The marketing channel structure: A case of chemical industry company

Abstract

The subject of the research are peculiarities of marketing channels structure of industrial company that operates in the chemical industry. The main research activities were focused on the basis of Ukrainian power and chemical association PJSC “Sumykhimprom”. The methodical approach of the study is based on analytic and descriptive approach and is aimed at providing a case study. Thus, the goal of the study is to provide an empirical study on auditing the company’s marketing channel system and on identifying the current status of marketing channels members. The study suggests that marketing channels function effectively when taking into account the interests of all marketing channel members (manufacturer, intermediaries, end users). The choice of a marketing channel depends on the company's planned sales and profits, available resources, positioning strategies, the intensity of geographical coverage, industry specifics. Marketing channels of PJSC “Sumykhimprom” are grouped in terms of distribution geography into three groups: 1) distributors in the European market; 2) distributors in Ukrainian market and in neighboring countries; 3) distributors in the market of distant foreign countries. The research results allow to form the optimal structure of marketing channels, which simultaneously takes into account the interests of the manufacturer, as well as the consumer. Recommendations to transform the marketing channels structure of PJSC “Sumykhimprom” are formed.