This presentation includes how an organisation manages various distribution channels in order to make it reach to the ultimate consumers.

1. Managing Distribution
Channels

2. Subject : Marketing Managemen
Submitted To : Dr. Aarti Joshi
Submitted By : Pallavi Priya
MBA, Semester – II
Date : 6 March 2017

3. Distribution Channels
Distribution channels in marketing are one of
the classic “4 Ps” (product, promotion, price,
placement also known as “distribution”). They
are the key elements in your entire marketing
strategy.

4. Meaning
Distribution/Marketing channels are set of
interdependent organizations involved in the
process of making the product or service
available for use or consumption
 They are a set of paths or routes through
which goods and services travel to get from
the place of production or manufacture to the
final users

5. Intermediaries
 Merchants:
Wholesalers and retailers who buy, take title to and
resale the merchandise
 Agents:
Brokers, manufacturers’ representatives, sales agents
who search for customers and may negotiate on the
producer’s behalf but do not take the title to the goods
 Facilitators:
Transportation companies, independent warehouses,
banks, advertising agencies who assist in the distribution
process but neither take title to goods nor negotiate
purchases or sales

6. Strategies:
Marketing
Strategy
Push
Strategy
Pull
Strategy

7. Push Strategy
 Push strategy: Producers induce
intermediaries to carry, promote and sell
products and services to the end users through
its sales force, trade promotions and other
means.
 Appropriate when:-
1. Low brand loyalty
2. Brand choice is made in the store
3. Product is an impulse item
4. Product benefits are well understood

8. Pull Strategy
 Pull strategy: Manufacturers use advertising,
promotion and other forms of communication to
persuade consumers to demand the product
from intermediaries, thus inducing
intermediaries to order it from producer.
 Appropriate when:-
1. Brand loyalty is high
2. High involvement in the category
3. Brand distinction is possible
4. Brand selection prior to purchase

9. Classification of Channels/Channel Levels
Channels of distribution
0-level 1-level 2-level 3-level

10. 0-level 1-level 2-level 3-level
manufacture
consumer
Manufacturer manufacturer manufacturer
retailer
consumer
wholesaler
retailer
consumer
wholesaler
jobber
retailer
consumer

11. Consumer and INDUSTRIAL Marketing Channels

12. SERVICE SECTOR CHANNELS
 Service Industries such as banking, insurance,
travel, hospitals and stock buying and selling, all
are operating through new channels because of
the advancement of internet and other
technologies
 Such as Apollo hospitals uses multiple modes
that are:
 Apollo Reach hospitals for small towns
 Apollo clinic in various parts of large cities
 Apollo Health Street
 Apollo Global Projects Consultancy

13. Direct Channel or Zero Level
Channel:
TYPES OF CHANNELS

14. Conti...
Example
 Eureka Forbes and Amway sell products door-to-
door, through home and office sales parties and
on the web. Likewise, Dell also does sales directly
through online
The remaining channels are Indirect Marketing
Channels , containing one or more
intermediaries.

15.  One Level Channel:
Manufacturer Retailer Consumer

16. Two Level Channel:
Manufacturer
Wholesale
r
Retailer Consumer

17. Three Level Channel
Manufacturer
Wholesale
r
Dealer Retailer
Consumer