Distribution channel management

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Distribution channel management

  1. 1. Distribution Channel Management By: Hirendra Jalchhatri
  2. 2. The Distribution Channel <ul><li>“ Marketing channels are the distribution networks through which producers’ products flow to the market.” </li></ul><ul><li>- Cundiff, Still & Govani </li></ul><ul><li>“ Distribution channels are the system of economic institutions through which a producer of goods delivers them into hands of their users.” </li></ul><ul><li>- Richard Buskirk </li></ul>
  3. 3. The types of Distribution Channel <ul><li>Various ways to structure the business marketing channel, </li></ul><ul><ul><li>Direct Channels </li></ul></ul><ul><ul><li>Indirect Channels </li></ul></ul>
  4. 4. Parts of Distribution Channels
  5. 5. Direct Channels <ul><ul><ul><li>- The manufacturer must perform all of the marketing functions needed to make and deliver the product. </li></ul></ul></ul>
  6. 6. Direct Channels <ul><li>Direct Sales </li></ul><ul><ul><li>Feasible when (1) the customers are large and well defined,(2) sales involve extensive negotiations with upper management, and (3) selling has to be controlled </li></ul></ul><ul><li>Online Marketing </li></ul><ul><ul><li>Can be used by businesses as (1) information platforms, (2) transaction platforms, and (3) platforms for managing customer relationships. </li></ul></ul><ul><li>Telemarketing </li></ul><ul><ul><li>Used for less expensive products. </li></ul></ul>
  7. 7. Indirect channels <ul><ul><ul><li>Some type of intermediary </li></ul></ul></ul><ul><ul><ul><li>(dealer or distributor) sells or handles the products. </li></ul></ul></ul>
  8. 8. Indirect Channels <ul><li>Indirect distribution is generally found where , </li></ul><ul><li>Markets are fragmented and widely dispersed. </li></ul><ul><li>Low transaction amounts prevail. </li></ul><ul><li>Buyers typically purchase a number of items, often different brands, in one transaction . </li></ul>
  9. 9. PARTICIPANTS IN BUSINESS MARKETING CHANNEL (Indirect Channels parts) <ul><li>Channel management strategy starts with figuring out the intermediaries that will be used with a focus on: </li></ul><ul><ul><ul><li>Distributors </li></ul></ul></ul><ul><ul><ul><li>Manufacturers’ representatives </li></ul></ul></ul>
  10. 10. Distributors <ul><li>Small independent businesses </li></ul><ul><li>Serve narrow geographic markets </li></ul><ul><li>Small orders, but serve many customers & industries </li></ul>
  11. 11. Manufactures Representatives <ul><li>This representative has expert knowledge of the product as well as an understanding of the market and customer needs. </li></ul><ul><li>They make contact with the customer and write up orders, as well as link the manufacturer with the industrial end user. </li></ul>
  12. 12. Distribution Modes
  13. 13. In Agriculture, Form Of ‘ Distribution Channel’
  14. 14. Conclusion -
  15. 15. THANKING YOU - For give me this great opportunity

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