PowerPoint Presentation On Marketing Channels

PPT On Marketing Channels

Download

Presentation Transcript:

1. Marketing Channels

2. Learning Objectives
Understand channel structure and how channels manage discrepancies
Understand concept of channel flows
Relationship of channel flows to service levels
Understand channel formats and levels
Understand what channel systems are expected to deliver
Prominent marketing and channel systems

3. Channel Functions
Information gathering
Consumer motivation
Bargaining with suppliers
Placing orders
Financing
Inventory management
Risk bearing
After sales support

4. Direct Distribution
Company to consumers or retailers without use of intermediaries. Also includes reaching Institutional buyers.
Selling on the Internet
If products are technically complex, this system is preferred
Cost is a major consideration to adopt this mode

5. Direct Distribution - Examples
Banking services
Credit cards
Petrol / diesel – company own outlets
Land line phone connections
Health services
Utilities – electricity, water
Subsidized ration
Education

6. Indirect Distribution
Goods may move through a set of intermediaries
Most FMCG companies follow this route
The intermediary has a far better reach than the company
The cost of operations of an intermediary like a wholesaler / retailer is shared with many businesses.

7. Indirect Distribution - Examples
All FMCG, consumer durables and pharmaceutical
Petrol / diesel / cooking gas - franchisees
Insurance
Mobile phones
All kinds of passenger transport

8. Marketing Channel Systems
Vertical:
Corporate
Administered
Contractual
Horizontal
Multi-channel

9. Vertical Marketing System
Various parties like producers, wholesalers and retailers act as a unified system to avoid conflicts
Improves operating efficiency and marketing effectiveness
3 types:
Corporate
Administered
Contractual

10. For more info please refer our PPT
Thanks.