be rationale behind HUL extending its famous image to deo. It is not that Lux is not stretched out some time recently. The brand has cleansers, shampoos, bodywash in the product offering. Universally this is the first occasion when that the brand is reaching out to antiperspirants.

HUL has been a pioneer in making the deo classification in India. The organization holds its initiative position in the market with its notorious image Ax. HUL additionally has its against sweat deo Sure and furthermore Dove. So as opposed to contributing on these brands why might HUL attempt to amplify Lux into this class ?

One of the reason can be to pre-empt rivalry by flooding the market with its own brands. Lux has a colossal value which will mean trials and incremental deals. Promote, the organization is additionally attentive about the dispatch of contending brands like Santoor, Nivea and so on into this class.

Be that as it may, HUL is going for broke of spreading the financial plans too far on these expansions. After Ax, the organization was not ready to turn out with another blockbuster deo mark. It hauled out Rexona and Sure was not ready to duplicate the accomplishment of Rexona ( amid the underlying years). Bird is additionally another brand which is stretched out to all conceivable individual care classes.

Lux as a brand will get more weakened if HUL tries to drain its value excessively. None of its prior augmentations could reproduce the accomplishment of the center brand. As opposed to weakening, HUL could have propelled new centered deo brands.

WAYS OF MANAGING MASS COMMUNICATION

Mass communication is the study of how people exchange information through mass media to large segments of the population at the same time. In other words, mass communication refers to the imparting and exchanging of information on a large scale to a wide range of people.

Ways of Managing Mass Communications are as follow: Advertising, Sales Promotions, Events and Experiences, and Public Relations

ADVERTISEMENT:

Advertising and any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Advertisers include not only business firms but also charitable, nonprofit, and government agencies.
An advertising objective (or advertising goal) is a specific communications task and achievement level to be accomplished with a specific audience in a specific period of time. We can classify advertising objectives according to whether their aim is to inform, persuade, remain, or reinforce.
Developing an advertising program is a five step process:

1. set advertising objectives
2. establish a budget
3. she is the advertising message and creative strategy
4. decide on the media
5. evaluate communication and sales effect

SALES PROMOTION:

Sales promotions consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade. Sales promotion includes tools for consumer promotion, trade promotion, and business and salesforce promotion. In using sales promotion, a company must establish its objectives, select the tools, develop the program, pre-test the program, implement and control it, and evaluate the results.

Sales Promotion Objectives
Sales promotion can be used to achieve a variety of objectives. Sales promotions often attract brand switchers, who are primarily looking for low price, good value, or premiums. In addition to brand switching, consumers may engage in stockpiling -- purchasing earlier than usual (purchase acceleration) or purchasing extra quantitie\s -- although sales may then hit a post promotion dip.

EVENTS AND EXPERIENCE:
Events and experiences are a means to become part of special and more personally relevant moments in consumers lives. Involvement with events can broaden and deepen the relationship of the sponsor with its target market, but only if managed properly. The functions are as follow:

1. To identify with a particular target market or lifestyle -- Customers can be targeted geographically, demographically, psycho graphically, or behaviorally according to events.
2. To increase salience of company or product name -- Sponsorship often offers sustained exposure to a brand, a necessary condition to reinforce brand salience. 
3. To create or reinforce perceptions of key brand image associations -- Events themselves have associations that help to create or reinforce brand associations.
4. To enhance corporate image -- Sponsorship can improve perceptions that the company is likable and prestigious.

PUBLIC  RELATIONS:

Public relations (PR) involves a variety of programs designed to promote or protect a company's image or its individual products. Many companies today use marketing public relations (MPR) to support the marketing department in corporate or product promotion and image making. MPR can affect public awareness at the fraction of the cost of advertising, and is often much more credible. The main tools of PR are publications, events, news, speeches, public service activities, and identity media. The following functions of public relation are as follow:

1. Press relations -- Presenting news and information about the organization in the most positive light
2. Product publicity -- Sponsoring efforts to publicize specific products
3. Corporate communications -- Promoting understanding of the organization through internal and external communications
4. Lobbying -- Dealing with legislators and government officials to promote or defeat legislation and regulation
5. Counseling -- Advising management about public, issues, and company position and image during good times and bad

CUSTOMERS AND ITS TYPES

A customer is an individual or business that purchases the goods or services produced by a business. Attracting customers is the primary goal of most public-facing businesses, because it is the customer who creates demand for goods and services. Businesses often compete through advertisements or lowered prices to attract an ever-larger customer base.

