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Channels of distribution


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Channels of distribution

  1. 1. Presentation <br />on<br />Channel design and channel Conflict<br />Presented by:-<br />Manju verma<br />M.B.A. (2nd semester)<br /><br />
  2. 2. Contents :-<br />Meaning of Channel Distribution.<br />Channel Functions<br />Channels of distribution for consumer products and industrial products.<br />Channel designing process.<br />Factors influencing the channel selection.<br />Intensity of market coverage.<br />Channel Management.<br />
  3. 3. Meaning:-<br />“Marketing channels are the combination of agencies through which the seller, who is often, though not necessarily the manufacturer, markets his product to the ultimate User.”<br />John A. Howard<br />
  4. 4. Channel Functions<br />These functions should be assigned to the channel members who can add most value for the cost<br />Information<br />Negotiation<br />Physical<br />Distribution<br />Promotion<br />Contact<br />Financing<br />Matching<br />Risk Taking<br />
  5. 5. Channels of<br />distribution<br />
  6. 6. Zero level channel<br />Manufacturer<br />Customer<br />CHANNEL<br />ONE - LEVEL<br />Manufacturer<br />Retailer<br />Customer<br />
  7. 7. T<br />W<br />O<br /> L<br />E<br />V<br />E<br />L<br />C<br />H<br />A<br />N<br />N<br />E<br />L<br />T<br />H<br />R<br />E<br />E<br />L<br />E<br />V<br />E<br />L<br />C<br />H<br />A<br />N<br />N<br />E<br />L<br />Manufacturer<br />Manufacturer<br />Wholesaler<br />Wholesaler<br />Agent<br />Retailer<br />Retailer<br />Customer<br />Customer<br />
  8. 8. Channels of distribution for consumer and industrial products<br />
  9. 9. Channel Behavior<br />
  10. 10. Factors influencing the channel selection<br />Product or Market characteristics factors<br />Company characteristic factors<br />Middleman consideration.<br />Environmental characteristics factors.<br />Number of customers<br />Cost of the product<br />Degree of channel control desired<br />Type of the product<br />Financial Resources<br />Services provided by the middleman<br />Ability of Management<br />Availability of desired middleman<br />Attitude of middleman towards manufacturer’s Policy<br />
  11. 11. Intensity of Market coverage<br />Intensive Selective Exclusive<br />Distribution through every reasonable outlet in a market<br />Distribution through multiple, but not all, reasonable outlet in the market<br />Distribution through single wholesaling middlemen in a market<br />
  12. 12. Specialty<br />Goods<br />Exclusive<br />Distribution<br />Selective <br />Distribution<br />Type of product<br />Shopping Goods<br />Intensive<br />Distribution<br />Convenience <br />Goods<br />Intensity of<br />Distribution<br />Little or no Effort<br />Some <br />Effort<br />Much<br />Effort<br />Level of shopping effort<br /><ul><li>The Relationship between types of product, level of shopping effort, and intensity of distribution</li></li></ul><li>Vertical Marketing System<br />"A marketing channels in which manufacturing and the successive stages of distribution are operated as a unified system.”<br />
  13. 13. Horizontal Marketing System<br />Horizontal Conflict occurs among firms at the same level of the channel (e.g., retailer to retailer).<br />
  14. 14. Channel Management<br />Recruiting<br />Training<br />Motivating<br /><ul><li>Decision areas for channel Management</li></ul>Evaluating and Replacing Channel Members<br />Servicing<br />Compensating<br />
  15. 15. Thank you<br />