How to Create an Effective Channel Strategy

Channel strategy is associated with selecting the type of channel, determining the desired amount of distribution, configuring the channel, and its management based on an ongoing process. GE Middle East has to apply a relevant channel strategy to reach its target consumers for its products. Notably, the firm has to consider the utilization of various types of channels and their functions. GE Middle East Company deals with industrial products, and thus, its marketing channel members encompass merchant wholesalers, agent middlemen and facilitating agents ( Mullins et al., 2013) . GE Middle East Company utilizes merchant wholesalers' role since they cannot sell their industrial products directly to the consumers. The channel member takes the title of the products and sells them to retailers. Agent middlemen are also categorized as channel members in GE Middle East Company, and they encompass brokers and the manufacturer's representative. The channel member sells GE Middle East Company products to other industrial customer resellers on a commission basis. GE also utilizes the services of facilitating agents in its distribution channel. The primary function of the facilitating agents is a marketing role, such as advertising. The exhibit's level in which GE Middle East Company uses in its marketing strategy is indirectly channeled ( Jurše & Jager, 2017) . The channel is made up of the following; 

Merchant wholesalers Agent Middlemen Facilitating agents 

The channels strategy also exhibits various levels. They include; producers, agents and industrial buyers. The producer, GE Middle East Company, manufactures products and sells them to the customers through the agents who resell the goods to Industrial buyers. GE Middle East Company produces goods distributed to various retail outlets in different parts of Asia, Africa, the Middle East, Asia and Europe. The various channel members engage to achieve economies of scale by contributing to the firm's operations. 

Question 5 

Channel strategy relates to the target market's buying behavior by defining the relevant market, analysis of selective and primary demand, market segments, competition, and target market. The channels in place help define relevant markets where the consumers use a particular firm's products before engaging in contractual VMS. Various parties in channel strategy involve assessing the influence related to a particular product in a certain market. For example, a region with high consumers of Apple phones can lead to the development of wholesalers and retail shops that supply Apple phones from the producers, thus influencing the target population's buying behavior. Analysis of the selective and primary demand of a particular product also results in the relationship between channel strategy and target market's buying behavior ( Mullins et al., 2013) . The channel members help in the segmentation of industrial and consumers' demands based on geographic, behavioral, psychographic and demographic. The channel members developed will result in the distribution of products to specific customers based on the categories mentioned above. Assessment of market segments also leads to the development of a relationship between the target market's buying behavior and channel strategy. Channel strategy involves evaluating the reason for purchasing the product by the consumers, benefits sought and their frequency of product consumption. Similarly, the distribution channels consider the awareness and willingness of consumers to purchase the product. The distributors also consider purchasing function, purchasing criteria process of the organization and prior relationship between the channel members and potential customers ( Jurše & Jager, 2017) . The competition factor involves the assessment of the market drivers for both the customer and channel members. Notably, the channels focus on segmentation strategies such as homogeneity or heterogeneity perspective and the product's price. The channels sell to their customers based on prevailing drivers in the market. 

References 

Jurše, M., & Jager, J. (2017). Marketing channel strategy management in international markets.  International Journal of Innovation and Learning ,  21 (2), 127-148. https://www.inderscienceonline.com/doi/abs/10.1504/IJIL.2017.081935 

Mullins, J. W., Walker, O. C., Boyd, H. W., & Larréché, J. C. (2013).  Marketing management: A strategic decision-making approach . New York: McGraw-Hill.