Selecting and Managing Marketing Channels
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Selecting and Managing Marketing Channels

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Presentation for Marketing Management subject, Master in Management Technological University of the Philippines - Manila.

Presentation for Marketing Management subject, Master in Management Technological University of the Philippines - Manila.

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  • Marketing Channel is a interorganizational network of institutions comprised of agents, wholesalers, and retailers.
  • When there are intermediaries between manufacturer and customer.
  • These are the factors to be considered before choosing a suitable channel of distribution.
  • What does “the channel” do?

Selecting and Managing Marketing Channels Selecting and Managing Marketing Channels Presentation Transcript

  • MARKETING CHANNELS Selecting and Managing RONALDO C. MARIN, JR. 1rcmarin81@yahoo.com Master in Management
  • Good Morning! Ronaldo Marin, Jr. Springboard Activity Connect the Dots I will be the class reporter for today 2rcmarin81@yahoo.com
  • 4 straight lines Connect all nine (9) dots without lifting the writing instrument. Springboard Activity Connect the Dots 3rcmarin81@yahoo.com
  • What is the learning point here? Think Beyond-the-box 4rcmarin81@yahoo.com
  • And that will be the subject of my presentation today. Do not confine ourselves on the standard sometimes we need to think outside-the-box. Look for an alternative ways to solve our problems. 5rcmarin81@yahoo.com
  • All about - MARKETING CHANNELS Selecting and Managing How the producer can put his products in the hands of his customers 6rcmarin81@yahoo.com
  • Vocabulary: PLACE Marketing Channels Channels of Distribution Trade Channel Distribution System More or less mean the same thing. 7rcmarin81@yahoo.com
  • So, let’s get started 8rcmarin81@yahoo.com
  • Marketing Channels Selecting and Managing (Chapter 10 – Part 2) 9rcmarin81@yahoo.com
  • Terminal objective rcmarin81@yahoo.com 10
  • Terminal objective 11rcmarin81@yahoo.com To understand the various aspects of Marketing Channel. After this oral report, the class should be able to:
  • Any activity involved in the production and distribution of goods and services, Aimed to satisfy the needs and wants of their customers. rcmarin81@yahoo.com 12 Marketing Business
  • What is the primary objective of all business enterprises? rcmarin81@yahoo.com 13
  • PROFITABILITY by selling goods and services to ultimate consumers or users rcmarin81@yahoo.com 14
  • rcmarin81@yahoo.com 15 Channels of distribution (Marketing Channels)
  • Channels of distribution (Marketing Channel) rcmarin81@yahoo.com 16 PRODUCER ConsumersChannel The pipeline from producer to consumer
  • It is the distribution network through which a producer puts his product in the hands of actual users. rcmarin81@yahoo.com 17 Channel of distribution
  • Classification of Channels of distribution rcmarin81@yahoo.com 18
  • rcmarin81@yahoo.com 19 Producers of consumer products and services Ultimate users / consumers DIRECT CHANNEL
  • Direct Channel When manufacturer and customer deal directly with each other. There is NO MIDDLEMAN present in this type of channel. rcmarin81@yahoo.com 20
  • Samples of businesses involves in direct selling Avon Sarah Lee Boardwalk rcmarin81@yahoo.com 21
  • rcmarin81@yahoo.com 22 Producers of consumer products and services Ultimate users / consumers Retailer Wholesaler Retailer Agent Wholesaler Retailer
  • Companies producing goods on a large scale. Usually, they sells goods through middlemen. rcmarin81@yahoo.com 23 Indirect Channel Wholesalers Retailers
  • Wholesaler acts as a middlemen in the channel of distribution as he buys goods in large quantity from producer and sells these to retailers in small quantities. rcmarin81@yahoo.com 24 Wholesalers
