Core Concepts of Marketing

FLOWSINMARKETINGCHANNELS 255

FlowsinMarketingChannels

Onetraditionalframeworkthatha~beenusedtoexpressthechannelmechanismisthecon-

ceptofflow.Theseflows,toucheduponinFigure 10 .2,reflectthemanylinkagesthattie

channelmembersandotheragenciestogetherinthedistributionofgoodsandservices.From

theperspectiveofthechannelmanager,therearefiveimportantflows.

1. Productflow


2. Negotiationflow


3. Ownershipflow


4. Informationflow


5. Promotionflow
   TheseflowsareillustratedforPerrierWaterinFigure10.2.
   Theproductflowrefers tothemovementofthephy~icalproductfromthemanufac-
   turerthroughall thepartieswhotakephysicalpossessionoftheproductuntilit reachesthe
   ultimateconsumer.ThenegotiationflowencompassesUleinsti tutionsthatareassociated
   withtheactualexchangeprocesses.Theownershipflow:.;howsthemovementoftitlethrough
   thechannel.informationflowidentifiesthe i ndividuals whoparticipateintheflowofinfor-
   mationeitherupordownthechann,,:1.Finally, thepromotionflow~eferstotheflowof

Product

flow

Manufacturer

Negotiation

flow

Manufacturer

Ownership

flow

Manufacturer

Information

flow

Promotion

flow

I

I

I

I

t

Advertising

Agency

FIGURE10-2 Fiveflowsinthemarketingchanne:forPerrierWater

Source:BertRosenbloom,MarketingChannels:AManagementView,DrydenPress,Chicago,1983,p. 11.'