Marketing channel design

marketing channel and channel design

1. channel

2. SMERA JAINA PRESENTED BY… &

3. A marketing channel is a set of practices or activities necessary to transfer the ownership of goods, and to move goods, from the point of production to the point of consumption. MARKETING CHANNEL

4. CAN SELL THERE PRODUCT DIRECTLY TO CUSTOMERS

5. CAN’T SELL THERE PRODUCT DIRECTLY TO CUSTOMERS

6. TYPES OF MARKETING CHANNEL Direct marketing channel Indirect marketing channel

7. It refers to those decisions involving the development of new marketing channels where none had existed before, or to modification of existing channels. CHANNEL DESIGN

8. CHANNEL DESIGN DECISIONS Customer wants and needs Objectives and constraints Identifyng and evaluate alternatives

9. MEMBERS IN MARKETING CHANNEL MERCHANTS (Wholesalers and retailers)buy, take, title to and resell merchandise AGENTS Agents( brockers,manufacturer,reprasentatives,sales agents)search for customers and may negotiate on the producers behalf, but do not take title to goods FACILITATORS Facilitators(shippers, independent warehouses, banks, ad agencies) assistin distribution , but do not take title to goods nor do the negotiate purchases or sales.

10. STEPS OF DESIGNING A CHANNEL ANALYSIS OF CUSTOMERS DESIRED SERVICE OUTPUT LEVELS ESTABLISHING CHANNEL OBJECTIVES IDENTIFYING MAJOR CHANNEL ALTERNATIVES EVALUATING THE MAJOR ALTERNATIVES

11. 1. ANALYSIS OF CUSTOMERS DESIRED SERVICE OUTPUT LEVELS Analyzing customer needs Waiting time Product variety Service backup

12. 2. ESTABLISHING CHANNEL OBJECTIVES Each channel alternatives provide a different level of sales, costs. Eg : internet , telemarketing, retail stores, distributors.

13. 3. IDENTIFYING MAJOR CHANNEL ALTERNATIVES Company Sales Force Dealer Value Added Resellers Merchants Carrying and Forwarding Agents Intensive Distribution

14. 4. IDENTIFYING MAJOR CHANNEL ALTERNATIVES Wholesaler Retailer Distributor Middlemen Agent or Broker

15. 5. EVALUATING THE MAJOR ALTERNATIVES Once the list of alternative channels is selected, the marketing manager should evaluate each channel alternative to arrive at a final decision .

16. FACTORS AFFECTING CHANNEL CHOICE 1. MARKET FACTOR Customer Preferences Organizational Customers Geography Competitors

17. 2. PRODUCT FACTOR Life Cycle Product Complexity Product Value Product Size and Weight Consumer Perception

18. 3. MANUFACTURER FACTOR Company Objective Company Resources Desire for Control Breadth of Product Life

19. Thank you