Marketing Channels and Types.pptx

Definition, functions and objectives of marketing channels. Channel strategies and policies. Channel design and channel management decisions. selecting the channel partners. training the channel members. Motivating channel members. Evaluating the channel members. Formulating channel objectives. Channel design. terms and responsibilities of channel members. Types of intermediaries. Identifying major channel alternatives. Functions of marketing channels. Consumer behaviour and marketing channels.

1. Marketing Channels and Types

2. Consumer and Business Channels

3. Place = Distribution Importance : it is going to effect every other marketing decision. Channels chosen will have a long term commitment. Distribution channels vary vastly for consumer goods and producers goods. For consumer goods the distribution channels are longer and indirect. For producer goods, channels are direct and shorter.

4. Channel Design Decisions Analyze the consumer’s service output level Establish objectives and constraints Identifying major channel alternatives Evaluating major alternatives

5. 1. Analyze the customer service output level Lot size Waiting and delivery time Spatial convenience Product variety Service backup

6. 2. Establishing objectives and constraints Minimize the cost Desired level of services Types of the product : Perishable Bulky Products requiring installation & maintenance High value

7. 3. Identifying major channel alternatives Types of intermediaries Merchants Facilitators No. of intermediaries Exclusive Selective Intensive Terms and responsibilities Price policy Conditions of sale Distributor’s right Mutual services and responsibilities

8. No. of intermediaries Exclusive Selective Intensive Suitability Shopping goods, speciality goods, products requiring installation Speciality goods, spares, accessories convenience No. of middlemen One Few Many Advantages to consumer Assured quality, personalized service. Exclusiveness of brand Prestigious products Convenience of purchase, wide availability, easy access Examples Cars, designer garments, jewellery and watches Tv, Auto parts, computers, mobiles Soap, toothpaste, washing powder, stationery, grocery

9. 4. Evaluating major alternatives Decide which alternative would be the best to satisfy long term objectives each alternative is rated against 3 criteria Economic Control Adaptive

10. Economic criteria Comparing the sales, cost and profitability of the channel alternative What is the investment required? What results are expected? What will be the cost of selling different volume?

11. Control criteria The level of control demanded by the intermediaries For example A sales agency may pose a control problem They might not master the technical skills required to handle the company’s prodcut effectively

12. Why does marketer need the intermediaries

13. Channel management decisions

14. Selecting Channel Members : After deciding on to the channel design, the company now goes to select member.