3. Marketing Channels
• Marketing channels may be defined as any
firms or individuals who participate in the
flow of goods and services as they move from
producer to an ultimate user.
• Its an organized network of interconnected
organization and agencies involved in
process of making a product or service
available to customer.
4. Importance or Functions of
Channels.
• Bring buyers and sellers together.
• Make services or products available to
consumers at convenient time.
• Producers can not deal directly with
consumers.
• More profitable sales.
• Awareness creation.
• Producers can concentrate on core activities.
5. Importance Continued
• Bridging gap between consumers and
producers.
• Reduce the number of transactions and
thereby transaction costs.
• Gather information about customers and
competitors.
• Develop and circulate persuasive
communication to encourage communication
6. Types of Marketing channels.
There are four basic types
of marketing channels:
• Direct selling.
• Selling through intermediaries;
• Dual distribution.
• Reverse channels.
7. Direct Selling
• The direct personal presentation,
demonstration, and sale of products and
services to consumers, usually in their homes or
at their jobs.
• Consumers benefit from direct selling because
of the convenience and service benefits it
provides, including personal demonstration and
explanation of products, home delivery, and
generous satisfaction guarantees.
8. • A marketing channel where intermediaries
such as wholesalers and retailers are utilized
to make a product available to the customer
is called an indirect channel.
• The most indirect channel you can use
(Producer/manufacturer --> agent -->
wholesaler --> retailer --> consumer) is used
when there are many small manufacturers
and many small retailers and an agent is
used to help coordinate a large supply of the
product.
Indirect Channel
9. Dual Distribution
• Dual distribution describes a wide
variety of marketing arrangements by
which the manufacturer or wholesalers
uses more than one channel
simultaneously to reach the end user.
• They may sell directly to the end users as
well as sell to other companies for resale.
Using two or more channels to attract the
same target market can sometimes lead
to channel conflict.
10. Reverse Channel
• All the previous channel formats flows from
producer to intermediary (if there is one) to
consumer.
• Technology, however, has made another flow
possible. This one goes in the reverse direction
and may go -- from consumer to intermediary to
beneficiary. Think of making money from the
resale of a product or recycling.
• There is another distinction between reverse
channels and the more traditional ones -- the
introduction of a beneficiary. In a reverse flow,
you find a producer. You'll only find a User or a
Beneficiary.
12. Advertisement and Promotion
• Advertisement:
Advertising is a form of communication for
marketing and used to encourage persuade or
manipulate an audience (viewers, readers, or
listeners: sometimes specific group) to continue
or sometimes to take some new option.
• Promotional Activity:
Advertisement means spreading of
information. The main purpose of every
commercial organization is to promote sales.
Any activity towards sales promotion may be
called as promotional activity and
advertisement is a kind of promotional activity.
14. Advertising Target:
The Advertising target is the
audiences, towards whom the
ad targeted.
Sometimes this target
encompasses the entire target
market.
In other case it includes
only a subset of the
target market
15. Advertising Objectives
The basic objective of advertisement is
effective communication between producers
and consumers. Some following objectives
are:
•Preparing ground for new product.
•Creation of demand.
•Facing the competition.
•Creating and enhancing goodwill.
•Informing the changes to the customers.
•Neutralizing the competitor’s
advertisement.
16. Advertising Budget:
• It’s a component of the total budget must
be allocated among markets , brands and
media.
• Under this system , brands in the
introductory stage would receive more
funds than those in the maturity stage.
17. Advertising Strategy :
Selects an
appeal
formulate
s the ad
concept
Develops
the ad
elements
Provides
technical
direction and
production
18. Advertising Media :
• In advertising , mass communication channels are called
advertising media like newspaper , magazines , radio , TV etc.
• The major type of advertising media are print , broadcast ,
direct , location.
Advertising Effectiveness:
• Good planning and control od advertising depend on measures
of advertising effectiveness.
• Advertiser should try to measure the communication effect of
an ad that is its potential effect on awareness , knowledge or
preferences as well as the ad sells effect.
• Communication effect research ,seek to determine whether an
ad is communicating effectively .
19. Promotion:
• It includes activities that seek to directly
induced or indirectly serve as incentives
to motivate a desire response on the part
of target customer.
• Sales promotion activities also add value
to the product.
20. Sales Promotion Methods:
A company must select the tools develop the program, pretest
the program, implement and control it, and evaluate the result.
• Major consumer promotion tools are:
• Samples
• Coupons
• Cash refund offers/cash back offer
• Price packs
• Prizes( contest, games)
• Free trials
• Product warranties etc
22. SALESMANSHIP
• Salesmanship is an art of selling goods and
services of the seller to buyer.
• It is seller – initiated effort that provide
prospective buyer with information and
motivates or persuades them to make
favourable buying descisions concerning the
• seller’s products or service.
23. FEATURES OF SALESMANSHIP
Educative process
Mutual benefit
Service for producer, distributor and consumer
Consumer satisfaction
Buyer’s confidence
Art of converting desire into necessity
Art of attracting and persuading customer
Personal service
Salesmanship is an art
25. Scope of salesmanship
• Transport
• Repairing
• Teaching
• Painting
• Banking
• Legal
• Medicine
• Insurance etc
26. • Salemanship in its higher level
includes the subject – matter of
• Product knowledge
• Knowledge of customer
• Training and control of salesman
• Organization and management of sales
department etc
27. ADVANTAGES OF
SALESMANSHIP
• Salesmanship helps in preventing the piling up of huge
stocks.
• Salesmanship help in creating demand for the goods
which
• Leads to increase in production.
• Salesmanship is the best means of two – way
communication
• Between the company and customer.
• Increase in sales helps to increase the profits.
• Increase sales induced business activity which
provides more
• Employment and higher income for the community.
• Consumers are benefitted as salesman provide them
great deal of useful information.
28. Limitations of salesmanship
• High cost of personal selling
• Salesmanship adopts the methods of
pressure selling
• Good and competent sales person are
scarce