Marketing channels are intermediaries that help manufacturers distribute products to consumers. They provide distribution efficiency, minimize contacts needed to reach consumers, break bulk and cater to small requirements, and supply suitable product assortments. When designing a channel system, firms consider objectives, functions, product characteristics, the distribution environment, competitors' channels, available resources, and alternatives. The optimal design depends on balancing control, costs, and serving market needs.
1. The document discusses various aspects of marketing channels including marketing channel design, market testing, and segmentation for marketing channel design.
2. It provides definitions of marketing channels and discusses important concepts like marketing flows in channels, who belongs to a marketing channel, and the work of marketing channels.
3. The document also discusses channel analysis framework including channel design process, channel implementation process, and concepts like channel power and channel conflict.
This document discusses channel management decisions in marketing. It covers selecting, motivating, and evaluating channel members. It describes different types of channel systems like vertical marketing systems, horizontal marketing systems, and multi-channel marketing systems. It also discusses causes of channel conflict and ways to manage conflict, such as establishing super-ordinate goals and exchanging staff between channel levels. The document provides examples and selection criteria for different channel member roles like carrying and forwarding agents and distributors. It also analyzes power sources for motivating channel members.
This document discusses distribution channels and sales and distribution management. It defines distribution channels as sets of interdependent organizations that make products available for consumption. Effective distribution channels help address spatial, temporal, breaking bulk, assortment, and financial discrepancies between production and consumption. The key types of distribution channel members discussed are C&FAs, distributors, dealers, stockists, agents, wholesalers and retailers. The document also outlines different distribution strategies like intensive, selective and exclusive distribution.
This document discusses key aspects of marketing channel design. It notes that channel design must be linked to channel objectives, customer characteristics, product characteristics, and available company resources. It also emphasizes evaluating competitors' channel designs and the distribution environment. The best channel design will be one that delivers the most value to customers through an appropriate number of tiers and level of channel intensity. A multi-channel or hybrid model may provide benefits like increased market coverage and customization.
Marketing channel & supply chain management (principles of marketing)Denni Domingo
1) A supply chain consists of upstream suppliers and downstream distribution channels that help produce and deliver products to customers. It is important for marketers to consider both the supply chain and demand chain in their planning.
2) Most producers use intermediaries like wholesalers and retailers to help distribute products through marketing channels to reach more customers. These intermediaries help bridge gaps in time, place, and ownership.
3) When designing marketing channels, companies must evaluate alternatives based on meeting customer needs while optimizing costs, control, and adaptability to changes in the environment. Managing relationships with strong channel partners is also important for success.
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.
Marketing channels, also known as distribution channels, are a set of interdependent organizations involved in making a product available to consumers. They include manufacturers, wholesalers, retailers, and other intermediaries. There are different types of intermediaries and levels within marketing channels, from direct channels with no intermediaries to channels with multiple levels of intermediaries. Properly designing marketing channels requires analyzing customer needs, setting objectives, identifying alternatives, and evaluating alternatives based on economic, control, and adaptive criteria. Managing channels also requires selecting, motivating, and evaluating channel members over time.
Chapter 18 marketing channels and physical distribution marketing managementmerryncevalcorza
The document discusses marketing channels and physical distribution. It defines a marketing channel as a system of relationships between businesses involved in buying and selling products. It describes different types of channels for consumer and industrial products. It also discusses factors that affect channel selection, objectives, intensity of market coverage, terms and conditions, evaluation of alternatives, selection and training of intermediaries, performance evaluation, and modification of channels. Finally, it covers physical distribution functions like order processing, inventory management, warehousing, and transportation of goods.
1. The document discusses various aspects of marketing channels including marketing channel design, market testing, and segmentation for marketing channel design.
2. It provides definitions of marketing channels and discusses important concepts like marketing flows in channels, who belongs to a marketing channel, and the work of marketing channels.
3. The document also discusses channel analysis framework including channel design process, channel implementation process, and concepts like channel power and channel conflict.
This document discusses channel management decisions in marketing. It covers selecting, motivating, and evaluating channel members. It describes different types of channel systems like vertical marketing systems, horizontal marketing systems, and multi-channel marketing systems. It also discusses causes of channel conflict and ways to manage conflict, such as establishing super-ordinate goals and exchanging staff between channel levels. The document provides examples and selection criteria for different channel member roles like carrying and forwarding agents and distributors. It also analyzes power sources for motivating channel members.
This document discusses distribution channels and sales and distribution management. It defines distribution channels as sets of interdependent organizations that make products available for consumption. Effective distribution channels help address spatial, temporal, breaking bulk, assortment, and financial discrepancies between production and consumption. The key types of distribution channel members discussed are C&FAs, distributors, dealers, stockists, agents, wholesalers and retailers. The document also outlines different distribution strategies like intensive, selective and exclusive distribution.
