Marketing channels

Marketing channel and factor effecting marketing channels. ( education purpose)

1. Distribution Management: Factors
affecting selection of marketing channels

2. What Is a Marketing Channel?
A marketing channel system is the
particular set of interdependent
organizations involved in the process of
making a product or service available for
customers.

3. FUNCTIONS OF CHANNEL
INTERMEDIARIES
•Contact between producer and consumers
•Function of distribution
•Performing promotional activities
•Function of financing
•Gathering information
•Risk taking
•Provide for storage
In short, creating time, place and possession utility

4. Marketing Channel Levels
Zero-level channel (direct marketing channel)
One-level channel
Two-level channel
Three-level channel

5. Number of Channel Levels

6. Reverse-Flow Channels
Reverse-flow channels are important to:
(1)reuse products or containers (such as refillable
chemical-carrying drums);
(2)refurbish products for resale (such as circuit
boards or computers)
(3) to recycle products (such as paper)

7. Channel-Management Decisions
•Selecting channel members
•Training channel members
•Motivating channel members
•Evaluating channel members
•Modifying channel members

8. Factors affecting selection of
marketing channels
1)Product Considerations
2)Market Considerations
3)Company Considerations
4)Middlemen Considerations

9. Product Considerations
•Nature of Product
•Perishability
•Unit Value
•Standardised/ Customised product

10. Market Considerations
•Consumer or Industrial market
•Number of Customers
•Geographical Distribution

11. Company Considerations
•Financial Strength
•Past channel experience
•Reputation of company
•Product Mix

12. Middlemen Considerations
•Availability of middlemen
•Attitude of Middlemen
•Services Provided by middlemen
•Financial Ability