According to Philip
Kotler "A marketing channel performs the work
of moving goods from producers to consumers. It overcomes
the time place and possession gaps that separate goods
and services from those who need or want them."
Member of the marketing channel perform a number of
• They gather information about potential and
current customer, competitors, and actors and forces
in the marketing environment.
• They develop and disseminate persuasive communications
to stimulate purchasing.
• They reach agreement on price and other terms
so that transfer of ownership or possession can be
• They place orders with manufacturers.
• They acquire the funds to finance inventories
at different levels in the marketing channel.
• They assume risk connected with carrying
out channel work.
• They provide for the successive storage and
movement of physical products.
• They provide for buyers payment of their
bills through banks and other financial institutions.
• They oversee actual transfer of ownership
from one organizations or person to another
This means in clear text that it involves all the
transactions that happen between the parties, all
from the supplier on the ‘bottom' and the customer
at the ‘top'.
As we all can to manage the MC is a very complex
task involving five different flows: Physical flow,
Title flow, payment flow, Information flow and promotion
flow. In today's world we have multinational corporations
who handle these tasks internally in one big system
and then we have a small firms that try to communicate
with each other as good as they can but have no chance
to really compete with the big players. That is where
our eMC system and its engineering come in. By using
our WorkACE™ as a platform we can establish
a network of corporations working under one brand
(e.g. Coolex®) and perform all the functions the
multinational corporations do without the huge costs
involved. This makes is possible for small organizations
to act as big.
With an electronic Marketing Channel system an installation
company can buy his products from anybody in the same
network without limitations. This means that if he
has the money to finance a larger shipsment from a
manufacturer then he places a private order with direct
factory deliver to his premises. If he does not have
the needed funds or he can achieve greater cost saving
by ordering bigger quantities then he can start a
join venture project with another reseller near him
and together make the order. They can also work together
with a wholesaler or even start their joint whole
selling business. New products can be developed the
same way or licenses acquired from manufacturers residing
on the other side of the planet who either are or
are not members of the eMC network.
By connecting smaller private companies through an
eMC to each other the following things will happen:
• Each of the individual companies will be
more attractive to the customers because they belong
to a national or international network of hundreds
of similar suppliers and resellers.
• The cost of the products will be much lower
and the margins higher for the network members.
• New members can join and old ones can resign
easily from the network. This means that there are
no physical limitations on the growth of the network.
• Special stakeholders like customers, suppliers,
service providers and third party companies, can easily
be given access to some or all the network members
and their projects.
• Suppliers prices can be negotiated in groups
instead of as individual (small) clients
• Innovations and ideas can be shared fast
and further developed by a large group of people.
Also R&D costs can be shared and productive ideas
will benefit the participants. Today's many small
firma sit on these ideas but they never materialize
because of lack of time and money.
• Marketing and promotion ideas and costs can
and will be shared. Local or regional projects are
easy to start and finish with limiting access to only
certain members. Costs will be shared among the ones
who benefit. Previous ideas can be either sold or
leased to other groups in the network .e.g. overseas.
Coolex® is an example of such networks. Any organization who wants to build or
transfer his old CM systems into out modern model
is a potential client for our eMCE