Channels of distribution

1. CHANNELS OF DISTRIBUTION Vijayakumar A B

2. CONTENTS INTRODUCTION MEANING DEFINITION CHARACTERISTICS NEED AND IMPORTANCE TYPES Consumer Marketing Channels Industrial Marketing Channels Marketing Flow in Marketing Channels INTERMEDIARIES CHANNEL DESIGN DECISION CONCLUSION

3. INTRODUCTON The channel of distribution is the pathway taken by goods and services as they flow from the point of production to the point of consumption and includes a sequence of marketing agencies .

4. MEANING The word ‘channel’ has its origin to the French word used for ‘canal'. thus channel is a route through which the goods passes from one end to another.

5. DEFINITION According to William.j.Stanton,’A channel of distribution for a product is the route taken by the title to the goods as they move from the producer to the ultimate consumers or industrial users.’

6. CHARACTERISTICS OF CHANNEL OF DISTRIBUTION ROUTE OR PATHWAY FLOW COMPOSITION FUNCTION REMUNERATION

7. NEEDS AND IMPORTANCE Bridge between the producers and the final consumers or industrial users. Helps to move the goods from one place to another. Bring the goods to the final consumers or users. Help in the transfer of title to goods. Goods available to the consumers in convenient unit or size,package,etc.

8. TYPES OF CHANNELS OF DISTRIBUTION DIRECT SELLING INDIRECT SELLING

9. ACCORDING TO R.S.DAVAR, PRODUCER-TO ULTIMATE CONSUMER PRODUCER-RETAILER-ULTIMATE CONSUMER PRODUCER-WHOLESALER-RETAILER-ULTIMATE CONSUMER.

10. According to Philip kotler, PRODUCER-ULTIMATE CONSUMER PRODUCER-RETAILER-ULTIMATE CONSUMER PRODUCER-WHOLESALER-RETAILER-ULTIMATE CONSUMER PRODUCER-WHOLESALER-JOBBER-RETAILER-ULTIMATE CONSUMER

11. According to William .j.stanton PRODUCER-ULTIMATE CONSUMER PRODUCER-RETAILERS-ULTIMATE CONSUMERS PRODUCER-WHOLESALER-RETAILER-ULTIMATE CONSUMER PRODUCER-AGENT-RETAILER-ULTIMATE CONSUMER PRODUCER-AGENT-WHOLESALER-RETAILER-ULTIMATE CONSUMER

12. Wholesale shops

13. Retail shops

14. Consumer marketing channels

15. Industrial Marketing Channels

16. Marketing Flow in Marketing Channels Physical Flow Title Flow

17. Payment Flow Promotion Flow

18. INTERMEDIARIES OR MIDDLEMEN The channels of distribution includes manufacturers or producers, middlemen and the final consumers or users. but it refers primarily to the intermediaries or middlemen between the manufacturers or producers and the consumers or users.

19. MEANING Middlemen or intermediaries are the connecting links between the manufacturers or producers and the final consumers or users.

20. TYPES OF MIDDLEMEN AGENT MIDDLEMEN OF MERCANTILE AGENTS MERCHANT MIDDLEMEN

21. ROLE OR FUNCTIONS OF MIDDLEMEN TO PROVIDE THE CONNECTING LINK BETWEEN THE MANUFACTURERS AND THE FINAL CONSUMER. THEY ADD PLACE,TIME,AND POSSESSION UTILITIES TO GOODS. THEY REDUCES THE MARKETING ACTIVITIES TO AN OPTIMUM NUMBERS. THEY UNDERTAKE THE FUNCTIONS OF STORAGE AND TRANSPORTATION OF GOODS ON BEHALF OF THE PRODUCER-SELLERS AND THE BUYERS. THEY ASSUME MARKETING RISKS ALSO.

22. CONSIDERAQTION IN THE SELECTION OF INTERMEDIARIES OR FACTORS INFLUENCING THE CHOICE OF INTERMEDIARIES OR MIDDLEMEN THE TYPE AND EXTENT OF MARKET SERVED BY THE INTERMEDIARY. THE PRODUCT LINE IN WHICH THE INTERMEDIARY SPECIALISES. THE FINANCIAL POSITION OF THE INTERMEDIARY. THE MARKET REPUTATION ENJOYED BY THE INTERMEDIARY. THE SELLING POLICIES OF THE INTERMEDIARY COMPATIABLE WITH THOSE OF THE PRODUCER. THE CONTINUED RELATIONSHIP FOR A LONG TIME BETWEEN THE PRODUCER AND THE INTERMEDIARY. THE SALES ORGANISATION,i.e,THE UTILITY AND EFFICIENCY OF THE SALES FORCE OF THE INTERMEDIARY. OTHER FACILITIES,SUCH AS STORAGE FACILITIES,DELEVARY VANS,Etc.POSSESSED BY THE INTERMEDIARY.

23. CHANNEL DECISION OR CHANNEL DESIGN DECISION IT REFERS TO DECISION-MAKING IN REGARD TO TYPES OF DISTRIBUTION CHANNELS OR TRADE CHANNELS TO BE ADOPTED BY A CONCERN FOR THE MARKETING OF ITS PRODUCTS.

24. IMPORTANCE OF CHANNEL DECISION CHANNEL DECISIONS HAVE A GREAT IMPACT ON DECISION-MAKING IN ALL AREAS OF MARKETING. TO DETERMINE THE SIZE OF THE SALES FORCE,THE TYPE OF SALES FORCE,THE SIZE AND THE COMPLEXITY OF THE MARKETING DEPARTMENT AND THE COST OF MARKETING. IT INFLUENCE PRICING DECISION,ADVERTISING DECISION. A FIRM’S CHANNEL DECISIONS INVOLVE LONG-TERM COMMITMENT TO OTHER FIRMS.

25. FACTORS AFFECTING TRADE CHANNEL DECISIONS OR FACTORS AFFECTING CHANNELS OF DISTRIBUTION PRODUCT FACTORS OR CHARACTERISTICS. CUSTOMER CHARACTERISTICS. MIDDLEMEN CHARACTERISTICS. SUPPLY CHARASTERISTICS. DISTRIBUTION POLICIES OF THE PRODUCER OR MANUFACTURER. CHANNELS OF RIVALS. COMPANY CHARACTERISTICS. ECONOMIC CONDITIONS AND LAWS OF THE COUNTRY. COSTS OF THE MARKETING CHANNELS.

26. CONCLUSION Channels of distribution for a product begins with the producer and ends with the ultimate consumer. The importance of channels of distribution is clear from the role they play and the function they perform in the marketing of goods. And finally middlemen plays a important role in channels of distribution.