Transcript Marketing Channels

Marketing Channels
Chapter 1
Marketing Channels Structure and Functions
Marketing Channels Definition
Marketing Channels are the routes or ways
to market product and services that
consumers and business buyers purchase.
Marketing channels can also be set of
interdependent organizations involved in the
process of making a product or service
available for the use of consumption.
Why do marketing channels exists
and change
 Demand-Side factors
 Uncertainty of customer
 Uncertainty of producer
 Adjustment of Assortment Discrepancy
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Sorting
Accumulation
Allocation
Assorting
Why do marketing channels exists
and change
 Supply-Side Factors
 Routinization Of Transaction
 CRP (Continues Replenish System)
 Reduction in number of Contacts
 Cost effectiveness
 Easy Handling
 Value Addition
Reduction in Contacts
What is the Work of Marketing
Channels
 Flow of Marketing Channels
 Producers
 Distributors
 Whole Seller
 Retailer
 Consumer
Marketing Channels Flow
A Framework For Channel Analysis
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Channels Segmentation
Structure Decisions
Splitting the Work Load
Degree of Commitment
Gap Analysis
Identifying Power Sources
Channels Conflict
Goal of Channel coordination
Insights for Specific Institutions
Service Output Demand Differences
Framework of Channel Design and
Implementation
 Channel Design Process
 Segmentation
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Recognize
Respond
Target customer
Service Output demand
Decision about efficient Channel Response
Framework of Channel Design and
Implementation
 Channel Design Process
 Channel Structure
 What kind of intermediaries are in my
channel ?
 Who are they ?
 How many of them ?
 Splitting the work load
 Define responsibilities
 Area of specialization
Framework of Channel Design and
Implementation
 Channel Design Process
 Degree of Commitment
 Distribution Alliance
 Vertical Integration/Ownership
 Gap Analysis
 What do I have to change ?
Framework of Channel Design and
Implementation
 Channel Implementation Process
 Channel Power
 Identify Sources
 Channel Conflict
 Identify actual and potential source
 Manage/Defuse Conflict
 Use Power Source
 Goal
 Channel Coordination
Framework of Channel Design and
Implementation
Channel Design
Channel Implementation
Insights for Specific Channel Institutions
Retailing, Wholesaling and logistics, Franchising