The document discusses marketing channels and the distribution of products. It defines a marketing channel as the route that goods and services take from a producer to the final consumer. It also discusses the objectives, functions, and structure of distribution channels, as well as factors that influence channel selection such as product, market, company, and middlemen considerations. Finally, it outlines the components of physical distribution, including transportation, warehousing, material handling, inventory management, and order processing.

1. Marketing Channel
Dr. Gopal Thapa
Tribhuvan University
Kathmandu, Nepal
thapazee@gmail.com
2/7/2021
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2. Marketing Channel
A channel is the pipe line through which a product flows on its
way to the consumer.
Distribution channels are systems of economic institution
through which a producer of goods delivers them into the hands
of their uses.
--------------- R. Baskrick
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3. Marketing Channel
• Marketing channel can be viewed as set of
interdependent organizations involved in the
process of marketing a product or service available
for use or consumption.
• ------------------ Stern
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4. Marketing Channel
• A channel of distribution for a product is the route
taken by the title of goods as they move from the
producer to the ultimate consumer or industrial
user.
---------------Stanton
2/7/2021
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5. Marketing Channel
• Marketing channel is the path or route taken by
goods or services as they move form producer to
final consumer.
• -------------- Dictionary of Marketing
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6. Objectives of Distribution
• Flow of goods
• Available of goods
• Accessibility of goods
• Efficiency
• Customer satisfaction
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7. Important of distribution
Channel functions
• Efficiency
• Communication
• Financing
• Value addition
• Employment
• Competition
• Standard of living
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8. Role of Channel of Distribution
in Marketing
• Information
• Promotion
• Contact
• Matching
• Negotiation
• Physical Distribution
• Financing
• Risk Bearing
• Ordering
• Payment
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9. Channel Structure
• Direct channel
• Indirect channel
• Mixed channel
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10. Factors Influencing the Selection of
Distribution Channel
• Product Consideration
• Market Consideration
• Middlemen Consideration
• Company Consideration
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11. Product Consideration
• Cost per unit
• Technical nature
• Product line
• Perishable product
• Size and weight
• Quality of product
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12. Market Consideration
• Quantity and position of customer
• Cash of credit sales
• Environment: govt. policy, legal provision,
pressure group
• Buying habit of consumer
• Consumer or industrial market
• Competition
• Nature of order
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13. Middlemen Consideration
• Comparative cost
• Service
• Capacity of middlemen
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14. Company Consideration
• Size of company
• Distribution objectives
• Management of company
• Financial Condition
• Goodwill of company
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15. Physical Distribution
• Physical distribution consists of all the activities
involved in the flow of products as they move
physically from producer to consumer or industrial
user.
• STANTON
2/7/2021
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16. Components of Physical
Distribution
• Transportation
• Warehousing
• Material handling
• Inventory management
• Order processing
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17. Transportation
• Carrier Type
• Private carrier
• Common carrier
• Contract carrier
• Mode of Transport
• Road, rail, water, air, human, pipeline, ropeway etc.
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18. Selection of Mode of Transport
• Cost
• Speed
• Consistency
• Safety
• Availability
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19. Order Processing
• Set of procedures for receiving, handling and filling
orders
• It includes:
• Receiving orders
• Handling orders
• Filling orders
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20. Warehousing
• Private or public warehouse
• Number of warehouse
• Location of warehouse
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21. Material Handling
• Selecting prover equipment to physically handle
products
• Mechanical handling
• Non-mechanical handling
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22. Inventory Management
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• Control of inventory cost
• Ordering cost
• Carrying cost
• Stock out cost
• Control of inventory levels
• EOQ
• ABC
• JIT
• Red line
• Perpetual inventory system
• Two bin card system

23. Any Queries?
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