This document discusses key aspects of marketing channel design. It notes that channel design must be linked to channel objectives, customer characteristics, product characteristics, and available company resources. It also emphasizes evaluating competitors' channel designs and the distribution environment. The best channel design will be one that delivers the most value to customers through an appropriate number of tiers and level of channel intensity. A multi-channel or hybrid model may provide benefits like increased market coverage and customization.
Marketing channel & supply chain management (principles of marketing)Denni Domingo
1) A supply chain consists of upstream suppliers and downstream distribution channels that help produce and deliver products to customers. It is important for marketers to consider both the supply chain and demand chain in their planning.
2) Most producers use intermediaries like wholesalers and retailers to help distribute products through marketing channels to reach more customers. These intermediaries help bridge gaps in time, place, and ownership.
3) When designing marketing channels, companies must evaluate alternatives based on meeting customer needs while optimizing costs, control, and adaptability to changes in the environment. Managing relationships with strong channel partners is also important for success.
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.
Marketing channels, also known as distribution channels, are a set of interdependent organizations involved in making a product available to consumers. They include manufacturers, wholesalers, retailers, and other intermediaries. There are different types of intermediaries and levels within marketing channels, from direct channels with no intermediaries to channels with multiple levels of intermediaries. Properly designing marketing channels requires analyzing customer needs, setting objectives, identifying alternatives, and evaluating alternatives based on economic, control, and adaptive criteria. Managing channels also requires selecting, motivating, and evaluating channel members over time.
Chapter 18 marketing channels and physical distribution marketing managementmerryncevalcorza
The document discusses marketing channels and physical distribution. It defines a marketing channel as a system of relationships between businesses involved in buying and selling products. It describes different types of channels for consumer and industrial products. It also discusses factors that affect channel selection, objectives, intensity of market coverage, terms and conditions, evaluation of alternatives, selection and training of intermediaries, performance evaluation, and modification of channels. Finally, it covers physical distribution functions like order processing, inventory management, warehousing, and transportation of goods.
This document discusses marketing channels and channel management. It begins by defining marketing channels as the set of interdependent organizations involved in making a product available for use or consumption. It then discusses the importance of channels in converting potential buyers to profitable consumers and creating markets. The document provides examples of pull and push strategies and hybrid/multichannel marketing. It also discusses value networks, benefits of demand chain planning, roles of marketing channels, channel functions and flows. The rest of the document focuses on channel design, evaluation, selection, training, motivation, and modification. It discusses vertical marketing systems, horizontal marketing systems, and multichannel marketing systems. It also addresses causes of channel conflict and the need for coordination.
This document discusses marketing channels and distribution strategies. It defines marketing channels and discusses their objectives, functions, types including intensive distribution, selective distribution and exclusive distribution. It also covers topics like consumer and business channels, marketing flows, importance of channels, channel design process and attributes of different channel strategies.
This document provides an introduction to marketing channels and distribution. It defines what a marketing channel is and explains why manufacturers use intermediaries. The key members of marketing channels are producers, wholesalers, retailers, and end users. Channels add value through activities like sorting, accumulating, allocating, and assorting products. Channels also allow for the routinization of transactions and reduction in the number of customer contacts. The document outlines important channel concepts like physical possession, promotion, negotiation, financing, and risk taking that flow between members.
This document discusses key considerations for designing a marketing channel system:
1) Analyzing customer needs including desired service output levels in terms of factors like lot size, waiting time, convenience, product variety, and service backup.
2) Establishing channel objectives and identifying major channel alternatives to evaluate.
3) Evaluating alternatives involves assessing factors like service output levels, costs, and prices as increased service requires higher channel costs and product prices.
This document discusses different types of integrated marketing channels. It describes horizontal marketing systems (HMS) which integrate related businesses to achieve economies of scale, though they can lack coordination. Vertical marketing systems (VMS) allow for better control of behavior and elimination of conflicts between members. Multi-channel distribution systems combine different channels and provide increased coverage but also more conflicts. The document provides examples of common channel structures for consumer goods, industrial goods, and services.
In this presentation, we will discuss about various aspects of marketing channels, needs and importance, how physical distribution and channel decision are critical for marketing channels, how does marketing channel functions. We will also talk about the various distributions channel structures.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
Marketing channels represent sets of interdependent organizations that help make a product available to consumers. They perform functions like information gathering, order processing, financing inventory, and facilitating payment. Manufacturers use either a push strategy by incentivizing distributors to promote products, or a pull strategy by advertising directly to consumers. Selecting channels depends on market, product, organizational and competitive factors. Channel conflicts can occur between members at different levels over issues like pricing. This document discusses the roles and types of marketing channels and intermediaries that connect producers and consumers.
This document discusses marketing channels and supply chain management. It defines marketing channels and intermediaries. It describes different types of marketing channels for consumer goods, business goods, and services. It discusses channel strategy decisions around selection, control, and determining distribution intensity. It also covers topics like logistics, transportation, warehousing, inventory control, and the integration of marketing channels into vertical marketing systems.
