marketing channels & distribution-prince dudhatra

8/4/2019 Marketing Channels & Distribution-prince Dudhatra

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MARKETING CHANNELS &DISTRIBUTION


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Objective

What is a marketing channel systemand value network?

What work do marketing channelsperform?

How should channels be designed?

What decisions do companies face inmanaging their channels?

How should companies integratechannels and manage channel

conflict?


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Marketing Channel

Sets of interdependent organizationsinvolved in the process of making a

product or service available for use

or consumption.


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Channels andMarketing Decisions

PushStrategy

PullStrategy


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HYBRID CHANNELS

Branch

Network

m-Banking

ATMNetworkInternetBank

Callcentre

Multi-channel deliverymodel

Agent

Network


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VALUE NETWORKS

Its all about relationships

Upstream

Downstream


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Categories of Buyers

Habitual shoppers

High value deal seekers

Variety-loving shoppers

High-involvement shoppers


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815-8

4 Ps is replaced by SIVA

Solutions

Information

Value Access


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Increasing Efficiency


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Marketing Channel Flows


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Consumer Marketing Channels


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IndustrialMarketing Channels


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Designing a Marketing ChannelSystem

1515-15

Analyze customer needs

Evaluate major channel alternatives

Identify major channel alternatives

Establish channel objectives


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Channel Service Outputs

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Lot size

Waiting/delivery time

Spatial convenience

Product variety

Service backup


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Identifying ChannelAlternatives

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Types ofintermediaries

Number ofintermediaries

Terms andresponsibilities


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Number of Intermediaries

1815-18

ExclusiveDistribution

SelectiveDistribution

IntensiveDistribution


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Channel-ManagementDecisions

1915-19

Selecting channelmembers

Training channel

membersMotivating channel

members

Evaluating channelmembers

Modifying channelmembers


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Channel Power

Coercive

Reward

Legitimate

Expert

Referent

2015-20


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Channel Integration& Systems

ChannelIntegration& Systems

VerticalMarketingsystems

HorizontalMarketingsystems

MultichannelMarketingsystems

Vert ca ar et ng anne


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Vert ca ar et ng anneIntegration

Manufacturer

Consumer

Wholesaler

Retailer

Conventional

Marketing ChannelA channel consisting ofone or moreindependent producers,wholesalers, andretailers, each aseparate businessseeking to maximize itsown profits even at theexpense of profits forthe system as a whole


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VMS is one in which the main members of adistribution channelproducer, wholesaler,and retailerwork together as a unifiedgroup in order to meet consumer needs.

VerticalMarketing System

Manufacturer

Consumer

Retailer

Wholesaler


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A corporate

VMS

Vertical MarketingSystem TypesVertical

MarketingSystem

A contractual

VMS

An administered

VMS

Wholesaler-SponsoredVoluntary

Chains

Franchises RetailCooperatives

Manufacturesponsoredretailfranchisesystem

Manufacturesponsoredwholesalefranchisesystem

Servicesponsoredretailfranchisesystem

Servicesponsoredfranchisesystem


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Channel Systems(Examples)

Corporate: 1 channel member owns

other channel members

Contractual:channel membersoperate under contractual

agreements ( franchises)Administered:channel members operatebased on agreed upon plans(Channel Captains)


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Horizontal marketingsystems

A channel arrangement in which two or more companies atone level join together to follow a new marketingopportunity

Multichannel distribution system in which a single firm setsup two or more marketing channels to reach one or morecustomer segments.

hybrid marketingchannel


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The HybridGrid


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Conflict, Cooperation, AndCompetition

What types of conflict arise in channels?

What causes channel conflict?

What can marketers do to resolve conflict situations?


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Types of conflict andcompetition

o Vertical channel conflict.

o Horizontal Channel conflict.

o Multichannel conflict.


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Causes of channel conflict

o Goal incompatibility.

o Unclear roles and rights.

o Differences in perception.

o

Intermediaries dependence on the


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Managing channel conflict

o Adoption of Superordinate goals.

o Exchange of employee.

o Joint membership.

o

Co-optation.


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Dilution and cannibalization

o Marketer must also be careful not todilute their brand throughinappropriate channels.

For example Asian Sky Shop andShubhiksha

Cannibalization:- It means to take

parts from machines or vehicle in


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E-commerce


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Types of E-commerce

Pure Click Companies

Brick - and - Click Companies

M - Commerce


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WOMENS WEAR

k


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Womenswear MarketScenario

Indian womenswear market is goingthrough a phase of renovation.

Total value of womenswear market isestimated to be around Rs. 37,000crore during 2007.

It further indicates a positive growth

rate of 14% a year, for the next five

k


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Womenswear MarketScenario (cont.) Many manufacturers who were

initially concentrating only on men'swear have started to focus more on

the formal wears for women. Theirmain targets are working women inthe age group, 22-40

Demand for women wear grew dueto increased number of working

woman who had financial


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Women's Wear

Suits and coats

T-shirts

Jumpers Tops

Jackets

Skirts

Jeans

Sarees

BRANDS OF WOMENS


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BRANDS OF WOMENSWEAR

Raymond Park Avenue Woman

Provogue

Esprit Mango

Indian Terrain

Van Heusen Allen Solly

Blackberry

Levi's


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VAN HEUSEN

launched womens wear (in end-2006)

Product was formal wear

Premium pricing

Target people were working ladies


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Top Indian Designers

Manish Malhotra

Ritu Beri

Anita Dongre

Neeta Lulla


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BIBLIOGRAPHY

Marketing management - Philip Kotler 13th edition

www.vernaallee.com

www.fachak.com

www.indianchild.com

THANK YOU


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THANK YOU

marketing channels & distribution-prince dudhatra

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