Marketing : Concepts and Fundamentals
-
Upload
parag-vyas -
Category
Marketing
-
view
81 -
download
1
Transcript of Marketing : Concepts and Fundamentals
![Page 1: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/1.jpg)
Marketing Management
![Page 2: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/2.jpg)
Marketing Management
• After this presentation you will understand:
• Concept of Marketing Management• Marketing Mix• Product Policy• New Product Development• Product Life Cycle• Channels of Distribution
![Page 3: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/3.jpg)
Market=?
• Market means that customers who have purchased or want to purchase a certain product or service.
• Market = population+ Purchasing Power + Purchasing Need
![Page 4: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/4.jpg)
Market=?
• Consumer Market• Business Market• Global Market• Nonprofit and Government Markets
![Page 5: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/5.jpg)
Marketing=?
• Selling?• Advertising?• Promotions?• Making products available in stores?• Maintaining inventories?
Yes! All of the above, plus much more!
![Page 6: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/6.jpg)
Marketing=?
• Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.
- Philip Kotler
![Page 7: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/7.jpg)
Marketing=? & Marketing Management=?
• Is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals.
• Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.
![Page 8: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/8.jpg)
The Marketing ProcessA Five-Step Process
1. Understand the marketplace and customer needs and wants
2. Design a customer-driven marketing strategy
3. Construct a marketing program that delivers superior value
4. Build profitable relationships and create customer delight
5. Capture value from customers to create profits and customer quality
![Page 9: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/9.jpg)
Simple Marketing System
Industry(A collection
of sellers)
Market(A collection
of Buyers)
Goods/Services
Money
Communication
Information
![Page 10: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/10.jpg)
Core Marketing Concepts
![Page 11: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/11.jpg)
Understanding the Core Concepts
• Needs, wants, and demands
• Marketing offers: including products, services and experiences
• Value and satisfaction • Exchange, transactions
and relationships• Markets
• Need– State of felt deprivation– Example: Need food
• Wants– The form of needs as
shaped by culture and the individual
– Example: Want a Big Mac• Demands
– Wants which are backed by buying power
![Page 12: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/12.jpg)
Understanding the Core Concepts
• Needs, wants, and demands
• Marketing offers: including products, services and experiences
• Value and satisfaction • Exchange, transactions
and relationships• Markets
• Marketing offer– Combination of
products, services, information or experiences that satisfy a need or want
– Offer may include services, activities, people, places, information or ideas
![Page 13: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/13.jpg)
Understanding the Core Concepts• Needs, wants, and
demands• Marketing offers:
including products, services and experiences
• Value and satisfaction • Exchange, transactions
and relationships• Markets
• Value– Customers form
expectations regarding value
– Marketers must deliver value to consumers
• Satisfaction– A satisfied customer will
buy again and tell others about their good experience
![Page 14: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/14.jpg)
Understanding the Core Concepts
• Needs, wants, and demands
• Marketing offers: including products, services and experiences
• Value and satisfaction • Exchange, transactions and
relationships• Markets
• Exchange– The act of obtaining a
desired object from someone by offering something in return
– One exchange is not the goal, relationships with several exchanges are the goal
– Relationships are built through delivering value and satisfaction
![Page 15: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/15.jpg)
Understanding the Core Concepts
• Needs, wants, and demands
• Marketing offers: including products, services and experiences
• Value and satisfaction • Exchange, transactions
and relationships• Markets
• Market– Set of actual and
potential buyers of a product
– Marketers seek buyers that are profitable
![Page 16: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/16.jpg)
Marketing strategies
• Meaning:• “Marketing Strategy is a set of specific ideas
and actions that outline and guide decisions on the best or chosen way to create, distribute, promote, and price a product or service(Manages the marketing mix variables).”
• There are over 52 and more types marketing strategies.
• We’ll see some of them from next slide onwards…
![Page 17: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/17.jpg)
Types of Marketing Strategies
• Cause Marketing: Find a cause both your customers and your company care about. It can create magic for your business.
![Page 18: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/18.jpg)
• Relationship Marketing: Focus on building relationships with your customers instead of always exclusively trying to sell them something (called transactional marketing). Customers who love your brand more will also spend more money with your brand.
