This document discusses marketing channels and channel management. It covers topics such as the functions performed by marketing channels like physical distribution and financing. It also discusses the flows within a marketing channel like physical flow and information flow. Finally, it outlines the steps for developing an effective marketing channel strategy, which includes analyzing consumer needs, setting channel objectives, identifying alternatives, and evaluating the alternatives.

1. BBA
K. Mayakannan Koodalingam

3.  ..the administration of existing channels to serve the
cooperation of channel members in achieving the
firm’s distribution objectives.
 Motivation..refers to the actions taken by the
manufacturer to foster strong channel member
cooperation in implementing the manufacturer’s
distribution objectives.

4. ◦ Information
◦ Promotion
◦ Contact
◦ Matching
◦ Negotiation
◦ Physical Distribution
◦ Financing
◦ Risk taking
◦ Environmental
sustainability
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• Channel members add value by bridging the m
ajor time, place, and possession gaps.
• Key functions:

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 Physical Flow
 Payment Flow
 Information Flow
 Promotion Flow
 Flow of Ownership

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 Step 1: Analyzing Consumer Needs
◦ Cost and feasibility of meeting needs must be considered
 Step 2: Setting Channel Objectives
◦ Set channel objectives in terms of targeted level of customer
service
◦ Many factors influence channel objectives
 Nature of the company (size/financial position) and its products
 Marketing intermediaries
 Competition
 Marketing environment

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 Step 3: Identifying Major Alternatives
◦ Types of intermediaries
 Company sales force, manufacturer’s agency, industrial
distributors
◦ Number of marketing intermediaries
 Intensive, selective, and exclusive distribution
◦ Responsibilities of channel members

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 Step 4: Evaluating Major Alternatives
◦ Economic criteria
◦ Control issues
◦ Adaptive criteria

9.  Finding out the needs and problems of channel
members
 Offering support to the channel members that is
consistent with their needs and problems
 Providing leadership through the effective use of power

10.  Research studies of channel members
 Research studies by outside parties
 Marketing channel audits
 Distributor advisory councils

11.  Cooperative
 Provide incentives for getting extra effort from channel members in
the promotion of the products
 Partnership or strategic alliance
 A continuing and mutually supportive relationship. Ex) EDI
 Distribution programming
 A comprehensive set of policies for the promotion of a product
through the channel.
 The development of a planned, professionally managed channel.

12.  The looseness of the organization of many channel
systems
 A proclivity by channel members to avoid central
direction
 Lack of single ownership
 No clear demarcation of a superior-subordinate
relationship