3. A marketing channel is a set of practices or
activities necessary to transfer the ownership of
goods, and to move goods, from the point of
production to the point of consumption.
MARKETING CHANNEL
9. It refers to those decisions involving the development of
new marketing channels where none had existed before, or
to modification of existing channels.
CHANNEL DESIGN
10. CHANNEL DESIGN DECISIONS
Customer wants and needs
Objectives and constraints
Identifyng and evaluate alternatives
11. MEMBERS IN MARKETING CHANNEL
MERCHANTS
(Wholesalers and
retailers)buy, take,
title to and resell
merchandise
AGENTS
Agents(brockers,manufacturer,re
prasentatives,sales agents)search
for customers and may negotiate
on the producers behalf, but do
not take title to goods
FACILITATORS
Facilitators(shippers, independent warehouses,
banks, ad agencies) assistin distribution , but do
not take title to goods nor do the negotiate
purchases or sales.
12. STEPS OF DESIGNING A CHANNEL
ANALYSIS OF CUSTOMERS DESIRED SERVICE
OUTPUT LEVELS
ESTABLISHING CHANNEL OBJECTIVES
IDENTIFYING MAJOR CHANNELALTERNATIVES
EVALUATING THE MAJOR ALTERNATIVES
13. 1.ANALYSIS OF CUSTOMERS DESIRED
SERVICE OUTPUT LEVELS
Analyzing customer needs
Waiting time
Product variety
Service backup
14. 2.ESTABLISHING CHANNEL OBJECTIVES
Each channel alternatives provide a different level of
sales, costs.
Eg: internet, telemarketing, retail stores, distributors.
15. 3.IDENTIFYING MAJOR CHANNEL ALTERNATIVES
Company Sales Force
Dealer
Value Added Resellers
Merchants
Carrying and Forwarding Agents
Intensive Distribution
17. 5.EVALUATING THE MAJOR ALTERNATIVES
Once the list of alternative channels is
selected, the marketing manager should
evaluate each channel alternative to arrive at
a final decision.