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Presentation on Channel design and channel Conflict Presented by:- Manju verma M.B.A. (2nd semester) firstname.lastname@example.org
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 through which 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 Information Negotiation Physical Distribution Promotion Contact Financing Matching Risk Taking
Channels of distribution
Zero level channel Manufacturer Customer CHANNEL ONE - LEVEL Manufacturer Retailer Customer
T W O L E V E L C H A N N E L T H R E E L E V E L C H A N N E L Manufacturer Manufacturer Wholesaler Wholesaler Agent Retailer Retailer Customer Customer
Channels of distribution for consumer and industrial products
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 Degree of channel control desired Type of the product Financial Resources Services provided by the middleman Ability of Management 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
Specialty Goods Exclusive Distribution Selective Distribution Type of product Shopping Goods Intensive Distribution Convenience Goods Intensity of Distribution Little or no Effort Some Effort Much Effort Level of shopping effort
The Relationship between types of product, level of shopping effort, and intensity of distribution
Vertical Marketing System "A marketing channels in which manufacturing and the successive stages of distribution are operated as a unified system.”
Horizontal Marketing System Horizontal Conflict occurs among firms at the same level of the channel (e.g., retailer to retailer).
Channel Management Recruiting Training Motivating
Decision areas for channel Management
Evaluating and Replacing Channel Members Servicing Compensating