Discussion for Marketing - Sustainability

In order for a company to bring a product to market that will deliver value to the customer, it must acquire raw materials, manufacture the product, and create pathways to distribute the product to the customer. All of these steps are encompassed in the discipline of supply chain management. Within the study of supply chain management, there is an area that focuses strictly on the pathways involved in getting a company's offering to the customer called marketing channels.

Supply Chain Management

The goal of Supply Chain management is to optimize every step involved in getting a product or service to the customer. For a product, this includes steps that take place before, during, and after production. Examples of these steps include:

Before production

· Securing suppliers for raw materials

· Designing & securing packaging

During production

· Production scheduling

· Inventory management

After production

· Logistics

· Material handling

· Delivery

Take a look at the list of potential partners in the supply chain for a box of corn flakes cereal:

· Raw material suppliers (corn and sugar manufacturers)

· Packaging suppliers (inside bag, outer carton with fancy graphics, brown shipping cartons, etc.)

· Graphic designers (to create the fancy graphics for the packaging)

· Equipment suppliers (to provide the machinery required to process raw materials and transform them into corn flakes)

Marketing Channels

While all links in the Supply Chain are important, the link between the manufacturer and the customer is so important that it requires focused study. The various pathways by which a company's products and services get to the customer are called Marketing Channels (or in some circles Distribution Channels). Typically, multiple companies are responsible for moving a product or service along the marketing channel until it reaches the customer. These companies are known as Channel Partners. 

Take a look at an example of the variety of marketing channels by which a brand name shampoo gets to the customer.

· Hair Salon

· Mass Merchandiser ("Big box") retailer

· Convenience Store

· Drug Store

· Grocery Store

· Online Retailer

As another example, below is a list of possible marketing channels for a brand name handbag:

· Outlet store (owned by the manufacturer)

· Department store

· Manufacturers website

As you can see, there are many types of marketing channels a company can use. Ultimately, the overall marketing strategy (including the target and product positioning) should dictate which marketing channels should be used to deliver the company's offering to the customer.