Channel

1. CHANNEL DESIGN,
CHANNEL CONFLICT,
CHANNEL
MANAGEMENT
DECISION
Project On Management

2. Name Of Group Members
 Vaibhav Pandey
 Mayank Chaturvedi
 Vinit Kumar
 Shayani Chakraborty
 Vaibhav Shukla

3. Meaning of Channel Design
 Channel design determine market presence
 It gives idea of buyers accessibility.
 Channel decisions have additional strategic significance
because they entail long-term commitments.
 It is usually easier to change prices or promotion than to
change marketing channels.

4. Dimensions of channel design
Market dimensions
Company dimensions
Environmental
Dimensions
Product dimensions
Intermediary
Dimensions
Behavioural
dimensions

5. Market Dimensions
 It focuses on customer( market) orientation.
 Develop different strategies of marketing mix to target
customer.
 Four market variables which are important for
influencing channel structure-
 Market geography
 Market size
 Market density
 Market Behavior

6. Product Dimensions
 Product variable are important factor for evaluating
alternative channel structure.some of the important
factord are-
Bulk and weight
 Perishability
 Unit value
 Technical versus non- technical
 Newness

7. Company dimensions
 The most important company variables affecting channel design
are:
 size
 Financial capacity
 Managerial Expertise
 Objectives and Strategies

8. Intermediary Dimensions
 The key intermediary variables related to
channel structure are:
 Availability.
 Cost
 Services

9. Environment Decision
 Environment factor is one of the important variables
for the channel design
 Economic, socio cultural, competitive, technological,
and legal environmental forces can have a significant
affect in the decision for channel design.

10. CHANNEL CONFLICT

11.  A channel conflict may be defined as “A situationin which one channel
member perceives another channel member(s) to be engaged in behavior
that prevents it fromachieving its goals”.
 Conflict is opposition, disagreement or discardamong the organizations.
 It can keep other channel members on their toes knowing that a decline in
performance might leadto a change in the channel arrangements.

12. Types of Channel Conflict
 Vertical conflict
 Horizontal conflict
 Inter type conflict
 MultiChannel conflict

13. Vertical Conflict
 Vertical conflicts occur due to the differences in goals and objectives,
misunderstandings, and mainly due to the poor communication
 Lack of role clarity and over dependence on the manufacturers. For e.g.
Today the large retailers dominate the market and dictate the terms. Hence
there are often conflicts between these giant retailers and the
manufacturers.

14. Horizontal Conflict
 Horizontal conflicts are the conflicts between the channel members at the
same level
 Aggressive advertising and pricing by one dealer can affect business of other dealers.
 Extra service offered by one dealer / retailer can attract customers of others.

15. Inter Type Conflict
 Inter type conflict occurs when, the Intermediaries dealing in a particular
product starts trading outside their normal product range.
 E.g.- the supermarkets such as Foodworld also sell vegetables and fruits and
thus compete with small retailers selling these products.
 . This concept is called as “Scrambled Merchandising” ” where the retailers
keep the merchandise lines that are outside their normal product range.

16. Multi-Channel Conflict
 Multi-channel conflict occurs when the manufacturer uses a dual distribution
strategy, i.e. the manufacturer uses two or more channel arrangements to reach to the
same market.
 Manufacturers can sell directly through their exclusive showroom or outlets. This act
can affect the business of other channels selling manufacturer’s brands.
 Manufacturers can bypass the wholesalers and sell directly to the large retailers.
Conflict becomes more intense in this case as the large retailers can enjoy more
customers and so the profit due to offering more variety and still economical prices,
which is possible due to a volume purchase.

17. Channel decision

18. Major Decision Areas In Channel
Management
SELECTING CHANNEL MEMBERS
TRAINING CHANNEL MEMBERS
EVALUATING CHANNEL MEMBERS

19. FACTORS AFFECTING CHANNEL MANAGEMENT
DECISION
There are different causes or factors that influence the
channel of distribution
 Geographic Characteristics
 Product Characteristics
 Distributor Characteristics
 Competitive Characteristics
 Company Characteristics

20. Thank You