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MARKETING CHANNELS
Selecting and Managing
RONALDO C. MARIN, JR.
1rcmarin81@yahoo.com
Master in Management
Good Morning!
Ronaldo Marin, Jr.
Springboard Activity
Connect the Dots
I will be the class reporter for today
2rcmarin81@y...
4 straight lines
Connect all nine (9) dots without lifting the
writing instrument.
Springboard Activity
Connect the Dots
3...
What is the learning point here?
Think
Beyond-the-box
4rcmarin81@yahoo.com
And that will be the subject of my
presentation today.
Do not confine ourselves on the standard
sometimes we need to think...
All about -
MARKETING CHANNELS
Selecting and Managing
How the producer can put his products in
the hands of his customers
...
Vocabulary:
PLACE
Marketing Channels
Channels of Distribution
Trade Channel
Distribution System
More or less
mean the same...
So, let’s get started
8rcmarin81@yahoo.com
Marketing Channels
Selecting and Managing
(Chapter 10 – Part 2)
9rcmarin81@yahoo.com
Terminal objective
rcmarin81@yahoo.com 10
Terminal objective
11rcmarin81@yahoo.com
To understand the various
aspects of Marketing Channel.
After this oral report, t...
Any activity involved in
the production and
distribution of goods
and services,
Aimed to satisfy the
needs and wants of
th...
What is the primary objective of all
business enterprises?
rcmarin81@yahoo.com 13
PROFITABILITY
by selling goods and services to ultimate
consumers or users
rcmarin81@yahoo.com 14
rcmarin81@yahoo.com 15
Channels of distribution
(Marketing Channels)
Channels of distribution
(Marketing Channel)
rcmarin81@yahoo.com
16
PRODUCER ConsumersChannel
The pipeline from producer t...
It is the distribution network through
which a producer puts his product in the
hands of actual users.
rcmarin81@yahoo.com...
Classification of
Channels of distribution
rcmarin81@yahoo.com 18
rcmarin81@yahoo.com 19
Producers of consumer products and services
Ultimate users / consumers
DIRECT CHANNEL
Direct Channel
When manufacturer and customer deal directly
with each other.
There is NO MIDDLEMAN present in this
type of...
Samples of businesses involves in
direct selling
Avon Sarah Lee Boardwalk
rcmarin81@yahoo.com 21
rcmarin81@yahoo.com 22
Producers of consumer products and services
Ultimate users / consumers
Retailer
Wholesaler
Retailer...
Companies producing goods on a large scale.
Usually, they sells goods through middlemen.
rcmarin81@yahoo.com 23
Indirect C...
Wholesaler acts as a middlemen in the
channel of distribution as he buys goods
in large quantity from producer and sells
t...
Retailers buys goods from wholesaler and
sells them directly to consumers.
Thus he acts as a direct link between the
whole...
So, the two main types of channels
are:
1
rcmarin81@yahoo.com 26
Direct Channel
rcmarin81@yahoo.com 27
2Indirect Channel
Selecting
MARKETING CHANNEL
Is very crucial
rcmarin81@yahoo.com 28
Who’s your customers?
What is your competitive advantage?
Direct approach.
Indirect approach because direct approach is
ve...
Factors to be considered before
selecting a suitable channel of
distribution.
rcmarin81@yahoo.com 30
Considerations
rcmarin81@yahoo.com 31
Product
Considerations
rcmarin81@yahoo.com 32
Market
Considerations
rcmarin81@yahoo.com 33
Company
Factors to be considered before choosing a suitable
channel of distribution.
rcmarin81@yahoo.com 34
ProductMarketCompany
S...
Functions Performed by
Middlemen
They play a significant role in company’s
marketing channel.
rcmarin81@yahoo.com 35
Again,
rcmarin81@yahoo.com 36
Value
Added
Transactional
Function
Logical
Function
Facilitation
Function
Marketing Channel Functio...
How Intermediaries
Minimize Transactions
rcmarin81@yahoo.com 37
Let’s see . . .
Refrigerator
rcmarin81@yahoo.com 38
Product:
rcmarin81@yahoo.com 39
Brands of Refrigerator
JOHN
PAUL
GEORGE
RINGO
40
Contacts with no middlemen
4 Producers x 4 Buyers = 16 contacts
Let’s try having one
intermediaries
rcmarin81@yahoo.com 41
JOHN
PAUL
GEORGE
RINGO
42
Contacts with ONE middlemen
4 Producers + 4 Buyers = 8 contacts
That’s
How intermediaries minimize
transactions
rcmarin81@yahoo.com 43
It’s a matter of simplifying the transactions.
Simp...
