Channel pricing

One of the variants of price discrimination where the seller charges two different prices for the same product if it is sold through different channels.

Channel of distribution

Comprises all of the businesses and people involved in the physical movement and transfer of ownership of goods and services from producer to consumer. It is also called distribution channel. The concept of distribution channels is not confined only to the distribution of physical products. Distribution channels also exist for the services and ideas.

Channel conflict

Disagreement among marketing channel members on goals and roles—who should do what and for what rewards. There are two types of channel conflicts—horizontal conflict and vertical conflict.

Two-level channel

It refers to the number of vertical channels in a distribution network. A two-level channel contains two intermediaries In consumer markets, these are typically a wholesaler and retailer and in industrial markets it may be a manufacturer’s representative or sole distributor and distributor.

Credence claims

Those advertising claims whose verification of the accuracy is either impossible or unlikely because they require more effort than consumers are willingly to invest. A good example of this is the claim by Sansui TV that it is ‘number one in consumer satisfaction’.

Collectivist cultures

Cultural orientation that encourages people to subordinate their personal goals to those of a stable in-group; values such as self-discipline and group accomplishment are stressed.

Distribution innovation strategy

A strategy that may be adopted by a market challenger or follower. Here the company following this strategy might develop a new channel of distribution. Avon became a major cosmetic company by perfecting door-to-door selling instead of battling other cosmetic firms in conventional stores.

Marketing channel

The set of interdependent organizations involved in the process of making a product or service available to customers. To reach the target market, the marketer has three types of marketing channels: communication channels, deliver and receive messages from target buyers and include newspapers, magazines, radio, television, mail, telephone, billboards, posters, CDs, audio tapes and the Internet; distribution channels, display, sell or deliver the physical product or service to the buyer or user. They include, distributors, wholesalers, retailers and agents; service channels, carry out transactions with potential buyers. These include warehouses, transportation companies, banks and insurance companies that facilitate transactions. Marketers face a design problem in choosing the best mix of marketing channels.