1. Physical distribution channels refer to the methods used to transfer products from production to customers.
2. Companies have a variety of alternative channels to choose from to reach customers, often using a mix to target different buyer segments.
3. Alternative channels are described by the type and number of intermediaries used as well as the terms of responsibilities between members. Common alternatives include manufacturer direct to retail, manufacturer to wholesaler to retail, mail order, internet shopping, and factory direct to home or business.
The document discusses marketing channels and distribution, defining marketing channels as the network that creates time, place, and possession utilities for consumers. It examines the structure of marketing channels in terms of length, intensity at various levels, and types of intermediaries. The document also outlines how companies manage marketing channels by formulating channel strategies, designing channel structures, selecting and motivating channel members, and coordinating with other elements of the marketing mix.
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.
This document provides an overview of channel design and channel conflict. It discusses key topics such as the meaning of channels of distribution and channel functions. It also describes different types of channels including zero-level, one-level, two-level, and three-level channels. Additionally, it covers factors that influence channel selection and the relationship between product type, shopping effort, and intensity of distribution.
1) Marketing channels exist to perform needed functions like distribution at lower cost than if a customer or manufacturer acted alone.
2) When designing distribution channels, key objectives include increasing product availability, satisfying customer service needs, ensuring promotional support, obtaining market information, maintaining cost-effectiveness and flexibility.
3) Common institutions in marketing channels include merchant wholesalers, agents, retailers and non-store retailers. The best alternative depends on the priorities around these objectives and a company's competitive strategy.
Cadbury uses a multi-level marketing channel to distribute its chocolate products throughout India. Cadbury has manufacturing units that send products to depots in different states. The depots then send products to C&F agents, who distribute to local distributors in cities. The distributors then work to get products to local grocery stores where consumers make purchases. Choosing an effective marketing channel depends on factors like the product, market characteristics, manufacturer capabilities, and government regulations.
The document discusses the stages in channel planning which includes segmentation, positioning, and focus. It defines segmentation as clustering customers based on their expectations, positioning as defining the channel elements to service each segment, and focus as deciding which segments to address. The document also discusses defining customer needs based on expected service levels, defining channel objectives to support customer service, and considering the cost and alternatives of channel systems.
The STP process is an important marketing concept involving segmentation, targeting, and positioning. Segmentation involves dividing the overall market into groups with similar characteristics. Targeting involves selecting specific market segments to focus on. Positioning is how the product is designed to be perceived in the marketplace against competitors. The goal of STP is to guide development of an appropriate marketing mix.
Channel Power & Conflict and Channel DynamicsNavin Raj Saroj
This document discusses channel power, conflict, and dynamics. It defines channel power as a member's ability to influence other members' behavior. The five bases of power are reward, coercion, expertise, reference, and legitimacy. Channel conflict can occur vertically between different levels, horizontally between members at the same level, between different types of members, and with multiple channels. Conflicts arise from incompatible goals, unclear roles, and dependence. Managing conflict involves communication, councils, co-optation, arbitration, and mediation. Channel dynamics include gaining member acceptance, physical distribution, legal issues like exclusivity and tying arrangements, and factors like output, lot size, waiting time, convenience, variety, and service.
Distribution channels involve a set of intermediaries that make products available for consumption. Channel decisions affect other marketing decisions and involve long-term commitments. Intermediaries provide efficiency, contacts, experience, specialization, and scale of operation to match supply and demand. Channels perform information, promotion, contact, negotiation, physical distribution, financing, and risk-taking functions. Effective channels cooperate to attain goals and satisfy customers, while conflict occurs from focus on individual goals. Logistics management involves the supply chain to provide targeted customer service levels at least cost through functions like order processing, warehousing, inventory, and transportation management.
The document discusses 4 important questions for efficient marketing: 1) What are they selling? 2) How much? 3) Why should I trust them? 4) What is my benefit? It emphasizes the importance of sincerity and communicating simply what customers gain versus lose. An example is given of Domino's pizza marketing focusing on delivering hot, fresh, tasty pizza within 30 minutes or customers get their order free.
This document provides an overview of key marketing concepts including the importance of marketing, definitions of marketing, concepts such as the marketing mix and relationship marketing. It discusses bases for market segmentation and requirements for effective segmentation. Finally, it encourages asking questions to clarify marketing concepts and addresses in a friendly manner.
This document discusses marketing channels and channel management. It begins by defining marketing channels as the set of interdependent organizations involved in making a product available for use or consumption. It then discusses the importance of channels in converting potential buyers to profitable consumers and creating markets. The document provides examples of pull and push strategies and hybrid/multichannel marketing. It also discusses value networks, benefits of demand chain planning, roles of marketing channels, channel functions and flows. The rest of the document focuses on channel design, evaluation, selection, training, motivation, and modification. It discusses vertical marketing systems, horizontal marketing systems, and multichannel marketing systems. It also addresses causes of channel conflict and the need for coordination.