Many traditional retailers have found thisto be true. Walgreens has seen thatcustomers who buy from all of theirpurchasing channels (store, web, mobile,etc.) buy up to six times more than theaverage customer that only buys in theirstore.
![Page 19: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/19.jpg)
• Offline Marketing: Find new ways of
• integrating offline marketing with new
• technologies to create more engaging
• customer experiences.The Coca-Cola company has createvending machines that invitecustomers to hug them. Thiscontinues to tie the Coca-Cola brandto the core emotion of happiness,but also invites customers toexperience the real product offline.
![Page 20: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/20.jpg)
• Digital Marketing: Use various digital devices
• like smartphones, computers, tablets, or digital
• billboards to inform customers and business
• partners about your products.
![Page 21: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/21.jpg)
• Scarcity Marketing: Where appropriate,
• consider making your products accessible
• to only a few customers.
• And many more..(2 lectures is also not enough…)
Rolls-Royce’s release of their Year ofthe Dragon Collection edition of thePhantom sold quickly. Although thecost of the car was higher than otherluxury cars, the scarcity drove thedesire and the price.
![Page 22: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/22.jpg)
Marketing mix
• Definition of Marketing mix from Economic Times:– “The marketing mix refers to the set of
actions, or tactics, that a company uses to promote its brand or product in the market. The 4Ps make up a typical marketing mix - Price, Product, Promotion and Place. However, nowadays, the marketing mix increasingly includes several other Ps like Packaging, Positioning, People and even Politics as vital mix elements.”
![Page 23: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/23.jpg)
Marketing mix
• The Marketing Mix is one of two interrelated components of strategy
• Marketing Mix strategy is choosing and implementing the best possible course of action to attain the organization’s long-term objectives and gain competitive edge.
![Page 24: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/24.jpg)
Marketing mix
• Price: refers to the value that is put for a product. It depends on costs of production, segment targeted, ability of the market to pay, supply - demand and a host of other direct and indirect factors. There can be several types of pricing strategies, each tied in with an overall business plan. Pricing can also be used a demarcation, to differentiate and enhance the image of a product.
![Page 25: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/25.jpg)
• Product: refers to the item actually being sold. The product must deliver a minimum level of performance; otherwise even the best work on the other elements of the marketing mix won't do any good.
Marketing mix
![Page 26: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/26.jpg)
• Place: refers to the point of sale. In every industry, catching the eye of the consumer and making it easy for her to buy it is the main aim of a good distribution or 'place' strategy. Retailers pay a premium for the right location. In fact, the mantra of a successful retail business is 'location, location, location'.
Marketing mix
![Page 27: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/27.jpg)
• Promotion: this refers to all the activities undertaken to make the product or service known to the user and trade. This can include advertising, word of mouth, press reports, incentives, commissions and awards to the trade. It can also include consumer schemes, direct marketing, contests and prizes.
Marketing mix
![Page 28: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/28.jpg)
Marketing Mix
• Promotions has four components called the Promotions Mix as follows:
• Advertising – to effectively inform and persuade the target market
• Public Relations – to offer a positive image of the company and the brand
• Selling – to get the customers buy
• Sales Promotions – to convince customers to buy immediately
![Page 29: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/29.jpg)
Product Policy
• Product policies are the general rules set by the management.
• Product policy guides the marketing activities of the firm and helps it to make the right products to the consumers.
• Product policy is concerned with defining type, volume and timing of products a company offers for sale.
![Page 30: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/30.jpg)
Product Policy
• A product policy generally covers the follows:
Product planning and development Product line Product mix Product branding Product positioning Product packaging
![Page 31: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/31.jpg)
New-Product Development Strategy
• Strategies for Obtaining New-Product Ideas:
Acquisition of companies, patents, licenses
Original products, improvements, modifications
![Page 32: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/32.jpg)
• To suit the changes in customers needs• To adopt new technological advances
and avoid obsolesce• To match competition• Product Life Cycle Concept• To bring down the cost
Reasons for introducing new products
![Page 33: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/33.jpg)
Major Stages in New-Product Development
• Idea generation• Idea screening• Concept development and testing• Marketing strategy development• Business analysis• Product development• Test marketing• Commercialization
![Page 34: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/34.jpg)
• Ideas can be generate from the following :
Company employeesCustomersCompetitorsDistributorsSuppliers
Idea Generation
![Page 35: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/35.jpg)
Idea Screening
• Process to spot good ideas.• Develop system to estimate: market
size, product price, development time and costs, manufacturing costs, and rate of return.
