A marketing channel is a set of interdependent organizations involved in the process of making a product or service available for use or consumption.
The definition bears some explication. It first points out that a marketing channel is a “set of interdependent organizations.” That is, a marketing channel is not just one firm doing its best in the market — whether that firm is a manufacturer, wholesaler, or retailer. Rather, many entities are typically involved in the business of channel marketing. Each channel member depends on the others to do their jobs.
What are their jobs? The definition makes clear that running a marketing channel is a “process.” It is not an event. Distribution frequently takes time to accomplish, and even when a sale is finally made, the relationship with the end-user is usually not over.
For example, think about an end user purchasing a microwave oven and it demands for post sale service.
Finally, what is the purpose of this process? The definition claims that it is “making a product or service available for use or consumption.” That is, the purpose of channel marketing is to satisfy the end-users in the market, be they consumers or final business buyers. Their goal is the use or consumption of the product or service being sold. A manufacturer who sells through distributors to retailers, who serve final consumers, may be tempted to think that it has generated “sales” and developed “happy customers” when its sales force successfully places a product in the distributors’ warehouses. This definition argues otherwise. It is of critical importance that all channel members focus their attention on the end-user.
