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Channel structure


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Channel structure

  1. 1. Course Instructor : Sneha Sharma
  2. 2. It is defined as the design and management of a system that directs and controls the flows of materials into, through and out of the firm across national boundaries to achieve its corporate objectives at a minimum total cost . It encompasses materials management, sourcing, and physical distribution.
  3. 3.  Materials management  It refers to the inflow of raw materials, parts, and supplies in and through the firm.  Physical distribution  It refers to the movement of the firm’s finished products to its customers, consisting of transportation, warehousing, inventory, customer service/order entry, and administration.  Sourcing strategy  It refers to an operational link between materials management and physical distribution, and deals with how companies manage R&D (e.g., product development and engineering), operations (e.g., manufacturing), and marketing activities.
  4. 4. Identify specific target markets within and across countries Specify marketing goals in terms of volume , market share and profit margin requirements Specify financial and personal commitments to the development of international distribution Identify control, length of channels, terms of sale and channel ownership.
  5. 5. Cost Capital Control Coverage Character Continuity
  6. 6. Customer Characteristics Product Characteristics Middleman Characteristics
  7. 7.  Number  Geographic distribution  Income  Shopping Habits  Reactions to different selling methods
  8. 8.  Degree of standardization  Perishability  Bulk  Service  Unit price
  9. 9.  Cherry Picking  Selection and care of distributors and agents  Agent/Distributor performance  Termination
  10. 10. These channels link manufacturers to customers. Consumer Channels Industrial Channels
  11. 11. Door to Door Selling Manufacturer Owned Store Franchise Operations Combination Structure
  12. 12.  Elements involved  Manufacturers sale force  Distributor/agents  Wholesalers