“Nothing is particularly hard,
if you divide it into small jobs”
rcmarin81@yahoo.com 44
- Henry Ford
MARKETING CHANNEL
Management
rcmarin81@yahoo.com 45
Again, the primary objective of a
business is to earn . . .
rcmarin81@yahoo.com 46
PROFIT
What we have learnt
rcmarin81@yahoo.com 47
Channel of distribution
It is the path or route along which goods move …
rcmarin81@yahoo.com 48
PRODUCER CHANNEL CONSUMERS
Various Middlemen
rcmarin81@yahoo.com 49
Wholesalers Retailers
Agents
Intermediaries
The main role is to resell the products
of the manufacturer to final
customers.
rcmarin81@yahoo.com 50
They plays a significant role in the flow of
products from producers to consumers
and on company profitability.
Although ....
Therefore, it requires
careful administration.
rcmarin81@yahoo.com 52
How to maximize the profit of
the company ?
One way is to manage their marketing
channels effectively and efficiently.
rcm...
It refers to the process of analyzing,
planning, organizing, and controlling
a firm’s marketing channels.
rcmarin81@yahoo....
rcmarin81@yahoo.com 55
Motivational Strategies
Motivational Strategies
To induce channel member cooperation:
1. Paying higher slotting allowances.
2. Offering higher tra...
Questions ???
To end my presentation . . .
I’d like to share something . . .
One of the 7 secrets to success of this man ....
rcmarin81@yahoo.com 58
Sells dreams
Not Products
- Impok
- Invest
rcmarin81@yahoo.com 59
I I
Again,
Thank you so much for listening!
Good day everyone . . .
rcmarin81@yahoo.com 60
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Selecting and Managing Marketing Channels

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Presentation for Marketing Management subject, Master in Management Technological University of the Philippines - Manila.

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Selecting and Managing Marketing Channels

  1. 1. MARKETING CHANNELS Selecting and Managing RONALDO C. MARIN, JR. 1rcmarin81@yahoo.com Master in Management
  2. 2. Good Morning! Ronaldo Marin, Jr. Springboard Activity Connect the Dots I will be the class reporter for today 2rcmarin81@yahoo.com
  3. 3. 4 straight lines Connect all nine (9) dots without lifting the writing instrument. Springboard Activity Connect the Dots 3rcmarin81@yahoo.com
  4. 4. What is the learning point here? Think Beyond-the-box 4rcmarin81@yahoo.com
  5. 5. And that will be the subject of my presentation today. Do not confine ourselves on the standard sometimes we need to think outside-the-box. Look for an alternative ways to solve our problems. 5rcmarin81@yahoo.com
  6. 6. All about - MARKETING CHANNELS Selecting and Managing How the producer can put his products in the hands of his customers 6rcmarin81@yahoo.com
  7. 7. Vocabulary: PLACE Marketing Channels Channels of Distribution Trade Channel Distribution System More or less mean the same thing. 7rcmarin81@yahoo.com
  8. 8. So, let’s get started 8rcmarin81@yahoo.com
  9. 9. Marketing Channels Selecting and Managing (Chapter 10 – Part 2) 9rcmarin81@yahoo.com
  10. 10. Terminal objective rcmarin81@yahoo.com 10
  11. 11. Terminal objective 11rcmarin81@yahoo.com To understand the various aspects of Marketing Channel. After this oral report, the class should be able to:
  12. 12. Any activity involved in the production and distribution of goods and services, Aimed to satisfy the needs and wants of their customers. rcmarin81@yahoo.com 12 Marketing Business
  13. 13. What is the primary objective of all business enterprises? rcmarin81@yahoo.com 13
  14. 14. PROFITABILITY by selling goods and services to ultimate consumers or users rcmarin81@yahoo.com 14
  15. 15. rcmarin81@yahoo.com 15 Channels of distribution (Marketing Channels)
  16. 16. Channels of distribution (Marketing Channel) rcmarin81@yahoo.com 16 PRODUCER ConsumersChannel The pipeline from producer to consumer
  17. 17. It is the distribution network through which a producer puts his product in the hands of actual users. rcmarin81@yahoo.com 17 Channel of distribution
  18. 18. Classification of Channels of distribution rcmarin81@yahoo.com 18
  19. 19. rcmarin81@yahoo.com 19 Producers of consumer products and services Ultimate users / consumers DIRECT CHANNEL
  20. 20. Direct Channel When manufacturer and customer deal directly with each other. There is NO MIDDLEMAN present in this type of channel. rcmarin81@yahoo.com 20
  21. 21. Samples of businesses involves in direct selling Avon Sarah Lee Boardwalk rcmarin81@yahoo.com 21
