The document discusses channels of distribution, emphasizing the planning and management involved in moving products from suppliers to customers. It highlights the importance of understanding industry forces, customer needs, and the structure of channel systems for effective distribution. The document also presents data on the growth of U.S. e-commerce sales from 2010 to 2016.

2. A channel of distribution refers to venue that a company chooses for
moving its products or services out into the world.

3. S
U
P
P
L
I
E
R
Distributor/Wholesaler
Broker
Retailer
Supplier own sales & distribution
C
U
S
T
O
M
E
R
Retailer

4. Channel Stewardship refers to planning and responsible management of
channel of distribution.
Decisions about channels
Design Decision Management Decision

5. Group of senior
managers
Ensure customer
satisfaction
Create value for
customer

6. Mapping the Industry
Channels
Building and Updating the
Channel value Chain
Aligning & Influencing the
Channel System

7. • In Channel Stewardship mapping a given industry’s channel calls for
understanding the major forces that drive the short term and long term
distribution channels in that industry
Customer wants and
needs
Channel power and
influence
Channel capabilities &
cost
Competitive posture &
action

8. • This principle helps in refining the first principle so that it is more
effective in meeting its channel goals.
Direct vs Indirect
Constructing a channel
value chain
Channel coverage Channel structure

9. • This principle is regarding the implementation of the carefully build &
updated channel value chain.
Hard Power
High performance
channel system
Soft power of trust &
commitment
Managing horizontal
channel conflict

10. USA estimated sales
$225.5 billion (2012)
Up by
15.8 %
2011 - $500 Billion Grow
9% till
2017
2014 - $1.5 Trillion

11. 35.7
28
14.4
16.2
41.9
34.2
17.2
17
48.6
41
20.4
18.3
80.2
73
34.7
24
COMPUTERS APPARELS BOOKS AUTO & PARTS
USA E-COM SALES
2010 2011 2012 2016 E