distribution channel sahil kandhari

8/6/2019 Distribution Channel Sahil Kandhari

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APRESENTATION ON

DISTRIBUTION CHANNELS

SUBMITTED BY-SAHIL KANDHARI

28-MBA-09

-S U B M ITTE D TO. . .P R O F M R R A N A


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DISTRIBUTION CHANNELDEFINED

A set of interdependentorganizations (intermediaries)

involved in the process ofmaking a product or service

available for use orconsumption

A channel of distribution

comprises a set of institutionswhich perform all of theactivities utilised to move a

product and its title from


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Role of Intermediaries

Greater efficiency in makinggoods available to targetmarkets.

Intermediaries provide Contacts

Experience

Specialization Scale of operation

Match supply and demand


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Channel Functions

Information

Promotion

Contact Matching

Negotiation

Physical Distribution

Financing

Risk taking


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Distribution Channel

Functions

Contact: finding andcommunicating with prospective

buyers

Matching: shaping and fitting the

offer to the buyers needs,including such activities asmanufacturing, grading,assembling, and packaging


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Functions

Negotiation: agreeing on price andother terms of the offer so that

ownership or possession can betransferred

Physical distribution: transportingand storing goods


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Functions

Financing: acquiring and using fundsto cover the costs of channel work

Risk taking: assuming financial riskssuch as the inability to sellinventory at full margin


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Functions

Information: gathering anddistributing marketing research

and intelligence informationabout the marketing environment

Promotion: developing andspreading persuasivecommunications about an offer


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Negotiation

Promotion

Contact

Transporting and storing

Financing

Packaging

Money

Goods

Today s system of exchange


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Channel Levels orintermediaries

Wholesaler

Agent

Retailer

Internet


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Channel intermediaries -Wholesalers

Break down bulk

buys from producers and sell smallquantities to retailers

Provides storage facilities reduces contact cost between producer

and consumer

Wholesaler takes some of the marketingresponsibility e.g sales force, promotions


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Channel intermediaries -Agents

Mainly used in international markets

Commission agent - does not taketitle of the goods. Secures orders.

Stockist agent - hold consignmentstock

Control is difficult due to culturaldifferences

Training, motivation, etc areexpensive


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Channel intermediaries -Retailer

Much stronger personal relationshipwith the consumer

Hold a variety of products

Offer consumers credit

Promote and merchandise products

Price the final product Build retailer brand in the high

street


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Channel intermediaries -Internet

Sell to a geographically disperse market

Able to target and focus on specificsegments

Relatively low set-up costs Use of e-commerce technology (for

payment, shopping software, etc)

Paradigm shift in commerce andconsumption


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Customer MarketingChannelsu sto m e r M a rke tin gC h a n n e ls


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Six basic channel decisions

Direct or indirect channels

Single or multiple channels

Length of channel Types of intermediaries

Number of intermediaries at each

level Which intermediaries? Avoid

intrachannel conflict


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Selection consideration

Market segment - must know thespecific segment and target customer

Changes during plc - different channels

are exploited at various stages of plc Producer-distributor fit - their policies,strategies and image

Qualification assessment - experience

and track record must be established Distributor training and support


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Channel Design DecisionsChannel Design DecisionsAnalyzingConsumerServiceNeedsAnalyzingConsumerServiceNeeds

SettingChannelObjectives&ConstraintsSettingChannelObjectives&Constraints

ExclusiveDistributi

on

ExclusiveDistributi

on

SelectiveDistributi

on

SelectiveDistributi

on

IntensiveDistributi

on

IntensiveDistributi

on

IdentifyingMajorAlternativesIdentifyingMajorAlternatives

EvaluatingtheMajorAlternativesEvaluatingtheMajorAlternatives


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Decisions

SelectingSelecting

MotivatingMotivating

EvaluatingEvaluating

FEEDB

AC

K


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PRESENTATION EXTRACT

We were able to comprehend thenature of distribution channels, andwhy marketing intermediaries are

used Understand the different marketing

intermediaries available to theindustry and the benefits each ofthese intermediaries offers

Know how to use the Internet as adistribution channel

Know channel selection and design


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THANKS A LOT

distribution channel sahil kandhari

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