• Evaluate these findings against set of company criteria for new products.
![Page 36: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/36.jpg)
Concept Development and Testing
• Product Idea: idea for a possible product that the company can see itself offering.
• Product Concept: detailed version of the idea stated in meaningful consumer terms.
• Product Image: the way consumers perceive an actual or potential product.
![Page 37: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/37.jpg)
Marketing Strategy Development
• Part One Describes:– The target market, planned product
positions, sales, market share, and profit goals
• Part Two Outlines the First Year’s:– Product’s planned price, distribution,
and marketing budget• Part Three Describes Long-Run:
– Sales and profit goals, marketing mix strategy
![Page 38: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/38.jpg)
Business Analysis
• Involves a review of the sales, costs, and profit projections to assess fit with company objectives.
• If yes, move to the product development phase.
![Page 39: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/39.jpg)
Product Development
• Develop concept into physical product
• Calls for large jump in investment• Prototypes are made• Prototype must have correct
physical features and convey psychological characteristics
![Page 40: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/40.jpg)
Test Marketing
• Product and program introduced in more realistic market setting.
• Not needed for all products.• Can be expensive and time
consuming, but better than making major marketing mistake.
![Page 41: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/41.jpg)
Commercialization
• Must decide on timing (i.e., when to introduce the product).
• Must decide on where to introduce the product (e.g., single location, state, region, nationally, internationally).
• Must develop a market rollout plan.
![Page 42: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/42.jpg)
Organizing New-Product Development
• Sequential Approach: each stage completed before
moving to next phase of the project.
• Simultaneous Approach: Cross-functional teams work
through overlapping steps to save time and increase effectiveness.
![Page 43: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/43.jpg)
The Product Life Cycle
• Introduction• Growth• Maturity• Saturation• Decline
![Page 44: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/44.jpg)
Introduction Stage of PLC
The Introduction stage is probably the most important stage in the PLC. In fact, most products that fail do so in the Introduction stage.
This is the stage in which the product is initially promoted.
Public awareness is very important to the success of a product.
If people don't know about the product they won't go out and buy it.
![Page 45: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/45.jpg)
Features
• Sales: low• Costs: high cost per customer• Profits: negative• Marketing Objective: create product
awareness and trial• Product: offer a basic product• Price: use cost-plus formula• Distribution: build selective distribution• Promotion: heavy to entice product trial
![Page 46: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/46.jpg)
Products presently in introduction stage
HOLOGRAPHIC PROJECTIONS
Minority Report Gloves
![Page 47: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/47.jpg)
Growth Stage of PLC
• If the company is lucky enough to get their product out of the Introduction stage, then enter this stage.
• The Growth stage is where the product starts to grow.
• In this stage a very large amount of money is spent on advertising.
• (because the company want to concentrate of telling the consumer how much better the product is than the competitors' products.)
![Page 48: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/48.jpg)
Features
• Sales: rapidly rising• Costs: average cost per customer• Profits: rising• Marketing Objective: maximize market
share• Product: offer extension, service, warranty• Price: penetration strategy• Distribution: build intensive distribution• Promotion: reduce to take advantage of
demand
![Page 49: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/49.jpg)
Products presently in growth stage
BLU-RAY tablet pc’s
![Page 50: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/50.jpg)
Maturity Stage of PLC
• During this stage sales grow at a very fast rate and then gradually begin to stabilize.
• The key to surviving this stage is differentiating the product from the similar products offered by the competitors.
• the company must make the product stand out among the rest Due to the fact that sales are beginning to stabilize.
![Page 51: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/51.jpg)
Features
• Sales: peak• Costs: low cost per customer• Profits: high• Marketing Objective: maximize profits while
defending market share• Product: diversify brand and models• Price: match or best (competitors)• Distribution: build more intensive
distribution• Promotion: Increase to encourage brand
switching
![Page 52: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/52.jpg)
Three ways to be stand there in maturity:
1. Modifying the Market: Increase the consumption of the current product.
• How?– Look for new users and market
segments– Reposition the brand to appeal to
larger or faster-growing segment– Look for ways to increase usage
among present customers
![Page 53: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/53.jpg)
2. Modifying the Product: Changing characteristics such as quality, features, or style to attract new users and to inspire more usage.
