Market Channels
Name
Institution
Market Channels
The supply of goods occurs through channels. The process involves intermediaries which are comprised of independent groups as well as organizations that are within marketing channels. This allows the availability of products for consumption. In the marketing chain, there exist four significant forms of intermediaries which are: retailers, agents, distributors as well as wholesalers. Intermediaries make goods easily accessible to consumers. In this discussion, therefore, we shall examine the intermediaries available Anthem Incl, which is a health insurance company. Anthems employ all four types of intermediaries in its operation. It has a pharmacy program with about 70000 agents in the world. They have also provided a site for provider application which serves as retails for their services and products. They have various significant bases for their operation, which acts as wholesalers as well as distributors for their products.
The product distribution process is an essential factor that allows companies to move their products to retail or wholesale stores through the use of intensive, selective, and exclusive distribution (Armstrong, Kotler, Harker & Brennan, 2018). Channel intermediaries are another vital role that helps producers expand their product distribution process by making it more cost-efficiently and helps benefit the factory to consumer handling. Although there are many ways for companies to distribute their product, all must use the product distribution process and channel intermediaries in one form or another. Channel intermediaries contribute to the product distribution process by providing producers with an overall more economical sound and the time-efficient advance of products to their consumers (Armstrong, Kotler, Harker & Brennan, 2018). Intensive distribution is the most common for low-cost products that are usually found in multiple stores and locations of Anthem Inc., making it easily accessible for consumers to find their products and services. The selective distribution includes the placement of products within premium retailers with precise locations for middle and higher-end products for the product’s limited accessibility, such as their pharmacies. Finally, exclusive distribution is usually only finding in one specific high-end store locations with very limited convenience insurance plans.
Reference
Armstrong, G. M., Kotler, P., Harker, M., & Brennan, R. (2018). Marketing: an introduction.
Pearson UK.