What does “type of customer” really mean, and how do a businessman recognize the differences between the various types of clients?

What does "type of customer" really mean?

Different customers can have similar characteristics, such as interests, appearance, shopping behaviour etc. So it can be divided into customer segments, or “types of customers”. Of course each customer is unique, but classifying the different personality types can help understanding the various types a marketer may encounter.

THE NEGOTIATOR

A Negotiator is a type of customer who always wants to bargain. No matter how calm and quiet, or confident and loud – he is ready to negotiate. If a businessman is dealing with them, know that a common objection is to bargain  price based on a cheaper competitors offer. But most of the time they want to bargain as a matter of principle.

How to Deal With a Negotiator: If a businessman has  time for negotiation, he can go on as long as he don’t harm his selling principles. Sometimes negotiators will get unpleasant and keep asking for more until they are certain they will not get more. The negotiator seeks to beat you down, no matter how good the deal is. Don’t get angry into any discussion and argue calmly and professionally. Stay confident and point out the good quality and performance of the product.

THE WELL-INFORMED

The well-informed are confident. They will walk directly towards the shop, giving businessman a firm handshake.  They already know everything, they expect professional advice from him. Often their decision to purchase is based on how the product reflects their social status.

How to Deal With the Well-Informed: It can get quite tough dealing. Even if they already seem to have formed an opinion, provide them with precise information. Acknowledging their competence will comfort them. If their idea is false try not to lecture them as this will make them uncomfortable and perhaps even angry. Small talk might not be appropriate in this context. Instead suggest products without trying to persuade them in their final purchasing decision.

THE ANNOYED ONE

Every once in a while a businessman has to deal with customers who complain about almost everything. Whether it’s the high price, the bad quality or the unfriendly seller- there’s nothing really you can do to please the customer. They’re just always irritated.

How to Deal With the Annoyed Ones: A way to handle these types of customers is to impress them with knowledge, then he may be  able to ease the customer’s mind with the right balance between problem solution, approval, politeness and courteous treatment. When getting the feeling of being listened and responded to, he eventually able to convince them. They might even give in return a smile!

THE SUSPICIOUS ONE

Suspicious customers will not hide their mistrust of products and advertising. They’re one thing above all: critical. They will gladly let a businessman explain everything and surprise him with a strong opinion and knowledge.

How to Deal With the the Suspicious One: Don’t interrupt them, make them feel that they are taken seriously. A businessman needs to seek confidence and show them that they are in best hands. Assure to provide reliable information and convince them with great expertise. Everything else will make them even more skeptical.

THE QUESTIONER

This type of customer can be very pushy as he wants to know everything. They have a doubt on everything and eager to ask so many things about the product.

How to Deal With the Questioner: Firstly try to find out if they really intend to buy. Perhaps they already ordered the product somewhere else and just want a free consultation. If you don’t think so, stay friendly and patient as always. Even if questioners are not buying right away, your patience will be remembered.

THE ONES WHO AGREE ON EVERYTHING

These customers are reserved and act shy. They will say “yes” quickly. At the same time they’re overwhelmed and feel that they’ve been taken by surprise. The sales conversation is a stressful moment for them. Sensitivity is required here.

How to Deal with the Ones who Agree on Everything: Keep talking calmly and in a non-binding way. Otherwise they will feel pushed into a corner quickly and obliged to buy. You’ll probably won’t sell to him a second time when he gets the feeling he needs to buy, simply to get out of the situation. So try not to turn this customer off by letting him feel like he’s being sold to. Make sure you ask open questions to find out about the customer needs and preferences. Give him the time for consideration and leave him in the meantime. Let him approach you for his final purchase decision.

Bear in mind, that most people are going to be some sort of combination of these customer types. However, understanding each type and how best to approach them, will help a businessman attracts all of the personalities and hopefully close more sales.

PRICING TACTICS IN MARKETING

Pricing is one of the four pillars of marketing, along with product development, positioning and place of sale. Any businessman can use temporary discounts or permanent price reductions as part of its marketing strategy with different risk/reward levels. Depending on its competition and target customer, price-cutting can help the businessman increase sales volumes and profits, or damage its company’s brand and make it less competitive.

