Channels of distribution
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Channels of distribution

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Channels of distribution Presentation Transcript

  • 1. Presentation
    on
    Channel design and channel Conflict
    Presented by:-
    Manju verma
    M.B.A. (2nd semester)
    vermamanju84@yahoo.com
  • 2. 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.
  • 3. 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
  • 4. 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
  • 5. Channels of
    distribution
  • 6. Zero level channel
    Manufacturer
    Customer
    CHANNEL
    ONE - LEVEL
    Manufacturer
    Retailer
    Customer
  • 7. 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
  • 8. Channels of distribution for consumer and industrial products
  • 9. Channel Behavior
  • 10. 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
  • 11. 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
  • 12. 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.”
  • 13. Horizontal Marketing System
    Horizontal Conflict occurs among firms at the same level of the channel (e.g., retailer to retailer).
  • 14. Channel Management
    Recruiting
    Training
    Motivating
    • Decision areas for channel Management
    Evaluating and Replacing Channel Members
    Servicing
    Compensating
  • 15. Thank you