2. Know About:
Mark eting Managem ent
• Distribution Channel
• Types of Distribution Channel
• Design of Distribution Channel
• Channel Management
• Channel Dynamics-
VMS, HMS
• Whole selling retailing,
• E-tailing
Marketing Management
MM
3. FR
Distribution Channel
• A distribution channel is a chain of
businesses or intermediaries through
which a good or service passes until it
reaches the final buyer or the end
consumer.
• Distribution channels can include
wholesalers, retailers, distributors, and
even the internet.
Marketing Management
MM
Production Consumer
Production
Wholesaler Retailer Consumer
4. FR
What is Distribution Channel?
Marketing Management
Distribution
Channel
Indirect
Traditional Direct
Reseller
Strategy
Direct Selective
MM
5. FR
Marketing Management
Functions of Distribution Channel
Information Promotion Contact
Matching
Negotiation
Physical
Distribution
Financing Risk Taking
MM
6. FR
Types of Distribution Channel
Marketing Management
Direct
Distribution
• Direct channels are usually used by manufacturers
selling perishable goods, expensive goods, and whose
target audience is geographically concentrated.
Indirect
Distribution
• When a manufacturer involves a
middleman/intermediary to sell its product to the end
customer, it is said to be using an indirect channel.
Hybrid
Distribution
• When a manufacturer uses more than one distribution
channel simultaneously to reach the end-user, he is said
to be using the dual distribution strategy.
MM
7. Design of Distribution Channel
Analyzing the
Needs of the
Customer
Establishing
Channel
Objectives
Considering
Channel
Constraints
Listing
Channel Tasks
Identifying
Channel
Alternatives
Evaluating
Alternate
Channels
MM
9. Channel Dynamics
Marketing Management
• Products of any company should be
sent to sale – centers for selling out.
The way used to send goods / products
of a company to consumers is called
distribution channel.
MM
10. FR
Marketing Management
Channel Dynamics: Vertical Marketing
System (VMS)
A vertical marketing system is when producers, wholesalers and retailers work in unison to meet their customers'
needs. It allows one company to have control over the entire process of producing and selling a product.
Manufacturer
Wholesaler
Retailer
Consumer
Manufacturer
Wholesaler
Retailer
Consumer
MM
11. FR
Marketing Management
Channel Dynamics: Horizontal
Marketing System (HMS)
A Horizontal Marketing system is a form of distribution channel wherein two or more
companies at the same level unrelated to each other come together to gain the
economies of scale.
Retailer
Wholesaler
Manufacturer
Company
1
Company
2
MM
Starbucks
Apple
Facebook
Instagram
Examples:
12. FR
Marketing Management
Whole Selling Retailing
Essentially there are two main ways to sell your
product – either as a wholesaler, or as a
retailer. When choosing the most appropriate
avenue to market, you must consider which
model fits best with:
•Your strengths and personality as a business
owner
•The brand identity of your business and its
product or products
•How best to reach your target market
Wholesale
Retail
vs
MM
13. E-tailing Or Electronic Retailing
E l e c t r o n i c r e t a i l i n g (e - t a i l i n g ) i s a n
i n t e r n e t - b a s e d s a l e s p l a t f o r m
w h e r e c o n s u m e r s a r e a b l e t o b u y
a n d s e l l g o o d s o n l i n e d i r e c t l y f r o m
a b u s i n e s s w i t h o u t p h y s i c a l l y
i n s p e c t i n g t h e g o o d s .
Marketing Management
MM
List
Products
Promote
Products
Customer
Support
Process
Payment
Deliver
Product
Pay-to
Retailer
E-tailing Responsibilities