  22. 22. rcmarin81@yahoo.com 22 Producers of consumer products and services Ultimate users / consumers Retailer Wholesaler Retailer Agent Wholesaler Retailer
  23. 23. Companies producing goods on a large scale. Usually, they sells goods through middlemen. rcmarin81@yahoo.com 23 Indirect Channel Wholesalers Retailers
  24. 24. Wholesaler acts as a middlemen in the channel of distribution as he buys goods in large quantity from producer and sells these to retailers in small quantities. rcmarin81@yahoo.com 24 Wholesalers
  25. 25. Retailers buys goods from wholesaler and sells them directly to consumers. Thus he acts as a direct link between the wholesaler and consumers. rcmarin81@yahoo.com 25 Retailers
  26. 26. So, the two main types of channels are: 1 rcmarin81@yahoo.com 26 Direct Channel
  27. 27. rcmarin81@yahoo.com 27 2Indirect Channel
  28. 28. Selecting MARKETING CHANNEL Is very crucial rcmarin81@yahoo.com 28
  29. 29. Who’s your customers? What is your competitive advantage? Direct approach. Indirect approach because direct approach is very expensive in high volume products . rcmarin81@yahoo.com 29
  30. 30. Factors to be considered before selecting a suitable channel of distribution. rcmarin81@yahoo.com 30
  31. 31. Considerations rcmarin81@yahoo.com 31 Product
  32. 32. Considerations rcmarin81@yahoo.com 32 Market
  33. 33. Considerations rcmarin81@yahoo.com 33 Company
  34. 34. Factors to be considered before choosing a suitable channel of distribution. rcmarin81@yahoo.com 34 ProductMarketCompany Selecting Marketing Channel
  35. 35. Functions Performed by Middlemen They play a significant role in company’s marketing channel. rcmarin81@yahoo.com 35 Again,
  36. 36. rcmarin81@yahoo.com 36 Value Added Transactional Function Logical Function Facilitation Function Marketing Channel Functions Performed by Middlemen. - Risk - Marketing - Administration - Storing - Sorting - Transporting - Financing - Information - After- sales
  37. 37. How Intermediaries Minimize Transactions rcmarin81@yahoo.com 37 Let’s see . . .
  38. 38. Refrigerator rcmarin81@yahoo.com 38 Product:
  39. 39. rcmarin81@yahoo.com 39 Brands of Refrigerator
  40. 40. JOHN PAUL GEORGE RINGO 40 Contacts with no middlemen 4 Producers x 4 Buyers = 16 contacts
  41. 41. Let’s try having one intermediaries rcmarin81@yahoo.com 41
  42. 42. JOHN PAUL GEORGE RINGO 42 Contacts with ONE middlemen 4 Producers + 4 Buyers = 8 contacts
  43. 43. That’s How intermediaries minimize transactions rcmarin81@yahoo.com 43 It’s a matter of simplifying the transactions. Simplified – Break it down
  44. 44. “Nothing is particularly hard, if you divide it into small jobs” rcmarin81@yahoo.com 44 - Henry Ford
  45. 45. MARKETING CHANNEL Management rcmarin81@yahoo.com 45
  46. 46. Again, the primary objective of a business is to earn . . . rcmarin81@yahoo.com 46 PROFIT
  47. 47. What we have learnt rcmarin81@yahoo.com 47
  48. 48. Channel of distribution It is the path or route along which goods move … rcmarin81@yahoo.com 48 PRODUCER CHANNEL CONSUMERS
  49. 49. Various Middlemen rcmarin81@yahoo.com 49 Wholesalers Retailers Agents
  50. 50. Intermediaries The main role is to resell the products of the manufacturer to final customers. rcmarin81@yahoo.com 50
  51. 51. They plays a significant role in the flow of products from producers to consumers and on company profitability. Although . . . rcmarin81@yahoo.com 51
  52. 52. Therefore, it requires careful administration. rcmarin81@yahoo.com 52
  53. 53. How to maximize the profit of the company ? One way is to manage their marketing channels effectively and efficiently. rcmarin81@yahoo.com 53
  54. 54. It refers to the process of analyzing, planning, organizing, and controlling a firm’s marketing channels. rcmarin81@yahoo.com 54 MARKETING CHANNEL Management
  55. 55. rcmarin81@yahoo.com 55 Motivational Strategies
  56. 56. Motivational Strategies To induce channel member cooperation: 1. Paying higher slotting allowances. 2. Offering higher trade discounts. 3. Provide strong advertising and promotional support. 4. Training channel members’ salespeople and; 5. Offering superior logistical support. rcmarin81@yahoo.com 56
  57. 57. Questions ??? To end my presentation . . . I’d like to share something . . . One of the 7 secrets to success of this man . rcmarin81@yahoo.com 57
  58. 58. rcmarin81@yahoo.com 58 Sells dreams Not Products
  59. 59. - Impok - Invest rcmarin81@yahoo.com 59 I I
  60. 60. Again, Thank you so much for listening! Good day everyone . . . rcmarin81@yahoo.com 60

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