Marketing Channels

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Marketing Channels

• Session-8

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Just Have a Look
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Why Channel
Producer
Consumer
Advertisements, commissions, Bonuses, Channel
Discounts etc. account for distribution channel
costs, which is passed on to consumers.
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Channel Development
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Role of Marketing Channels

• Producers Lack Financial Resources and Expertise
  to deal with Consumers.
• Direct Marketing would not be possible
• More prudent to focus on ones core business
  rather than distribution.

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Consumer and Industrial Channel
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Case Discussion- Distribution of Telecom Services
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Channel Design Decisions

• Analyzing Customer Needs
• Lot size,
• service level output,
• product variety.
• Establishing Channel Objectives and Constraints.
• Objectives may vary with conditions.
• Different products require different distribution
  channels.

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Channel Design Decision.

• Identifying Major Channel Alternatives.
• Type of Intermediaries
• Number of Intermediaries.
• Exclusive distribution.
• Selective distribution
• Intensive distribution
• Terms and Responsibilities of Channel Members
• Price policy, sales conditions, territorial
  rights, Service Responsibilities
• Evaluating Alternatives
• Economic Criteria,
• Control

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Channel Management

• Selecting Channel Members
• Experience.
• Growth.
• Profitability.
• Management.
• Resources
• Operation Area

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Channel Management

• Training and Motivation
• Skill Development.
• Commission
• Bonuses
• Shared Advertisement Expenses.
• Negative Sanctions
• Penalty.
• Termination
• Evaluating Channels
• Evaluate against performance standards,
• Modifying Distribution Channel
• eTicketing etc.

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Channel Conflict

• Types of Conflict
• Vertical channel conflict
• Horizontal channel conflict
• Multichannel conflict
• Causes of Channel Conflict
• Goal incompatibility
• Unclear roles and rights
• Differences in perception

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Reducing Inefficiencies of Distribution Channel

• How do you think we can reduce the distribution
  channel leakage?
• Technological Intervention?
• Educating the Consumers?
• Direct Marketing?
• Any other Innovation?

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Excersice

• Nepali Masuara and Gundruk in Kathmandu.
• Solar Power Table Lamps.
• Non Stick Kitchenware.
• Fresh Farm Milk.

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GRACIAS