This document discusses marketing channels and distribution strategies. It defines marketing channels and discusses their objectives, functions, types including intensive distribution, selective distribution and exclusive distribution. It also covers topics like consumer and business channels, marketing flows, importance of channels, channel design process and attributes of different channel strategies.
This document provides an introduction to marketing channels and distribution. It defines what a marketing channel is and explains why manufacturers use intermediaries. The key members of marketing channels are producers, wholesalers, retailers, and end users. Channels add value through activities like sorting, accumulating, allocating, and assorting products. Channels also allow for the routinization of transactions and reduction in the number of customer contacts. The document outlines important channel concepts like physical possession, promotion, negotiation, financing, and risk taking that flow between members.
This document discusses key considerations for designing a marketing channel system:
1) Analyzing customer needs including desired service output levels in terms of factors like lot size, waiting time, convenience, product variety, and service backup.
2) Establishing channel objectives and identifying major channel alternatives to evaluate.
3) Evaluating alternatives involves assessing factors like service output levels, costs, and prices as increased service requires higher channel costs and product prices.
This document discusses different types of integrated marketing channels. It describes horizontal marketing systems (HMS) which integrate related businesses to achieve economies of scale, though they can lack coordination. Vertical marketing systems (VMS) allow for better control of behavior and elimination of conflicts between members. Multi-channel distribution systems combine different channels and provide increased coverage but also more conflicts. The document provides examples of common channel structures for consumer goods, industrial goods, and services.
In this presentation, we will discuss about various aspects of marketing channels, needs and importance, how physical distribution and channel decision are critical for marketing channels, how does marketing channel functions. We will also talk about the various distributions channel structures.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
Marketing channels represent sets of interdependent organizations that help make a product available to consumers. They perform functions like information gathering, order processing, financing inventory, and facilitating payment. Manufacturers use either a push strategy by incentivizing distributors to promote products, or a pull strategy by advertising directly to consumers. Selecting channels depends on market, product, organizational and competitive factors. Channel conflicts can occur between members at different levels over issues like pricing. This document discusses the roles and types of marketing channels and intermediaries that connect producers and consumers.
This document discusses marketing channels and supply chain management. It defines marketing channels and intermediaries. It describes different types of marketing channels for consumer goods, business goods, and services. It discusses channel strategy decisions around selection, control, and determining distribution intensity. It also covers topics like logistics, transportation, warehousing, inventory control, and the integration of marketing channels into vertical marketing systems.
1. Physical distribution channels refer to the methods used to transfer products from production to customers.
2. Companies have a variety of alternative channels to choose from to reach customers, often using a mix to target different buyer segments.
3. Alternative channels are described by the type and number of intermediaries used as well as the terms of responsibilities between members. Common alternatives include manufacturer direct to retail, manufacturer to wholesaler to retail, mail order, internet shopping, and factory direct to home or business.
The document discusses marketing channels and distribution, defining marketing channels as the network that creates time, place, and possession utilities for consumers. It examines the structure of marketing channels in terms of length, intensity at various levels, and types of intermediaries. The document also outlines how companies manage marketing channels by formulating channel strategies, designing channel structures, selecting and motivating channel members, and coordinating with other elements of the marketing mix.
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.
This document provides an overview of channel design and channel conflict. It discusses key topics such as the meaning of channels of distribution and channel functions. It also describes different types of channels including zero-level, one-level, two-level, and three-level channels. Additionally, it covers factors that influence channel selection and the relationship between product type, shopping effort, and intensity of distribution.
1) Marketing channels exist to perform needed functions like distribution at lower cost than if a customer or manufacturer acted alone.
2) When designing distribution channels, key objectives include increasing product availability, satisfying customer service needs, ensuring promotional support, obtaining market information, maintaining cost-effectiveness and flexibility.
3) Common institutions in marketing channels include merchant wholesalers, agents, retailers and non-store retailers. The best alternative depends on the priorities around these objectives and a company's competitive strategy.
Cadbury uses a multi-level marketing channel to distribute its chocolate products throughout India. Cadbury has manufacturing units that send products to depots in different states. The depots then send products to C&F agents, who distribute to local distributors in cities. The distributors then work to get products to local grocery stores where consumers make purchases. Choosing an effective marketing channel depends on factors like the product, market characteristics, manufacturer capabilities, and government regulations.
The document discusses the stages in channel planning which includes segmentation, positioning, and focus. It defines segmentation as clustering customers based on their expectations, positioning as defining the channel elements to service each segment, and focus as deciding which segments to address. The document also discusses defining customer needs based on expected service levels, defining channel objectives to support customer service, and considering the cost and alternatives of channel systems.
