marketing channel presentation - unitedworld school of business

7/28/2019 Marketing Channel Presentation - Unitedworld School of Business

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MARKETING CHANNEL

A set of independent organisations involved in theprocess of making a product or service available foruse or consumption by the consumer or businessuser.


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FUNCTION OF MARKETING CHANNEL

Carrying of inventory

Demand generation

Physical Distribution

After sale service Extending credit to customer


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CHANNEL FUNCTIONS & FLOW

Physical Flow

Title Flow

Payment Flow Promotion Flow

Information Flow


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CHANNEL LEVELS


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CHANNEL INTEGRATION SYSTEM


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CHANNELCONFLICT


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Channel conflict is generated when

channel members actions prevent

another channel from achieving itsgoals.


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TYPESOFCHANNELCONFLICT

Vertical Channel Conflict.

Horizontal Channel Conflict.MultiChannel Conflict.


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VERTICAL CHANNELCONFLICT

Conflict between different levels with

in the same channel.

e.g.- HUL came into conflict with itsdistributers in Kerala on the issue of

commission.


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HORIZONTALCHANNELCONFLICT

Conflict between members at the same

level with in the channel.

e.g.- Conflict between two same retail

outlets.


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MULTI-CHANNEL CONFLICT

Conflict exists when the manufacturer

has established two or more channels

that sale same product.

e.g.- Reebok has its own store and

other licensed store who also sale

Reebok products.


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STRATEGIESTOMANAGE

CHANNELCONFLICT

Adoption of super ordinate goals.

Exchange of employees.

Joint membership in trade association.

Co-optation.

Diplomacy, mediation, or arbitration.

Legal recourse.


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DISTRIBUTION CHANNEL

The process or channel or flow which makes

the product or service available for use by the

customer can be regarded as a distributionchannel.


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DISTRIBUTION FUNCTION

To meet the satisfaction level of the consumer by

delivery of products to different types of customers

when and where they required at a reasonable costcan be considered as one of the major function of

distribution.


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TYPICAL CHANNELS OF DISTRIBUTION


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DISTRIBUTION FUNCTIONS

Bridge the gap between production and consumption. Responsible for promoting, awareness regarding the

produce.

Creating contacts and maintaining liaison with existing

one. Understanding customer need and adjusting the offer

accordingly.

Price negotiation as per the customer demand of the

product.


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WHY INTERMEDIARIES?

Contacts

Experience

Socialisation

Scale of operation Purpose Match supply from producers to demand from

consumers.


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STEPS IN DISTRIBUTION PLANNING

Develop Distribution Objective

Evaluate Internal and External Environmental influences

Choose a Distribution Strategy Conventional, Vertical, or Horizontal system

Intensive, exclusive or selective distribution

No. Of channel levels

Develop Distribution TacticsSelecting channel members

Managing the channel

Physical distribution planning

Order processing

Warehousing

Transportation

Inventory Control


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MARKETING INTERMEDIARIES MIDDLEMANindependent link between producers and consumers

MERCHANT MIDDLEMANactually buys goods and takes title/ownership

AGENTbusiness unit that negotiates purchases and sales but does not take

ownership

WHOLESALERa merchant who primarily stores and handles goods in large

quantities RETAILERmerchant middleman who sells to final consumers

BROKERmiddleman who serves as a go-between for the buyer and seller

MANUFACTURERS AGENTan agent who operates by contract serving a

geographic territory

DISTRIBUTOR wholesale middleman in lines with selective or exclusive

distribution

JOBBERa middleman who buys from manufacturers and sells to retailers

FACILITATING AGENTa firm that performs distribution tasks other than

buying, selling and transferring


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CHANNEL EFFICIENCY:

HOW INTERMEDIARIES REDUCE THE NUMBER

OF CHANNEL TRANSACTIONS


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CHANNELS OF DISTRIBUTIONOF CONSUMER GOODS


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TYPES OF DISTRIBUTION STRATEGIES

1. Exclusive distribution

2. Selective distribution3. Intensive distribution


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2. SELECTIVE DISTRIBUTIONTYPEOFPRODUCTDISTRIBUTIONTHATLIESBETWEENINTENSIVE

DISTRIBUTIONANDEXCLUSIVEDISTRIBUTION, ANDINWHICHONLYAFEWRETAILOUTLETSCOVERASPECIFICGEOGRAPHICAL

AREA. CONSIDEREDMORESUITABLEFORHIGH-ENDITEMSSUCH

AS 'DESIGNER' ORPRESTIGEGOODS.

