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Chapter 1Marketing Channels
Chapter Plan• Introduction• Definition of Marketing Channel• Need and Importance of Marketing  Channels• Factors influenci...
Introduction• Physical distribution has become more  dynamic• Aim is to maximize customer satisfaction• Physical distribut...
Definition• Any firms or individuals who participate  in the flow of goods and services as  they move from producer to an ...
Need and Importance of            Channel• Option 1  – Direct Marketing without middlemen 0 Level• Option 2  – Indirect Ma...
Why channels are needed?1. Brings buyers and sellers together2. Make services/products available to   customers at conveni...
Why channels are needed?6. Producer can concentrate on core   activity7. Bridging the gap between the customers,   and pro...
Functions of Marketing              Channels1.   Facilitation2.   Information3.   Promotion4.   Negotiation5.   Transfer o...
Functions of Marketing            Channels7. Finance8. Proving pre-sale and post –sales    services9. Change Agents10. War...
Factors influencing the choiceof the Channel of Distribution1.   Nature o product2.   Nature of consumer3.   Middlemen con...
Channel StructureManufacturer     Manufacturer    Manufacturer Middlemen          Dealer         Wholesaler  Consumers    ...
Non-conventional Channels1.   Door-to-Door2.   Consumer Co-operatives3.   Automatic Vending Machines4.   Vending Kiosk5.  ...
Summary• In today’s competitive marketing environment  selection and design of marketing channel is  crucial• Marketing Ch...
Summary• Many factors affect choice of marketing channel  that includes nature of product, consumer,  company, middlemen a...
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Marketing Channels

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In this presentation, we will discuss about various aspects of marketing channels, needs and importance, how physical distribution and channel decision are critical for marketing channels, how does marketing channel functions. We will also talk about the various distributions channel structures.
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Marketing Channels

  1. 1. Chapter 1Marketing Channels
  2. 2. Chapter Plan• Introduction• Definition of Marketing Channel• Need and Importance of Marketing Channels• Factors influencing the Choice of the Channel• Non-conventional Channels Chapter 1 Marketing Channels
  3. 3. Introduction• Physical distribution has become more dynamic• Aim is to maximize customer satisfaction• Physical distribution and Channel Decisions are critical in Marketing Management Chapter 1 Marketing Channels
  4. 4. Definition• Any firms or individuals who participate in the flow of goods and services as they move from producer to an ultimate user• Organized network of interconnected organizations and agencies involved in the process of making a product or service available to the customers Chapter 1 Marketing Channels
  5. 5. Need and Importance of Channel• Option 1 – Direct Marketing without middlemen 0 Level• Option 2 – Indirect Marketing Using Middlemen 1 to n Level Chapter 1 Marketing Channels
  6. 6. Why channels are needed?1. Brings buyers and sellers together2. Make services/products available to customers at convenient time3. Producers cannot deal directly with customers4. Awareness creation5. More profitable sales Chapter 1 Marketing Channels
  7. 7. Why channels are needed?6. Producer can concentrate on core activity7. Bridging the gap between the customers, and producers.8. Reduce the number of transactions and thereby transaction cost. Chapter 1 Marketing Channels
  8. 8. Functions of Marketing Channels1. Facilitation2. Information3. Promotion4. Negotiation5. Transfer of the title and ownership6. Holding inventory and sharing risk Chapter 1 Marketing Channels
  9. 9. Functions of Marketing Channels7. Finance8. Proving pre-sale and post –sales services9. Change Agents10. Warehousing and transportation11. Market feed back and intelligence Chapter 1 Marketing Channels
  10. 10. Factors influencing the choiceof the Channel of Distribution1. Nature o product2. Nature of consumer3. Middlemen considerations4. Company considerations5. Market considerations6. Competitors’ channel Chapter 1 Marketing Channels
  11. 11. Channel StructureManufacturer Manufacturer Manufacturer Middlemen Dealer Wholesaler Consumers Consumers Retailer 1 to n level One Level Indirect Consumers marketing Two Level Chapter 1 Marketing Channels
  12. 12. Non-conventional Channels1. Door-to-Door2. Consumer Co-operatives3. Automatic Vending Machines4. Vending Kiosk5. Catalogue Marketing6. Company Sponsored Selling Chapter 1 Marketing Channels
  13. 13. Summary• In today’s competitive marketing environment selection and design of marketing channel is crucial• Marketing Channel serve as important link between manufacturer and consumer• Marketing channels important tasks includes facilitation, information , negotiation etc. Chapter 1 Marketing Channels
  14. 14. Summary• Many factors affect choice of marketing channel that includes nature of product, consumer, company, middlemen and market considerations• Channel structure varies from ‘0’ level to multi- level• Non-conventional channel includes door-to-door, consumer co-operatives etc. Chapter 1 Marketing Channels
  15. 15. “Like” us on Facebook:  p // /http://www.facebook.com/welearnindia “Follow” us on Twitter:http://twitter.com/WeLearnIndiahttp://twitter com/WeLearnIndiaWatch informative videos on Youtube: http://www.youtube.com/WelingkarDLP

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