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Marketing Channels

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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.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html

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.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html

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Marketing Channels

  1. 1. Chapter 1 Marketing 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 together 2. Make services/products available to customers at convenient time 3. Producers cannot deal directly with customers 4. Awareness creation 5. More profitable sales Chapter 1 Marketing Channels
  7. 7. Why channels are needed? 6. Producer can concentrate on core activity 7. 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 Channels 1. Facilitation 2. Information 3. Promotion 4. Negotiation 5. Transfer of the title and ownership 6. Holding inventory and sharing risk Chapter 1 Marketing Channels
  9. 9. Functions of Marketing Channels 7. Finance 8. Proving pre-sale and post –sales services 9. Change Agents 10. Warehousing and transportation 11. Market feed back and intelligence Chapter 1 Marketing Channels
  10. 10. Factors influencing the choice of the Channel of Distribution 1. Nature o product 2. Nature of consumer 3. Middlemen considerations 4. Company considerations 5. Market considerations 6. Competitors’ channel Chapter 1 Marketing Channels
  11. 11. Channel Structure Manufacturer 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 Channels 1. Door-to-Door 2. Consumer Co-operatives 3. Automatic Vending Machines 4. Vending Kiosk 5. Catalogue Marketing 6. 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/WeLearnIndia http://twitter com/WeLearnIndia Watch informative videos on Youtube:  http://www.youtube.com/WelingkarDLP

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