alternative final of hrm

8/6/2019 Alternative Final of hrm

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AlternativeAlternativechannelschannels

:y

hool Chand


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Channel:Channel:

Physical distribution channel is the termused to describe the method and means

by which a product or a group of productsare physically transferred, or distributed,from their point of production to the point

at which they are made available to thefinal customer.


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Alternative:Alternative: 5km 5 km

20km8km 7km 8 km

3km

5km 5km

8km

AB

F

C

D

E


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Evaluating alternatives:Evaluating alternatives:

Economic criteria

Control criteria

Adaptive criteria


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Economic criteria:Economic criteria:

Firms tries to align customer andchannels to maximise demand atthe lowest overall cost.


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Rs .10 Rs.20

Rs.10Rs.8 Rs.5

Rs.6 Rs. 10 Rs.10

Rs.10

C

BA

F

E

D


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Control Criteria :Firm tend to achieve proper control

over the channel.

Adaptive Criteria :In rapidly changing , volatile or

uncertain product markets, theproducer needs channel structures

and policies that provide highadaptability.


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Chain of Distribution Channels:Chain of Distribution Channels:


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Alternative Channel SystemsAlternative Channel Systemsfor Consumer Productsfor Consumer Products


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Manufacturer Direct To RetailManufacturer Direct To RetailStore.Store.

The manufacturer or supplierdelivers direct from theproduction point to the retailstore. As a general rule, thischannel is only used when fullvehicle loads are being delivered .


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Advantages :Advantages :Loyalty, pride in company/product

Control brand image, positioningDisadvantage :

Limited coverage Cannot call on large

customer base


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Distribution CentreDistribution Centre t t o Retailo RetailStoreStore ..

Manufacturers supplying theirproducts to National DistributionCenters (NDCs), which are sitesrun by the retail organizations.

The retailers then deliver fullvehicle loads of all the differentmanufacturers products to their

own stores. Most retailers now usethird parties to run these finaldelivery operations.


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Advantage :Advantage :

Focused customer baseAssume financial and inventory

risk

Disadvantage :

Carry competitive products, lessloyalUnmanageable; have own agenda


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Manufacturer Manufacturer t t o Wholesaler o Wholesaler t t o Retail Shop.o Retail Shop.

Wholesalers acted as theintermediaries in distribution

chains, providing the link betweenthe manufacturer and the smallretailers' shops.

Ex. Grocery items.


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Advantage :Advantage :

Good relationships withcustomers

Minimal distribution costs.

Disadvantage :Expensive commissions

If they leave, you lose thecustomer


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Mail order Mail order ..Goods are ordered by

catalogue, and deliveredto the home by post orparcels carrier. Thephysical distribution

channel is thus frommanufacturer to mailorder house as aconventional trucking

operation, and then tothe consumer's home bypost or parcels carrier,bypassing the retailstore.


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Advantage:Advantage:

Relatively inexpensiveCan reach a large customer in

lesser time .

Disadvantage:Postage costs risingCatalog shopping is fun

d h fI d h i f


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Internet and shopping fromInternet and shopping fromhome.home.

Initial physical distribution

channels were similar to thoseused by mail order operations- by post and parcels carrier.

The move to internet shopping

for grocery products has led tothe introduction of specialisthome delivery distributionoperations. These are almostall run by third-partycompanies. In addition, it isnow possible to distributesome products, such as music,software and films, directly,computer to computer.


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Advantage:Advantage:

Instantly global if desired, wideexposure

Open 24/7/365, access growing

wireless

Disadvantage:Limited audience (not everyone

has it or will use it for shopping)Lack of one-to-one interaction,

impersonal


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Factory direct to home.Factory direct to home.

It can occur by direct sellingmethods, often as a result of newspaper advertising. It is alsocommonly used for one-off products that are specially madeand do not need to be stocked in awarehouse to provide a particularlevel of service to the customer.


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Some other specificSome other specificchannels:channels:

Manufacturer via broker to retailshop.

Manufacturer via small parcels

carrier to retail shop. Manufacturer via third-party

distribution service to retail

shop.Manufacturer to cash-and-carry wholesaler to retail shop

l h lAl i Ch l S


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Alternative Channel SystemsAlternative Channel Systemsfor Industrial Productsfor Industrial Products

F f /b iF t t f t /b i t


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Factory to factory/business toFactory to factory/business tobusiness.business.

The factory-to-factory orbusiness-to-business channel is anextremely important one, as itincludes all of the movement of industrial products, of which thereare very many. This may coverraw materials, components, part-assembled products, etc. Options

vary according to the type andsize of product and order, mayrange from full loads to smallparcels, and may be undertakenby the manufacturers themselvesor by a third party.


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Reference:Reference:

Marketing management-kotler, keller,

koshy, jha

www.google.com

www.wikipedia.com

www.ask.com
http://www.google.com/http://www.wikipedia.com/http://www.ask.com/http://www.ask.com/http://www.wikipedia.com/http://www.google.com/


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