IMPORTANCE OF PRICING

Setting the right pricing is one of the important P’s of the marketing mix. Of the “Four P's” taught to every freshman marketing student, "pricing" is considered as important as any of the others. The price a businessman set not only affects its business sales volumes and profits, but also the brand image of its company as well. Pricing is so important that some manufacturers set specific limits on what retailers can sell their products for, including both the high and low selling price. Small-business owners use temporary price discounts as short-term tactics to go along with long-term pricing strategies.

 

PERCEIVED VALUE

The price a businessman sets for its product sends a message to consumers about its worth, creating a perceived value for its products or services. Selling product at prices lower than the competition tells consumers who buy based on value and affordability that it is a bargain. Low prices can create a negative feeling in the mind of high-end shoppers. High prices might send a message that the company offer superior quality because of the product’s features, the customer service it offers or both.

Pricing is a very powerful weapon in marketing, but there are many different ways to use it to help achieve marketing objectives. It is important to make a distinction between pricing strategies and pricing tactics

PRICING STRATEGIES

These are adopted over the medium to long term to achieve marketing objectives They have a significant impact on marketing strategy.

PRICING TACTICS

These are adopted in the short run to suit particular situations Tactics have only limited impact beyond short-term sales of the product itself. 

It may also be that the pricing strategies a business can implement are constrained by the competitive position of the business.

It is often said that there are four categories of position a business can find itself in which influence the control it has over pricing:

1) Price taker

Here, a business has no option but to charge the ruling market price.

(2) Price maker

For a price maker, the business has a strong enough competitive position to be able to fix its own price – either higher or lower than the competition.

(3) Price leader

A price leader is often a market leader whose market share is so strong that its price changes are closely followed (and often copied) by rivals

(4) Price follower

A business that just follows the price-changing lead of the market leader (ignoring the rest of the competition)

ANSOFF MATRIX OF MC DONALDS

To portray alternative corporate growth strategies, Igor Ansoff presented a matrix that focused on firm’s present and potential product and its market. In this matrix it consider ways to grow via existing products and new products, and in existing markets and new markets, there are four possible product combination.

 Lets take an example of Mc Donald to understand the four possible product combination:

McDonald Corporation often uses Ansoff Matrix’s growth strategies, to focus on the firm's present and potential products and markets & customers by considering ways to grow via existing products and new products, and in existing markets and new markets. There are four possible product-market combinations of Ansoff Matrix of Mcdonald's are given. McDonald is often being involved in applying all Ansoff's Matrix four different growth strategies in the different markets round the globe as under:

  

McDonald is one of the most famous brands for providing innovations but even in this ever changing and innovative era it keeps its products same in the same market but this happen for a very short span of time (Even maximum a month). The results of firm's existing resources and capabilities remain secure and the firm increases market share if competitors reach capacity limits.

PRODUCT DEVELOPMENT STRATEGY:-

McDonald’s Corporation has always provided new and new innovations to its customers. It always has provided a handsome level of consumer economic surplus to its customers. McDonald’s always seeks innovation from one market and provided these innovations and new products to the rest of the world. This strategy does have a minimal level of risk which almost always have provided good results to the organization for keeping the strength in its 47 million customers averaged daily existing customers. The Mc donald's growth strategy is the secret of organization's success.  

MARKET DEVELOPMENT:-

As we all know that McDonald's is a Global organization and it has the franchisee FDI system to reach the new global markets of work in its international business. It has more than 31,000 business outlets (franchisees) in 119 countries round the world and it always pursuit the additional market segments on geographical basis. As the firm is expanding into new markets; the market development strategy typically has more risk than a market penetration strategy for McDonald’s but the developments of new markets have been proven significantly successful for McDonald’s core competencies of its experience with a specific market segment.

DIVERSIFICATION:-

Diversification is not the best of the idea for the company because it can’t afford to make new products in the new markets. It’s actually not possible with the franchisee system that McDonald’s adopts. Keeping aside from Franchisee system McDonald has also proved success in this strategy by owning a majority stake in Chipotle Mexican Grill & Pert A Manger and acquiring Donatos Pizza.  McDonald’s adopted both product and market development strategies which was outside the core competencies of the firm. 

