Distribution channels involve intermediaries that make products available for consumption and involve long-term commitments. Intermediaries provide efficiency, contacts, experience, scale, and help match supply and demand. Channel functions include information gathering, promotion, contact, matching needs to offers, negotiation, physical distribution, financing, and risk taking. The basic channels are manufacturers, agents/brokers, wholesalers/distributors, retailers, and consumers. Channels have levels from manufacturer to wholesaler to retailer to consumer. Channels are most effective when members perform specialized tasks and cooperate to achieve goals and satisfy customers.
A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. It can include wholesalers, retailers, distributors and even the internet itself.
A marketing channel is a set of practices or activities necessary to transfer the ownership of goods, from the point of production to the point of consumption.
A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. It can include wholesalers, retailers, distributors and even the internet itself.
A marketing channel is a set of practices or activities necessary to transfer the ownership of goods, from the point of production to the point of consumption.
Distribution Channel/Marketing Channels by Amitabh MishraAmitabh Mishra
This presentation talks about Place decision of marketing strategy. It presents fundamentals of Distribution Channels or Marketing Channels, functions of intermediaries, types and levels of channels, and channel management.
Marketing Channels - Module 1: Where Mission Meets MarketSebastiano Mereu
Preparation for the Marketing Channels exam at Edinburgh Business School Content extracted from the text book by Lou E. Pelton, Dr. David Strutton, and Dr. James R. Lumpkin.
presentation on channel design "Marketing"Sanower Azad
WHAT IS CHANNEL DESIGN??
Designing a channel system calls for analyzing customer needs, establishing channel objectives, and identifying and evaluating the major channel alternatives.
concept of marketing channel refers to concept, roles, functions and flows of marketing channel. also explains the channel levels and the number of intermediaries used in the channel.
Channel management is complex, presenting many challenges. A structured channel program with close program alignment will help you address those challenges.
Distribution Channel/Marketing Channels by Amitabh MishraAmitabh Mishra
This presentation talks about Place decision of marketing strategy. It presents fundamentals of Distribution Channels or Marketing Channels, functions of intermediaries, types and levels of channels, and channel management.
Marketing Channels - Module 1: Where Mission Meets MarketSebastiano Mereu
Preparation for the Marketing Channels exam at Edinburgh Business School Content extracted from the text book by Lou E. Pelton, Dr. David Strutton, and Dr. James R. Lumpkin.
presentation on channel design "Marketing"Sanower Azad
WHAT IS CHANNEL DESIGN??
Designing a channel system calls for analyzing customer needs, establishing channel objectives, and identifying and evaluating the major channel alternatives.
concept of marketing channel refers to concept, roles, functions and flows of marketing channel. also explains the channel levels and the number of intermediaries used in the channel.
Channel management is complex, presenting many challenges. A structured channel program with close program alignment will help you address those challenges.
6. Basic Channels of Distribution Manufacturers/products Agents/brokers Wholesalers/distributors Retailers Retailers Consumers and organizational end users
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11. Channel Design Decisions Analyzing Consumer Service Needs Setting Channel Objectives & Constraints Exclusive Distribution Selective Distribution Intensive Distribution Identifying Major Alternatives Evaluating the Major Alternatives
22. Transportation Modes Rail Nation’s largest carrier, cost-effective for shipping bulk products, piggyback Truck Flexible in routing & time schedules, efficient for short-hauls of high value goods Water Low cost for shipping bulky, low-value goods, slowest form Pipeline Ship petroleum, natural gas, and chemicals from sources to markets Air High cost, ideal when speed is needed or to ship high-value, low-bulk items
23. Integrated Logistics Management Concept Recognizes that Providing Better Customer Service and Trimming Distribution Costs Requires Teamwork , Both Inside the Company and Among All the Marketing Channel Organizations. Cross-Functional Teamwork inside the Company Building Channel Partnerships Third-Party Logistics
Editor's Notes
Distribution Channel Functions This CTR relates to the material on pp. 354-355. Distribution Channel Functions Information. This function involves gathering and distributing marketing research and intelligence about the environment for planning purposes. Discussion Note: The use of scanner technology has dramatically changed this function in the last few years. Promotion. This involves developing and spreading persuasive communications about an offer. Contact. Contact involves finding and communicating with prospective buyers. Matching. This function consists of shaping and fitting the offer to the buyer’s needs by manufacturing, grading, assembling, and packaging. Negotiation. This involves reaching an agreement on price and other terms. Physical Distribution . This function consists of the transporting and storing of goods. Financing. This function addresses the acquiring and using of funds to cover the costs of channel work. Risk Taking. This function assumes the risk of carrying out the channel work. Discussion Note: Students often assume business is risk-free. You might expand upon the link between risk and value-added services as the justification for profits.
