Jil's pp on distribution channels

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ITS ABOUT ROLE DISTRIBUTION CHANNELS IN MARKETING.

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Jil's pp on distribution channels

  1. 1. DISTRIBUTION CHANNELS! BY JIL KHAN
  2. 2. DISTRIBUTION CHANNELS <ul><li>DEFINITION: </li></ul><ul><li>“ Distribution channels are systems of economic institutions through which a producer of goods delivers them into the hands of their users.” </li></ul>
  3. 3. INTERMEDIARIES <ul><li>Intermediaries or middlemen are those individuals or institutions within the channels which help in the transfer of goods either by taking its title or just by helping in negotiation of the sale in the capacity of an agent or broker. </li></ul><ul><li>Various types of intermediaries are; </li></ul><ul><li>Wholesalers. </li></ul><ul><li>Retailers. </li></ul><ul><li>Agents/brokers. </li></ul><ul><li>Distributors. </li></ul><ul><li>Facilitating agents. </li></ul><ul><li>Dealers. </li></ul>
  4. 4. TYPES OF CHANNELS <ul><li>There are basically two types of channels i.e., </li></ul><ul><li>Direct marketing channels. </li></ul><ul><li>Indirect marketing channels. </li></ul>
  5. 5. DIRECT MARKETING CHANNEL <ul><li>Direct marketing channels are those which do not have any intermediaries, goods directly goes from the producers to the consumers. </li></ul>
  6. 6. INDIRECT MARTKETING CHANNELS <ul><li>Indirect marketing channels are those which do have any of the intermediaries, either one level, two or any possible level as may required by it. Here goods aren’t directly transferred to the consumers but any of the middlemen is involved. </li></ul>
  7. 7. Indirect channels for consumer markets
  8. 8. Indirect channels for business markets
  9. 9. LEVELS OF INDIRECT MARKETING CHANNELS
  10. 12. DISTRIBUTION CHANNEL
  11. 13. IMPORTANCE OF DISTRIBUTION CHANNELS <ul><li>There are many functions which a distribution channel performs, among them the most common are; </li></ul><ul><li>Information. </li></ul><ul><li>Promotion. </li></ul><ul><li>Financing. </li></ul><ul><li>Risk taking. </li></ul><ul><li>Helps in boosting production. </li></ul>
  12. 14. <ul><li>Pricing. </li></ul><ul><li>Stabilizing the prices. </li></ul><ul><li>Communication. </li></ul><ul><li>Matching demand and supply. </li></ul><ul><ul><li>Physical distribution. </li></ul></ul><ul><ul><li>Contractual. </li></ul></ul><ul><ul><li>Termination. </li></ul></ul>
  13. 15. CONVENTIONAL AND VERTICAL MARKETING SYS <ul><li>CONVENTIONAL MAKETING SYSTEM. </li></ul><ul><li>VERTICAL MARKETING SYSTEM. </li></ul><ul><ul><li>CORPORATE VMS. </li></ul></ul><ul><ul><li>CONTRACTUAL VMS. </li></ul></ul><ul><ul><li>ADMINISTERED VMS. </li></ul></ul>
  14. 16. CONVENTIONAL VS VERTICAL MS
  15. 17. OTHER SYSTEMS OF DISTRIBUTION <ul><li>HORIZONTAL MARKETING SYSTEM. </li></ul><ul><li>MULTICHANNEL DISTRIBUTION. </li></ul>
  16. 18. CHANNEL DESIGN DECISION <ul><li>A Manager, before designing a channel, follows the following steps. </li></ul>
  17. 19. CHANNEL MANAGEMENT <ul><li>This is how a manager manages the channels. </li></ul>
  18. 20. MARKETING LOGISTICS <ul><li>It involves entire supply chain management i.e., managing upstream and downstream value-added flows of materials, final goods and related information among suppliers, the company, resellers and final consumers. </li></ul><ul><li>Major logistic functions are; </li></ul><ul><li>Warehousing. </li></ul><ul><li>Transportation. </li></ul><ul><li>Inventory management. </li></ul><ul><li>Logistic information. </li></ul>
  19. 21. MARKETING LOGISTICS SHOWN

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