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Group No. 3
• Arun Kumar V. K
• Deepa Rose Jacob
• Molamma Abraham
• Jerry Jose
• Kichu V John
• Rithvik R Nair
• Rohit Nair


Physical distribution has become more
dynamic.



It

aims

to

maximize

customer

satisfaction.


Physical distribution and channel decisions
are critical in marketing management.
“an array of exchange relationships that create
customer

acquisition,

value

consumption,

products and services.“

in

and

disposition

the

of
"All

the

organizations

through

which

a

product must pass between its point of
production and consumption"

Producers

Intermediaries

Customers
“It

is

an

organized

network

interconnected

organizations

agencies

in

involved

the

process

of
and
of

making a product or service available to

customers.”
CHANNEL OPTIONS





Option-1
Direct marketing without middlemen.
Option-2
Indirect marketing with the use of
middlemen.
Bring buyers and sellers together.
 Make products or services available to
customers at convenient time.
 Producers cannot deal directly with
customers.
 Awareness creation
 More profitable sales.



Producers

can

concentrate

on

core

activity.


Bridging the gap between customers and
producers.



Reduce the number of transactions and

thus transaction costs.


Facilitate selling by being physically close to customers



Provide

distributional

efficiency

by

bridging

the

manufacturer with the user, efficiently & economically


Break the bulk & cater to the tiny requirements of buyers



Assemble products into assortments to meet buyers need;
match „segments of supply' with „segments of demand‟



Look

after

logistics

a

part

of

physical distribution/

marketing


Facilitation



Information



Promotion



Negotiation



Transfer of title and ownership



Holding the inventory and sharing risk.



Finance



Providing pre-sale and post-sale services.



Change agents



Warehousing and transportation



Market feedback and intelligence.


…create time, place, possession and
information utilities.
TIME

PLACE

POSSESSION
Information

3 21 57
1
9 24
7
Creating utilities for customers.
Nature of product
 Nature of customers
 Middlemen consideration
 Company consideration
 Market consideration
 Competitor‟s channel



Effective coverage of the target market



Efficient cost-effective distribution



Ensuring that consumers incur minimum exertion in

procuring the product


Helping

the

firm

to

carry

on

manufacturing

uninterrupted, confident that the channels will
take care of sales.


Partnering the firm in financing & sub-distribution
tasks.
 Link producers to buyers
 Convert potential buyers to profitable
customers
 Achieve targeted service output levels


Provide distribution efficiency



Provide salesmanship



Help in price mechanism



Look after a part of physical distribution &
financing



Assist in merchandising



Provide market intelligence



Act as change agents & generate demand



Take care of the flows involved in distribution


Provide pre-sale & after sale service



Assist in sales promotion



Assist in merchandising



Assist in introducing new products



Assist in implementing the price mechanism



Assist in developing sales forecast



Provide market intelligence & feedback
Manufacturer

Wholesaler

Retailer

Consumer
LEVELS OF CONSUMER
MARKETING CHANNELS
CHANNEL DESIGN DECISIONS
SERVICE OUTPUT LEVEL
CHANNEL MANAGEMENT
DECISIONS
0 LEVEL
HOW DOES IT WORK?
SERVICE OUTPUT
TRADE PROMOTION TOOLS
1 LEVEL
SERVICE OUTPUT
TRADE PROMOTION TOOLS
2 LEVEL
SERVICE OUTPUT
TRADE PROMOTION TOOLS

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Marketing channels