Presented by:- Manju verma M.B.A. (2 semester...
Transcript of Presented by:- Manju verma M.B.A. (2 semester...
Contents :- Meaning of Channel Distribution.
Channel Functions
Channels of distribution for consumer products and industrial
products.
Channel designing process.
Factors influencing the channel selection.
Intensity of market coverage.
Channel Management.
Meaning:-“Marketing channels are the combination of agencies throughwhich the seller, who is often, though not necessarily the
manufacturer, markets his product to the ultimate User.”
John A. Howard
Channel Functions These functions should be assigned to the channel members who
can add most value for the cost
Contact Financing
Information
Risk Taking
Promotion
Matching
Negotiation
Physical
Distribution
Manufacturer
Retailer
Customer
Wholesaler
T
W
O
L
E
V
E
L
C
H
A
N
N
E
L
Manufacturer
Retailer
Customer
Wholesaler
Agent
T
H
R
E
E
L
E
V
E
L
C
H
A
N
N
E
L
Channel Behavior
Identify target consumer
Determining consumer buying habits for the type of goods
Locate potential customer geographically
Pinpoint channel alternatives
E valuate channel alternatives
Select channel members
Factors influencing the channel selection
Product or Market characteristics factors
Company characteristic factors
Middleman consideration.
Environmental characteristics factors.
Number of customers
Cost of the product
Type of the product
Degree of channel control desired
Financial Resources
Ability of Management
Services provided by the middleman
Availability of desired middleman
Attitude of middleman towards
manufacturer’s Policy
Intensity of Market coverage
Intensive Selective Exclusive
Distribution
through every
reasonable
outlet in a
market
Distribution
through multiple,
but not all,
reasonable outlet
in the market
Distribution
through single
wholesaling
middlemen in
a market
The Relationship between types of product, level of shopping effort, and intensity of distribution
Typ
e o
f p
rod
uct
Specialty
Goods
Shopping
Goods
Convenience
Goods
Level of shopping effort
Little or no
Effort
Some
Effort
Much
Effort
Vertical Marketing System
"A marketing channels in which manufacturing and the successive
stages of distribution are operated as a unified system.”
Types of systems Control maintained by Examples
Administered Economic Power Contract Amul Dairy Products,
P&G Products.
Contractual
1. Wholesaler sponsored
2. Retailer sponsored
3. Manufacturer
sponsored
4. Service company
sponsored
1. Stock owned by
wholesaler.
2. Stock owned by
retailers.
3. Franchise system.
4. Marketers of services.
Retail chain like Naaz in
Delhi,
Soft drink bottles
Corporate Ownership Singer (Sewing Machines)
Good Year (Tyers)
Oil Companies
Horizontal Marketing System
Horizontal Conflict occurs among firms at the same level of the channel
(e.g., retailer to retailer).