• How?– Improve durability, reliability,
speed, taste– Improve styling and attractiveness– Add new features– Expand usefulness, safety,
convenience
Three ways to be stand there in maturity:
![Page 54: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/54.jpg)
Three ways to be stand there in maturity:
3. Modifying the Marketing Mix: Improving sales by changing one or more marketing mix elements( price, place, promotion and product)
• How?– Cut prices– Launch a better ad campaign– Move into larger market channels– Offer new or improved services to
buyers
![Page 55: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/55.jpg)
Products presently in maturity stage
![Page 56: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/56.jpg)
Saturation
• This is a period of stability. The sales of the product reach the peak and there is no further possibility to increase it.
• This stage is characterized by:– Saturation of sales (at the early part of
this stage sales remain stable then it starts falling).
– It continues till substitutes enter into the market.
– Marketer must try to develop new and alternative uses of product.
![Page 57: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/57.jpg)
Decline Stage of PLC
• This is the stage in which sales of the product begin to fall.
• Either everyone that wants to has bought the product or new, more innovative products have been created that replace that product.
• Many companies decide to withdrawal their products from the market due to the downturn.
• The only way to increase sales during this period is to cut your costs reduce your spending.
![Page 58: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/58.jpg)
Features
• Sales: declining• Costs: high cost per customer• Profits: declining• Marketing Objective: reduce
expenditures• Product: phase out weak items• Price: cut price• Distribution: selective--phase out
unprofitable outlets• Promotion: reduce to minimal level
![Page 59: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/59.jpg)
Products presently in decline stage
![Page 60: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/60.jpg)
Product Life Cycle through graph
![Page 61: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/61.jpg)
Summary of Product Life Cycle
![Page 62: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/62.jpg)
Channels of Distribution
• Marketing channels are set of interdependent organizations involved in the process of making the product or service available for use or consumption.
• They are the set of pathways a product or service follow after production.
![Page 63: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/63.jpg)
Importance of channels
• Decisions about the marketing channels are among the most critical management decisions.
• They just not serve markets, they make market.
• Channels chosen affects all other marketing decisions.
• Firm’s sale depends upon training and motivation of dealers.
![Page 64: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/64.jpg)
Classification of channels/channel levels
Channels of distribution
0-Level 1-Level 2-Level 3-Level
![Page 65: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/65.jpg)
Channels of Distribution
0-Level
manufacturer
Consumer
1-Level
manufacturer
Consumer
Retailer
2-Level
manufacturer
Consumer
Retailer
Wholesaler
3-Level
manufacturer
Consumer
Wholesaler
Retailer
Jobber
![Page 66: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/66.jpg)
Intermediaries
• Intermediaries are the middlemen and signify those individuals in the channels that either take title to take goods and sell at profit.
• They are directly involved in process of flow of goods from manufacturer to consumer.
![Page 67: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/67.jpg)
Types of intermediaries
1. Merchant middlemeni. Wholesalers
ii. Retailers2. Agents
iii. Brokersiv. Commission agents
v. Selling agentsvi. Factors
vii. Clearing agentsviii. auctioneer
![Page 68: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/68.jpg)
Factors governing the choice of channel of distribution
Factors
Product
factorsMarket factors
Environment
al factors
Institutional
FactorsUnit
Factors
![Page 69: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/69.jpg)
Product factors
• Product nature.• Technical nature: simple or complex.• The length of product line.• The market position: market position of
manufacturer.
![Page 70: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/70.jpg)
The market factors
• The existing market structure.• The nature of purchase deliberations.• Availability channel.• competitor's channels.
![Page 71: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/71.jpg)
Institutional factors
• The financial ability of channel members.
• The promotional ability of channel members.
• The post-sale service ability.
![Page 72: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/72.jpg)
Unit factors
• The company’s financial position.• The extent of market control desired.• The company reputation.• The company marketing policies.
![Page 73: Marketing : Concepts and Fundamentals](https://reader034.fdocuments.us/reader034/viewer/2022042723/58f2b1801a28ab53508b45df/html5/thumbnails/73.jpg)
Thank You