The document discusses channel management and selection of distribution channels. It describes different types of channels including direct marketing channels with no intermediaries and indirect marketing channels with various levels of intermediaries like retailers and wholesalers. It also discusses different intermediaries like agents, wholesalers, retailers and their roles. Key factors for selecting appropriate channels are discussed like market factors, customer preferences, product characteristics and competition.

1. Selection of
Channels
A Sales & Distribution Presentation

2. Presented By
Arti

3. Channel Management
Channel Management is a process by which a producer or supplier directs
marketing activity by involving and motivating the entities comprising its
channel of distribution
Various Channels are: Wholesalers, Retailers, Distributors & Agents

4. Market Intermediaries
Middlemen
Marketing Intermediaries
Agent or Broker
Wholesaler
Retailer
Distributor
Value-added Resellers
Merchants
Facilitating Agents

5. Need for
Distribution Channels

6. Types of Channels
 Direct Marketing Channel
 Indirect Marketing Channel

7. Direct Marketing Channel
Direct Marketing Channel (or Zero Level)
This type of channel has no intermediaries. In this distribution system, the goods
go from the producer directly to the consumer, e.g., Amway, Eureka Forbes.

8. Indirect Marketing Channel
Level- 4
Level- 3
Consumers
Level- 2
Consumers Retailer
Level- 1
Consumers Retailer Wholesalers
Consumers Retailer Wholesalers Distributor
Retailer Wholesalers Distributor Agent
Producers

9. Channel Strategy Decisions
Market Factors
Channel Selection Criteria
 Customer Preference
 Organizational Customers
 Geography
Competitors
Nature & Availability of Intermediaries
Product Factors
 Life Cycle
 Selling Price/Unit
 Perishability
 Size & Weight
 Consumer Perceptions

10. Key Issues in Determining Channel Requirement
While a manufacturer faces an agenda of issues related to finance, marketing and industrial
relations, attention is focused on selected topics that directly impact marketing channel
arrangements. The key issues related to this are:
 Product proliferation and dynamics; and
 Total-quality initiatives.
These two issues are significant drives for a typical firm in determining how channel
requirements will be delineated.

11. Manufacturing Strategy

12. Wholesalers
Wholesale trade is defined as “all establishments or places of business primarily
engaged in selling merchandise to retailers; to industrial, commercial,
institutional or professional users or to other wholesalers; or acting as agent in
buying merchandise for or selling merchandise to such persons or companies”.
1. Merchant Wholesalers
2. Agent Wholesalers
3. Manufacturers’ Sales branches and offices

13. Merchant Wholesalers
Merchant Wholesalers
Wholesalers  Full Function or Service Wholesalers
 Limited Function Wholesalers
 Cash & Carry Wholesalers
 Drop Shippers
 Truck Wholesalers
 Mail Order Wholesalers
 Prod. & Retail Cooperative

14. Agent Wholesalers
Agent Wholesalers
 Manufacturers’ Agent
Wholesalers
 Brokers
 Commission Merchant
 Selling Agents
 Commercial Auction Companies
Manufacturer’s Sales Branches and Sales Offices

15. Selecting Wholesalers
A wholesaler is generally selected on the basis of his performance
evaluation. Before selecting wholesalers, manufacturers’ analyze a
wholesaler on the basis of the following questions:
 How can a wholesaler serve a supplier?
 How can a wholesaler serve a retailer?
 How can a wholesaler serve business users?

16. Strategic Management of Wholesalers
Wholesalers
Strategic Management of Wholesalers
 Effectiveness
 Profitability
 Niche Marketing
 Proprietary Brand
 New Technology

17. Introduction to Retailing
Retailing
It include all activities incidental to selling to ultimate consumer.
According to ‘William.J.Stanton’, “A retailer or a retail store is a business
enterprise which sells primarily to ultimate consumers for non business use.”

18. Function of Retailing
Collect product assortment
and offer them for sale
Product Information
Retailers
Mark prices and pay for
goods
Conclude Transaction with
final consumer

19. Relation Between Retailers & Suppliers
Selling goods or services Selling goods or services
for use of retailer for reselling by retailer

20. Wheel of Retailing
Innovation
Vulnerability Trading Up

21. Thank You