Distribution Channel Functions This CTR relates to the material on pp. 354-355. Distribution Channel Functions Information. This function involves gathering and distributing marketing research and intelligence about the environment for planning purposes. Discussion Note: The use of scanner technology has dramatically changed this function in the last few years. Promotion. This involves developing and spreading persuasive communications about an offer. Contact. Contact involves finding and communicating with prospective buyers. Matching. This function consists of shaping and fitting the offer to the buyer’s needs by manufacturing, grading, assembling, and packaging. Negotiation. This involves reaching an agreement on price and other terms. Physical Distribution . This function consists of the transporting and storing of goods. Financing. This function addresses the acquiring and using of funds to cover the costs of channel work. Risk Taking. This function assumes the risk of carrying out the channel work. Discussion Note: Students often assume business is risk-free. You might expand upon the link between risk and value-added services as the justification for profits.
Channel Design Decisions This CTR relates to the material on pp. 364-368. Identifying Major Alternatives Number of Channel Members Intensive Distribution . This approach utilizes as many outlets as possible and is especially appropriate for convenience goods and common raw materials. Exclusive Distribution. This approach consists of a very limited number of outlets hold all the rights to distribute a product line. This strategy is appropriate for many high prestige goods. Distributor selling effort is usually very strong. Selective Distribution . This approach uses more than one outlet per market but less than all available outlets. This strategy gains good market coverage and gains better than average selling effort. Teaching Tip: Ask students to name their favorite store for: gifts, computer supplies, sporting goods, hobbies. Many will name selective distribution outlets.
Channel Management Decisions This CTR relates to the material on pp. 369-370. Channel Management Decisions Selecting Channel Members. Choosing middlemen will vary in difficulty be product and producer. Very large and well known companies often have more qualified middlemen seeking to carry their products than the company can effectively use. Some new products will be resisted by existing channels and may require adopting new channel members to carry the line. Motivating Channel Members. Channel members must be motivated to perform. Positive motivators come from high margins, special deals, premiums, cooperative advertising allowances, display allowances, and sales contests. Negative motivators may include threatening margins, delaying delivery, or ending the relationship. Long term cooperation is enhanced by distribution programming which involves building a planned, professionally managed, VMS that meets al channel member needs. Evaluating Channel Members. Assessing channel members requires regular measurement of performance against established criteria such as sales quotas, inventory levels, customer delivery time, training, and overall customer service for each channel member. Effective channel management rewards superior performance and seeks to improve substandard performance in a cooperative professional partnership. Channel member replacement should be used as a last resort with sincere efforts to improve performance have not succeeded.
Transportation Modes This CTR relates to the material on pp. 375-377. Transportation Rail . Rail is the largest carrier mode with 37% of the total cargo shipped. Rail is especially cost effective for large amounts of bulk products shipped over long distances. Truck . Trucks account for some 25% of the total cargo shipped. Trucks are the largest movers of within city shipping. Truck are highly flexible in routing and scheduling. Trucks are an efficient short-haul mode. Water . Water is very inexpensive for shipping high bulk nonperishable goods but is also the slowest transportation mode. Pipeline . Pipelines are specialized modes for such goods as oil and natural gas. Pipelines are usually owned by companies that also own the raw materials being piped. Air . Air is the most expensive mode of transportation but also the quickest. Extremely perishable goods, high-value, low-bulk, and time-sensitive goods often require air transport. Containerization Containerization consists of putting goods in boxes or trailers that are designed for easy transfer between two transportation modes. Key forms include: Piggyback describes the use of rail and trucks. Fishyback refers to the use of water and trucks. Tranship involves water and rail. Airtruck combines air and trucks.
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