The STP process is an important marketing concept involving segmentation, targeting, and positioning. Segmentation involves dividing the overall market into groups with similar characteristics. Targeting involves selecting specific market segments to focus on. Positioning is how the product is designed to be perceived in the marketplace against competitors. The goal of STP is to guide development of an appropriate marketing mix.
Channel Power & Conflict and Channel DynamicsNavin Raj Saroj
This document discusses channel power, conflict, and dynamics. It defines channel power as a member's ability to influence other members' behavior. The five bases of power are reward, coercion, expertise, reference, and legitimacy. Channel conflict can occur vertically between different levels, horizontally between members at the same level, between different types of members, and with multiple channels. Conflicts arise from incompatible goals, unclear roles, and dependence. Managing conflict involves communication, councils, co-optation, arbitration, and mediation. Channel dynamics include gaining member acceptance, physical distribution, legal issues like exclusivity and tying arrangements, and factors like output, lot size, waiting time, convenience, variety, and service.
Distribution channels involve a set of intermediaries that make products available for consumption. Channel decisions affect other marketing decisions and involve long-term commitments. Intermediaries provide efficiency, contacts, experience, specialization, and scale of operation to match supply and demand. Channels perform information, promotion, contact, negotiation, physical distribution, financing, and risk-taking functions. Effective channels cooperate to attain goals and satisfy customers, while conflict occurs from focus on individual goals. Logistics management involves the supply chain to provide targeted customer service levels at least cost through functions like order processing, warehousing, inventory, and transportation management.
The document discusses 4 important questions for efficient marketing: 1) What are they selling? 2) How much? 3) Why should I trust them? 4) What is my benefit? It emphasizes the importance of sincerity and communicating simply what customers gain versus lose. An example is given of Domino's pizza marketing focusing on delivering hot, fresh, tasty pizza within 30 minutes or customers get their order free.
This document provides an overview of key marketing concepts including the importance of marketing, definitions of marketing, concepts such as the marketing mix and relationship marketing. It discusses bases for market segmentation and requirements for effective segmentation. Finally, it encourages asking questions to clarify marketing concepts and addresses in a friendly manner.
12th bst project on marketing management Jasmeet Singh
This 3-page document provides guidelines and instructions for a class 12 business studies project on marketing management. It outlines the required sections and content for the project, including an introduction, survey of the market, product details, marketing mix strategies, packaging, distribution channels, promotion plans, pricing analysis, and conclusions. The project aims to enhance students' understanding of key marketing concepts and develop their analytical, creative, and presentation skills.
A presentation about digital marketing regarding Search Engine Optimization, Pay Per Click, and Social Media Marketing.
The presentation includes the advantages and disadvantages of SEO, PPC and Social Media Marketing and a short strategy that you can use with each one of them.
Marketing involves identifying and meeting human needs through exchange between buyers and sellers. There are three key elements in the marketing process: marketers, products being marketed, and target markets. The goal of marketing is to establish long-term, profitable relationships with customers by delivering superior value compared to competitors. This is achieved through understanding customer needs and wants, creating appropriate products and services, and engaging in effective exchanges to satisfy customers.
This document outlines the structure and content for a sample marketing management project. It includes sections on the cover page, index, introduction, competitors, product details, pricing, packaging, distribution, promotion, findings, conclusion, and appendices. The project aims to provide students a template to develop a marketing plan for a selected product, modify it with their own creativity, and demonstrate their understanding of key marketing concepts. It guides students through developing various elements of the marketing mix and product details over 24-30 pages.
Inside this guide, you'll learn an insiders tips and techniques to getting into the marketing industry - no job applications necessary.
You'll learn what marketing really is, why you'll find a job easily, what entry level marketing jobs look like and four actionable things you can try right now to help get you into the marketing industry.
Visit Inbound.org and the Inbound.org/jobs community jobs board to find opportunities and connect with professional marketers from all over.
Designing And Managing Integrated Marketing ChannelsKhawaja Naveed
The document discusses marketing channels and channel management. It describes the functions and flows of marketing channels, including different types of channels for consumer and industrial products. It examines factors like channel length, width, and levels. It also explores concepts around channel behavior, including types of conflicts and ways channels can be organized, such as through vertical marketing systems.
This document discusses marketing channels and distribution strategies. It defines marketing channels as the organizations and individuals that facilitate moving goods from producers to customers. The key functions of marketing channels are routinizing decisions, financing the distribution process, participating in pricing, communicating between producers and customers, assisting with promotion, and minimizing transactions. The document outlines different types of marketing channels for consumer and industrial goods, and factors to consider when evaluating and selecting marketing channels.
This document provides an overview of distribution strategies. It discusses key concepts like marketing channels, direct and indirect channels, and channel design decisions. The main points are:
- Distribution strategies involve plans for transferring products from manufacturers to customers through intermediaries and retailers. They guide market entry.