	EXISTING PRODUCTS	NEW PRODUCTS
EXISTING MARKET	Market Penetration hamburgers, cheeseburgers, chicken products, French fries, breakfast items, soft drinks, milkshakes and desserts. More recently, it has begun to offer salads, wraps and fruit.	Product Development Innovation in all products, Introduction of new products (Brands)
NEW MARKET	Market Development  Uruguay, Venezuela, Yemen	Diversification Pret A Manager, Chipotle Mexican Grill

CHANNEL MANAGEMENT AND ITS LEVEL

Channel Marketing is a process wherein the company develops various marketing techniques and sales strategies to reach the customer base in the widest possible way. The channels are nothing but the ways or outlets for the company to market and sell its products. It’s a way of transferring the ownership of goods from the point of production to the end users that is consumers. The ultimate aim of any Organization is profit maximization and to do that they need a strong relationship between customers and its products.

Channel allows the manufacturer or wholesaler to reach its end user by using more than one distribution channel. The producer at the same time can reach its customer through website or sell to another company or retailer that will reach the consumer but by using different channel, i.e., a store.

Example :- Take breakfast cereal. The channel begins on a field of wheat, where producer produced it. The grain then travel to a grain dispensary, then it went to cereal factory, through a grain distributor and then finally it went to the shelves of stores and then ends up in the bowl of someone’s kitchen table, and finally the channel gets complete.

IMPORTANCE OF CHANNEL MANAGEMENT

Ø  It helps company in developing a channel through which it can sell products and provide services to its customers.

Ø  Its aim is to establish communication between company and customers, and to do so its necessary to segment the channel according to the needs, buying pattern of the customers.

Ø  It’s a useful tool for management as it helps in creating an effective and well planned marketing strategy.

ROLES OF MARKETING CHANNEL IN MARKETING STRATEGIES

Ø  It links the producers to buyers.

Ø  It helps in influencing the firm’s pricing strategy

Ø  Affects product strategy through branding, policies.

Ø  It customizes profit of the company.

Channel Marketing involves finding new partners that help the producer to transfer the goods to the customers, because there are very few producers who directly sell their goods to the customers directly but major of the producers sold their goods through intermediates. Some company uses their internal channel or some external channel.

 LEVELS OF DISTRIBUTION CHANNEL ARE AS FOLLOW:-

PRODUCER  à CUSTOMER

Under this the producer sells its goods or provide services directly to the consumers with no involvement of any intermediary or wholesaler or a retailer, an agent. The consumer can directly go to the producer to buy the product,. These type of marketing channel is beneficiary for farmers.

PRODUCER àRETAILERà CONSUMER

These is the another level of channel marketing where the goods manufactured by the producer are not directly sell to the consumers but through Retailers. Retailers like Walmart, Bigbazar buy the product from the manufacturer and sell them directly to the consumers. These channel is good for goods like clothes, shoes, furniture, tableware. Since customer needs more time to buy these products. Intermediaries are essential due to their professionalism and ability to offer the product to the target market. Thus they play an important role in maintaining a correspondence between demand and supply.

PRODUCER àWHOLESALER/DISTRIBUTORà CUSTOMER

Wholesalers like Coscto buy the products from the manufactures and sell them directly to the consumers. In this level of channel consumers can directly buy goods from the wholesaler in bulk. Purchasing from wholesaler decreases the price of the goods because the extra cost such as service cost, or sales cost are cut by the wholesaler that are charged by the retailers. But sometimes wholesaler go through retailers and then to consumers to increase the profit margin of the product.

PRODUCERà AGENT/BROKERà WHOLESALER OR RETAILERà CUSTOMER

This level of channel marketing involves more than one intermediaries before the product gets into the hands of end user. This middle man is known as agent, who negotiated between the manufacturer and the seller. Generally a need of agent arises when the goods are perishable in nature and manufacturer wants to get its product into the market quickly. So the agent went to the retailer with the goods or he can use another route that is he went to wholesaler, then wholesale went to the retailer and then finally it reaches to the end consumer. The cost of this type of product is more because of many channels and profit maximization is more.

Thus Channel Marketing and its management is very necessary for any organization as this enables the manufacturer to sell its product and services to the consumers. Without proper channel of distribution it becomes difficult to exist in the market. Thus Channel Marketing plays a very crucial role in terms of making product available to the consumer.