Channels of distribution
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Channels of distribution






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Channels of distribution Channels of distribution Presentation Transcript

  • Channels of DistributionChannels of Distribution And there role in marketing
  • Marketing channels and distributionMarketing channels and 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.
  • Importance of channelsImportance 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.
  • Classification of channels/channelClassification of channels/channel levelslevels Channels of distribution 0-level 1-level 2-level 3-level
  • 0-level 1-level 2-level 3-level manufacture consumer Manufacturer manufacturer manufacturer retailer consumer wholesaler retailer consumer wholesaler jobber retailer consumer
  • intermediariesintermediaries 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.
  • Types of intermediariesTypes of intermediaries 1. Merchant middlemen i. Wholesalers ii. Retailers 2. Agents i. Brokers ii. Commission agents iii. Selling agents iv. Factors v. Clearing agents vi. auctioneer
  • wholesalerswholesalers  Functions of wholesalers: 1) Assembling and buying. 2) Warehousing. 3) Transporting. 4) Financing. 5) Risk bearing. 6) Grading, packing and packaging. 7) Dispersing and selling. 8) Providing market information.
  • Services of wholesalersServices of wholesalers 1.Service to manufacturers-  Economies of scale.  Saving in time and trouble.  Better use of capital.  Price stabilization. 2. Services to retailers- i. Saving in cost and time. ii. Economy in transport an packing. iii. Better use of limited factors. iv. Expert knowledge.
  • Types of wholesalersTypes of wholesalers Full function Converter Drop shipper
  • retailersretailers Retailing includes all activities directly related to the sale of goods and services to the ultimate consumer for personal or non-personal use.
  • functionsfunctions 1. Buying and assembling. 2. Warehousing. 3. Selling. 4. Grading and packing. 5. Financing. 6. Advertising.
  • Services of retailerServices of retailer  To manufacturer and wholesaler 1. Offer opportunity. 2. A big relief. 3. Provision of information. 4. Reduce the risk of loss.  To the consumers 1. Largest choice. 2. Relief from storage. 3. Extra service. 4. Supply of information.
  • AgentAgent middlemenmiddlemen Agent middlemen are those channel components who help in the transfer of goods from the hands of ultimate users without acquiring the ownership of these goods. They operate for a commission.
  • Types of middle agentsTypes of middle agents 1. Commission agents. 2. Brokers. 3. Factors. 4. Auctioneers. 5. Selling agents. 6. Clearing agents.
  • Factors governing the choice ofFactors governing the choice of channel of distributionchannel of distribution FACTORS Products factors Market factors Institutional factors Unit factors Environmental factors
  • PRODUCT FACTORSPRODUCT FACTORS 1. Product nature. 2. Technical nature: simple or complex. 3. The length of product line. 4. The market position: market position of manufacturer.
  • The market forces-The market forces- 1. The existing market structure. 2. The nature of purchase deliberations. 3. Availability channel. 4. competitior's channels.
  • Institutional factorsInstitutional factors 1. The financial ability of channel members. 2. The promotional ability of channel members. 3. The post-sale service ability.
  • Unit factorsUnit factors 1. The company’s financial position. 2. The extent of market control desired. 3. The company reputation. 4. The company marketing policies.
  • Factors governing the choice ofFactors governing the choice of intermediaryintermediary 1. Economic factors 2. The legal restrictions. 3. Fiscal policies. 4. The financial position. 5. The facilities available.
  • Thank youThank you A presentation by- Raveena kaushal Bba 3rd sem Soms bhaddal