- Marketing channels are the interconnected organizations that make a product available, and can have different levels of intermediaries.
- Channel design decisions include analyzing customer needs, setting objectives, identifying alternatives like types/numbers of intermediaries, and evaluating alternatives based on economic, control, and adaptive criteria.
- Common channel alternatives discussed are intensive, exclusive, and selective distribution based on coverage, control, and customer preferences respectively.
Distribution Management, Need for Marketing Channels,Decision involved in setting up the channels, Management Strategies, Introduction to logistics Management, Retailing, wholesaling, Multi Channel Marketing.
This document discusses channel decision and alternatives. It begins by defining marketing channels and why they exist. The key objectives for designing distribution channels are increasing availability, satisfying customer requirements, ensuring promotion, obtaining market information, increasing cost-effectiveness, and maintaining flexibility. It then discusses the types of institutions that may be included like merchants, agents, retailers, and non-store retailers. When deciding on the best alternative, objectives, strategy, and costs must be considered. Transaction cost analysis and hybrid systems are also discussed. Finally, it covers channel design considerations for global markets.
The document discusses marketing channels and their functions. It defines marketing channels as the interconnected organizations and individuals that facilitate the movement of goods from producers to consumers. The key functions of marketing channels include circulating decisions, financing the distribution process, communicating between producers and consumers, assisting with promotions, and minimizing transactions. The document also examines types of marketing channels, factors that influence channel selection, and distribution strategies.
The document discusses distribution channels and marketing mix. It defines distribution channels as sets of interdependent organizations that make a product available for consumption. Distribution channels help address spatial, temporal, bulk-breaking, assortment, and financial needs. They provide place, time, and possession utilities to consumers. The document outlines different players in distribution channels like C&FAs, distributors, wholesalers, retailers. It also discusses types of distribution patterns and strategies for designing effective distribution channel systems.
Marketing channels refer to the intermediaries used by companies to distribute products to consumers. Channels play an important role in delivering value by physically distributing products and providing supporting services. There are different types of marketing channels that vary based on their functions and characteristics. When designing a channel system, companies must consider objectives, customer and product characteristics, and available resources to determine the appropriate channel intensity and structure. Both choosing the wrong channel intensity and failing to properly manage selected channels can negatively impact sales and productivity.
This document discusses marketing channels and channel management. It begins by defining key channel concepts like push and pull strategies, multichannel marketing, omnichannel marketing, and integrated marketing channels. It then covers channel functions, levels, and member functions. The rest of the document discusses channel design decisions, evaluating alternatives, managing channel members, and resolving conflicts.
This document discusses marketing channels. It defines marketing channels as the network of individuals and organizations involved in moving a product from producer to consumer. This includes intermediaries like wholesalers, agents and retailers. The document outlines different types of channels and considerations for channel selection like consumer preferences, costs, branding, and localization. Key factors in selecting channels are understanding consumer habits, balancing costs with desired volume and margins, maintaining brand equity, and using channels to enter new markets.
This document discusses marketing channels and channel management. It defines marketing channels as interdependent organizations that make a product available for consumption. It describes push and pull strategies and discusses channel design considerations like length, intermediaries, and terms. It also covers channel integration, managing conflict, and achieving cooperation between members. The key topics covered are channel structure and flow, designing channels, selecting and evaluating members, and addressing vertical and horizontal conflicts.
This document discusses distribution management and distribution channels. It defines distribution management as overseeing the movement of goods from suppliers to point of sale, including packaging, inventory, warehousing, supply chain and logistics. A distribution channel is the chain of businesses that a good passes through to reach the end consumer. Distribution channels can be short or long and depend on the number of intermediaries. The roles of distribution channels include enhancing efficiency, smoothing the flow of goods and services, reducing transaction costs, facilitating search, and providing proximity to consumers with less required stock from producers. The document also discusses types of distribution channels, market intermediaries, and functions of intermediaries.
Here are the key differences between direct and indirect channels in a table:
|Direct Channels|Indirect Channels|
|-|-|
|The manufacturer's own sales force deals directly with the customer|-|
|The manufacturer has full responsibility for performing all necessary channel tasks|Uses at least one type of intermediary such as distributors or manufacturers' representatives|
|Common in business marketing when selling involves extensive negotiations with upper management or when selling has to be tightly controlled|-|
|Examples: IBM, Intel|-|
|Feasible when sales volumes are high or products are simple|-|
The selection of channel members is important when putting up a business because the channel members are crucial partners that help the business reach its
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H:\Mba\6th Term\Markma\10 Questions For Designing And Managing Integated Mark...Arvin Matias
This document contains a series of questions and answers about marketing channels and buyer behavior. It discusses the following key points:
- There are four main categories of buyers: habitual shoppers, high-value deal seekers, variety-loving shoppers, and high-involvement shoppers.
