Marketing Channels

1
Marketing Channels

• Chapter 1
• Marketing Channels Structure and Functions

2
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.

3
Why do marketing channels exists and change

• Demand-Side factors
• Uncertainty of customer
• Uncertainty of producer
• Adjustment of Assortment Discrepancy
• Sorting
• Accumulation
• Allocation
• Assorting

4
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

5
Reduction in Contacts
6
What is the Work of Marketing Channels

• Flow of Marketing Channels
• Producers
• Distributors
• Whole Seller
• Retailer
• Consumer

7
Marketing Channels Flow
8
A Framework For Channel Analysis

• 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

9
Service Output Demand Differences
10
Framework of Channel Design and Implementation

• Channel Design Process
• Segmentation
• Recognize
• Respond
• Target customer
• Service Output demand
• Decision about efficient Channel Response

11
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

12
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 ?

13
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

14
Framework of Channel Design and Implementation

• Channel Design Channel Implementation
• Insights for Specific Channel Institutions
• Retailing, Wholesaling and logistics,
  Franchising