  • Retailers buys goods from wholesaler and sells them directly to consumers. Thus he acts as a direct link between the wholesaler and consumers. rcmarin81@yahoo.com 25 Retailers
  • So, the two main types of channels are: 1 rcmarin81@yahoo.com 26 Direct Channel
  • rcmarin81@yahoo.com 27 2Indirect Channel
  • Selecting MARKETING CHANNEL Is very crucial rcmarin81@yahoo.com 28
  • Who’s your customers? What is your competitive advantage? Direct approach. Indirect approach because direct approach is very expensive in high volume products . rcmarin81@yahoo.com 29
  • Factors to be considered before selecting a suitable channel of distribution. rcmarin81@yahoo.com 30
  • Considerations rcmarin81@yahoo.com 31 Product
  • Considerations rcmarin81@yahoo.com 32 Market
  • Considerations rcmarin81@yahoo.com 33 Company
  • Factors to be considered before choosing a suitable channel of distribution. rcmarin81@yahoo.com 34 ProductMarketCompany Selecting Marketing Channel
  • Functions Performed by Middlemen They play a significant role in company’s marketing channel. rcmarin81@yahoo.com 35 Again,
  • rcmarin81@yahoo.com 36 Value Added Transactional Function Logical Function Facilitation Function Marketing Channel Functions Performed by Middlemen. - Risk - Marketing - Administration - Storing - Sorting - Transporting - Financing - Information - After- sales
  • How Intermediaries Minimize Transactions rcmarin81@yahoo.com 37 Let’s see . . .
  • Refrigerator rcmarin81@yahoo.com 38 Product:
  • rcmarin81@yahoo.com 39 Brands of Refrigerator
  • JOHN PAUL GEORGE RINGO 40 Contacts with no middlemen 4 Producers x 4 Buyers = 16 contacts
  • Let’s try having one intermediaries rcmarin81@yahoo.com 41
  • JOHN PAUL GEORGE RINGO 42 Contacts with ONE middlemen 4 Producers + 4 Buyers = 8 contacts
  • That’s How intermediaries minimize transactions rcmarin81@yahoo.com 43 It’s a matter of simplifying the transactions. Simplified – Break it down
  • “Nothing is particularly hard, if you divide it into small jobs” rcmarin81@yahoo.com 44 - Henry Ford
  • MARKETING CHANNEL Management rcmarin81@yahoo.com 45
  • Again, the primary objective of a business is to earn . . . rcmarin81@yahoo.com 46 PROFIT
  • What we have learnt rcmarin81@yahoo.com 47
  • Channel of distribution It is the path or route along which goods move … rcmarin81@yahoo.com 48 PRODUCER CHANNEL CONSUMERS
  • Various Middlemen rcmarin81@yahoo.com 49 Wholesalers Retailers Agents
  • Intermediaries The main role is to resell the products of the manufacturer to final customers. rcmarin81@yahoo.com 50
  • They plays a significant role in the flow of products from producers to consumers and on company profitability. Although . . . rcmarin81@yahoo.com 51
  • Therefore, it requires careful administration. rcmarin81@yahoo.com 52
  • How to maximize the profit of the company ? One way is to manage their marketing channels effectively and efficiently. rcmarin81@yahoo.com 53
  • It refers to the process of analyzing, planning, organizing, and controlling a firm’s marketing channels. rcmarin81@yahoo.com 54 MARKETING CHANNEL Management
  • rcmarin81@yahoo.com 55 Motivational Strategies
  • Motivational Strategies To induce channel member cooperation: 1. Paying higher slotting allowances. 2. Offering higher trade discounts. 3. Provide strong advertising and promotional support. 4. Training channel members’ salespeople and; 5. Offering superior logistical support. rcmarin81@yahoo.com 56
  • Questions ??? To end my presentation . . . I’d like to share something . . . One of the 7 secrets to success of this man . rcmarin81@yahoo.com 57
  • rcmarin81@yahoo.com 58 Sells dreams Not Products
  • - Impok - Invest rcmarin81@yahoo.com 59 I I
  • Again, Thank you so much for listening! Good day everyone . . . rcmarin81@yahoo.com 60