- A second-level marketing channel involves at least three parties: a manufacturer, a wholesaler, and a retailer between the manufacturer and consumer.
- The main types of channel conflicts are vertical between different levels, horizontal between same levels, and multichannel between independent channels.
- Channel members' functions include facilitating exchange through agreements, storage, and transfer of ownership but not modifying the product itself.
This document discusses marketing channels and channel intermediaries. It defines a marketing channel as the set of interdependent organizations involved in making a product available to consumers. Channel intermediaries like retailers, wholesalers, and brokers are described. The document also discusses different channel structures for consumer and business products, including direct channels and channels with multiple levels involving wholesalers and retailers. Channel strategies like intensive, selective, and exclusive distribution are explained along with examples. The importance of marketing channels in providing scale, creating product utility, facilitating exchange, and performing other functions is highlighted.
This document provides an overview of channels of distribution, including the nature and roles of intermediaries, designing distribution channels, selecting channel types, managing conflicts within channels, and considerations for international distribution channels. It discusses producer-retailer conflicts, legal considerations for dealer selection and exclusive contracts, and how the internet is changing distribution models.
Role of Distribution Channel in Marketing of FoodMansiGupta413277
For manufacturers, it is very important to create a mix of distribution channels that allow for ease of availability for the consumer, i.e., a good marketing mix. Based on the diversity and scope of a manufacturing business or any other business that can be found in the distribution process, the respective business needs to settle on a channel or channels that allow for good sales generation and ease of access for consumers.
This document is a chapter from a marketing textbook about marketing channel strategy. It discusses the key decisions involved in developing an effective channel strategy, including determining the role of distribution in a firm's overall objectives and strategies, and how distribution fits within the marketing mix. The chapter also defines marketing channel strategy and outlines the six basic distribution decisions that firms must address to achieve their distribution objectives.
The document discusses the product life cycle, which describes the stages a product goes through from introduction to decline. It outlines the four stages: market pioneering, growth, maturity, and decline. For each stage, it provides features and implications for marketing strategy, such as pricing, competition levels, and costs. The product life cycle concept helps formulate strategies to prolong the profitable phase and determine optimal times for product investment or exit. However, limitations include difficulty measuring the product's stage and different products having varying life cycle shapes.
The document discusses the roles and responsibilities of sales executives. It describes their main functions as making decisions, planning short-term sales strategies, and overseeing the sales organization. Effective sales executives must be able to define duties, delegate tasks, utilize time efficiently, and exercise strong leadership. They are also responsible for maintaining good relationships with top management, product management, promotion management, pricing management, and distribution management.
5. Provide Distribution Efficiency
The channels bring together
manufacturer and user in an
economic manner and thereby
distribution efficiency to the
manufacturer.
6. Minimise number of contacts
needed for reaching consumers
When the channels are
dispensed with, the number of
contacts a manufacturer will
have to establish for reaching
out the consumers are far too
many.
7. Break the bulk and cater to
tiny requirements
Channels break the bulk and
meet small size needs of
individual consumers.
8. Supply products in suitable
assortments
The consumers normally need
an assortment of products. But
manufacturer can not provide
because it’s not feasible for him.
Thereby marketing channels are
needed.
9. Provide salesmanship
Buyers go by the
recommendation of the dealers.
The dealers establish the
products in the market through
their persuasive selling.
10. Help in Price Mechanism
Channels conduct price
negotiations with buyers and
assist in arriving at the right
price - the price that is
acceptable to the maker as well
as user.
11. Look After a Part of
Distribution and Financing
Channels also look after a part
of the phsycal distribution, order
processing and inventory
management and also share
financial burden.
12. Assist in merchandising
Merchandising; product
connected with a popular film,
singer, event, etc., or the selling
of these products.
13. Provide Market Intelligence
İn order to they are in constant
and direct contact with
customers, they can get
feedbacks of the customers.
14. Act as Change Agents and
Generate Demand
In some cases the marketing
task including diffusion of some
innovation among customers for
this reason channels go much
beyond of distribution.
15. Take Care of Flows Involved
in Distribution
The distribution process include
as a series of flows: physical
flow, the risk flow, the financing
payment flow… Marketing
channels handle of all these
flows.
16. Channel Functions Can not be
Eliminated
Firms assume that by
eliminating channels, they can
eliminate the channel costs.
When they do this, heavy
channel costs fall on company’s
shoulders.
17. Channel decisions have a bearing
other marketing decisions
The decisions on channel have
a vital bearing on other
decisions relating to marketing
For example pricing decisions
related to the channel pattern
adopted by the firm.
19. Sole-Selling Agent/Marketer
They are usually a large
marketing intermediary with
large resources and extensive
territory operation.
He takes care of most of the
marketing and distribution
behalf of the manufacturer.
20. C&F Agents (CFAs)
The CFAs can be described as
special category wholesalers.
Their function is distribution.
