MARKETING CHANNELS FOR FMCG
MARKETING CHANNEL
A marketing channel consists of the people, organizations, and activities necessary to transfer the
ownership of goods from the point of production to the point of consumption. It is the way
products get to the end-user, the consumer; and is also known as a distribution channel. A
marketing channel is a useful tool for management, and is crucial for creating an effective and
well-planned marketing strategy.
MARKETING CHANNELS IN FMCG SECTOR
FMCG distribution channels are pathways along which the FMCG products travel from
manufacturers to consumers. They are channels along which the goods, information and finance
flow in the system. While some FMCG manufacturers prefer dealing directly with consumers,
most manufacturers use a distribution network to transfer goods to their consumers.
A manufacturer may plan to sell his/her products either directly or indirectly to the customers. In
case of indirect distribution a manufacturer has again an option to use a short channel consisting
of few intermediaries or involve a large number of middlemen to sell his/her goods. Therefore,
there are various forms of channel networks having different number and types of middleman.
COMPONENTS OF MARKETING CHANNELS
FMCG distribution channels consist of three important entities: agents, merchants and
facilitators.
1. AGENTS: Agents generate sales by promoting a company’s product but they never stock or
buy the product themselves. An agent can be an independent person or a member of the
company itself.
2. MERCHANTS: Merchants such as retailers, wholesalers or stockers buy and stock the
products in bulk and them supply them to other retailers or sometimes directly to the
consumer. Merchants are usually independent but sometimes a manufacturing unit has their
own wholesale or retail departments.
3. FACILITATORS: Facilitators facilitate the transportation of goods manufactured from one
place to another. Facilitators include logistic services, warehouse owners, independent
distributors who are just involved in storing and transporting the manufactured product and
not promoting or trading them.
MARKETING CHANNEL
A marketing channel consists of the people, organizations, and activities necessary to transfer the
ownership of goods from the point of production to the point of consumption. It is the way
products get to the end-user, the consumer; and is also known as a distribution channel. A
marketing channel is a useful tool for management, and is crucial for creating an effective and
well-planned marketing strategy.
MARKETING CHANNELS IN FMCG SECTOR
FMCG distribution channels are pathways along which the FMCG products travel from
manufacturers to consumers. They are channels along which the goods, information and finance
flow in the system. While some FMCG manufacturers prefer dealing directly with consumers,
most manufacturers use a distribution network to transfer goods to their consumers.
A manufacturer may plan to sell his/her products either directly or indirectly to the customers. In
case of indirect distribution a manufacturer has again an option to use a short channel consisting
of few intermediaries or involve a large number of middlemen to sell his/her goods. Therefore,
there are various forms of channel networks having different number and types of middleman.
COMPONENTS OF MARKETING CHANNELS
FMCG distribution channels consist of three important entities: agents, merchants and
facilitators.
1. AGENTS: Agents generate sales by promoting a company’s product but they never stock or
buy the product themselves. An agent can be an independent person or a member of the
company itself.
2. MERCHANTS: Merchants such as retailers, wholesalers or stockers buy and stock the
products in bulk and them supply them to other retailers or sometimes directly to the
consumer. Merchants are usually independent but sometimes a manufacturing unit has their
own wholesale or retail departments.
3. FACILITATORS: Facilitators facilitate the transportation of goods manufactured from one
place to another. Facilitators include logistic services, warehouse owners, independent
distributors who are just involved in storing and transporting the manufactured product and
not promoting or trading them.
