Answer to Question #127936 in Marketing for Dhani Khanna

Question

4. If a consumer buys an item through a catalog over the phone with a credit card, is the credit card company a channel member? If the product is delivered by Federal Express, is Fed Ex a channel member? If yes, what flows do they perform?

Answer 1

A marketing channel is the people, activities and organizations that enhance the transfer of ownership of goods from the point of production to the point of consumption. A credit card is a channel member because it enhances access to the company’s product through the transfer of ownership. The customer gets the ownership of a product through the payment method. The customer had already identified the product before the involvement of the credit card. A channel is any link that enables a customer to access a product. 

Federal Express is a channel member because it enhances the delivery of the company’s products. Through the delivery company, customer needs are satisfied by having the good delivered on time and in the agreed status. The company is also a channel because it strengthens the company’s reputation for delivering products to a wide range of customers. The delivery company provides all the logistical needs of facilitating the delivery of the company’s products.