Their distinguishing
characteristic is they do not
resell products but act as the
agent of the manufacturer.
21. Semi-Wholesalers
Semi-wholesalers are
intermediaries who buy products
either from producers or
wholesalers.
They assist producer in
reaching a large number of
retailers efficiently
22. Retailer/Daler
Retailers sell to household
ultimate customers.
They are at the bottom of the
distribution. If the company
wants to use single tier, they
directly operate Retailer/Dealer.
23. DESİGNİNG A CHANNEL
SYSTEM
Every firms can use different
type of itermediaries. For
example, it can have a single-
tier or a two tier or a three tier
structure…
Steps:
24. 1. Formulating the Channel
Objectives
First step in desinging a channel
system.
The objectives clarify what is
sought to be achieved by having
the channels.
25. Channel objectives will decide
channel design
When Hindustan Lever lays
down the objective that Lifebuoy
should be available in more than
80 percent of the villages of
India, its channel design takes
shape in line with this objective.
26. Channel objectives will decide
channel design
Similar is the case, when FACT,
the fertiliser firm, lays down the
objective that in the home
market of company, no farmer
should have to travel more than
3 km to buy its product.
27. Channel objectives differ from firm
to firm; consequently their channel
designs differ
For example, intensity of
marketing coverage sought from
the channels and extent of
convenience to be provided to
the customer will vary from firm
to firm.
28. 2. Identifying Channel
Functions
Next step in designing a
channel system
Channel design depends on the
functions expected of the
channel and that functions must
be identified in specific context
in order to get practical
direction.
29. Linking Channel Design to
Product Characteristics
Different products require
different channel systems. The
firm should analyse the
characteristic of products and
choose the suit channel.
This factor in some detail:
32. Only some industrial products are
amenable for selling through
channels
The firm should check whether
its items are appropriate for
selling through channels. İf
“yes”, it must find out which type
of distributors will be
appropriate.
33. Even within consumer products,
channel requirements of different
products may vary
For example convenience
goods, shopping goods, and
speciality goods may need vary
of channel requirements.
34. The product’s PLC stage too
influence channel choice
PLC also helps channel
management. Different
channels fit different stages of
PLC.
35. The product’s PLC stage too
influence channel choice
A production in the introduction
stage will be relatively unknown
market. At this stage it
advantageous to sell product
directly to the customer,
dispensing with the channels.
36. Product influences type and
number of channel members as
well
For example for textiles or
shoes, franchises, who can run
showrooms, may be an effective
type of intermediary.
37. 4. Evaluation of the
Distribution Environment
Firm should evaluate the vital
features of the distribution
environment and ensure that the
proposed channel design is
compatible with them.
38. 5. Evaluation of Competitor’s
Channel Design
While the firm not necessarily
follow the competitors in
channel design is compatible
with them.
39. 6. Matching Channel Design
to Company Resources
Choice of channel is also
governed by the resources:
Firms with limited resources are
better off by depending on
conventional channels…
40. 6. Matching Channel Design
to Company Resources
Choice of channel is also
governed by the resources:
Firms with larger resources can
go in for varied distribution
channels
41. Evaluating the Alternatives
and Selecting Best
Two distinct evalutaions – an
economic evaluation and
conceptional evaluation – may
be necessary:
42. Economic evaluation; balancing
cost, efficiency and risk
Firm determines the unit cost of
selling in each of the
alternatives. The firm chooses
the one which is attractive from
the cost and lest risky.
44. Some Vital Aspects in
Finalising the Channel
The important aspects to be
decided are:
Channel intensity,
Number of tiers
The appropriate variant within
design.
45. Choosing the Channel
Intensity
For example, Maruti and
Mitsubishi India, being
passenger car firms operating
same market, may opt similar
channel design. But they may
settle for different channel
intensity.
46. Choosing the Number of Tiers
Correctly
Product type perhaps the most
important consideration.
For example for selling
passenger car fir need have
only one tier. Tootpastes or
cosmetics may need two or
three tiers.
47. Comparative merits of single-
tier and two-tier chanel
Single-tier Two-tier
Better motivation It helps quicker
to each member outflow of stocks
in the channel and more intensive
Firm can service coverage of the
all the outlets market.
directly But it results lower
The pattern profit to retailers
involves greater It also weakens
administrative the principal’s
burden control over outfit.
48. Selecting Appropriate Variant
within a Given Design
For example Nirma Chemicals
distributes Nirma soap with a
wholesalers-weighted system.
In contrast, HLL distributies its
Lifebuoy in the same market
through a retailer-weighted
system.
49. One Unified System
The firm has to handle
wholesaling, retailing and other
forms of selling as one unified
system and not seperate
entities.
50. Building channel system by
bottom-up method
Once the type of retailers suited
for context is determined, the
whole-saling arrangement that
would best suit the chosen retail
arrangement can be choosen
and put in place.