Use of more intermediaries compared to exclusive

Need more visibility

More control

Less cost

**SHAHNAZ HUSSAIN HERBAL PRODUCTS

Not available in every Grocery Shop

Available at selected outlets

Maintain image


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3. INTENSIVE DISTRIBUTIONA MARKETINGSTRATEGYUNDERWHICHACOMPANYSELLSTHROUGH

ASMANYOUTLETSASPOSSIBLE, SOTHATTHECONSUMERSENCOUNTER

THEPRODUCTVIRTUALLYEVERYWHERETHEYGO: SUPERMARKETS,

DRUGSTORES, GASSTATIONS, ANDTHELIKE.

As many outlets as possible

Multiple channels

Consumers widespread

Problems of control

**LUX SOAPS, LIFEBUOY, COLGATE, SOFT DRINKS


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CHANNEL MANAGEMENT


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CHANNEL MANAGEMENT

Channel Management involves the strategy, development and

alignment of channels, or customer interfaces, across your

marketing, sales and service processes. Channels typically

include the Internet, call centers, retail stores, phones and text

messaging.


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FUNCTIONSOFINTERMEDIARIESINDISTRIBUTION

CHANNELMANAGEMENT?

The functions of intermediaries are :

1. Availability.

2. Information.

3. Communication.

4. Negotiation.

5. Order.

6. Payment collection.

7. Financing.8. Risk taking.

9. Title transfer.

S C M


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SUCCESS CHANNELMANAGEMENT

Outline


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Vertical Integration:

Owning the Channel

Selection Criteria

Channel Structure and

Membership Issues

Channel

Implementation

BuildingChannels


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Managing Conflict to

Increase Channel

Coordination

Channel Power:Getting It, Using It,

Keeping It

Bargaining for

Influence with Channel

Members

Key Account

Management in

Collaborative

Relationship Building

Partner Relationship

Management

Managing

Channels


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Selection and

Termination

Policies

Making the Plan

Work Effectively

Performance

Measurement

Implementation


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MANAGEMENT TECHNIQUES37


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Value and Resource ScarcityValue and Market

Information

Cooperation

Information: The

Core of Transaction

Costs

Transaction-Specific Assets

Specific Human Assets

Brand Capital

Time Specificity

Preparing a Marketing Plan

for Channels

Factors in Deriving

Economic Value


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Marketing Channels

Creating Customer

Value via Channels of

Distribution

Components of

Customer Value

form,

place,

possession, andtime

Marketing

Channels: Structureand Functions

Demand-Side Factors

Facilitation of Search,Adjustment of

Assortment

Discrepancy,

Routinisation of

Transactions

Reduction in Number

of Contacts.

What Is The Work Of

The Marketing

Channel?

Marketing Channel

Membership

Customer

Relationship

Management

Three types of

channelrelationships exist:

Supplier

Relationships.

Customer

Relationships.

Lateral

Relationships.

Sifting the

cycle

Marketing

Channels


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Channel Design

and

Implementation Channel Design:

Segmentation

Channel Selection

Channels Type

Options:

Establish New

Channels or Refine

Existing Channels?

Channel

Access

Formats


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Distributor and Agent

Selection Criteria Recruiting and

Screening New

Prospects

Recruiting as a

Continuous Process.

Screening

Credit

Personality

Business and Operational

Criteria

Final Selection

Criteria

Channel Candidate

Inducements

Business Policies that

Bond Your Channel to

You

Preparing a

Business Policy

Statement

Distributor and

Agent Selection

Criteria


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Managing Conflict to

Increase Channel

Coordination

Forms of Channel

Conflict Assessing the Degree

and Nature of Channel

Conflict

Measuring Conflict

When Conflict Is

Desirable

When Is Conflict

Functional?

Major Sources of

Conflict

Competing Goals

Differing Perceptions ofReality

Clashes Over Domains

Multiple Channels

Fuelling Conflict

Conflict Resolution

Strategies

Co-optation

Third-Party Mechanisms

Building Relational

Norms

Information Exchange

Styles of Conflict

Resolution

Accommodation

Repeated Compromise

Competition

Collaboration

Managing

Conflict to

Increase

Channel

Coordination


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Legal Constraints on

Marketing Channel

Policies

Market Coverage

Policies

Pricing PoliciesDiscounts

Product Policies

Exclusive Dealing

Product Line Policies

PromotionalAllowances and

Services

Legal Issues


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Channels for

ServicesDirect Delivery of

Value

Delivery of Value via

Intermediaries

Independent

Service Channels

Innovations in Methods of

Distributing Services

Channels for Services


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IBM Marketing channel

Management Clips.


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CAMPUS OVERVIEW

907/A Uvarshad,

Gandhinagar

Highway, Ahmedabad

382422.

Ahmedabad Kolkata

Infinity Benchmark, 10th

Floor, Plot G1,

Block EP & GP,

Sector V, Salt-Lake,

Kolkata 700091.

Mumbai

Goldline Business Centre

Linkway Estate,

Next to Chincholi Fire

Brigade, Malad (West),

Mumbai 400 064.


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marketing channel presentation - unitedworld school of business

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