MARKETING MANAGEMENT
CHANNEL DECISION
GUIDANCE BYPROF. VILASINI JADHAV25/01/2012 copyright 2006 www.brainybetty.com; All Rights Reserved. 2
NAMES SHAMPA ADHIKARI SANA MAKANDAR YASH MALHOTRA HEENA PARWEEN
ROLL NO.
50403 50427 50429 504413
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MEANING OF MARKETING CHANNEL Marketing / distribution channel is the route taken by the goods on their journey from the producer to the ultimate consumer. Marketing channels are also called TRADE CHANNELS or DISTRIBUTIVE CHANNELS . Every marketing channel starts with the producers and ends with the consumer. Consumers purchase goods through such channels and producers Reach the consumers through marketing channels.25/01/2012 copyright 2006 www.brainybetty.com; All Rights Reserved. 4
FUNCTIONS AND SERVICES OF MARKETING CHANNELS Facilitate movement of goods Ready to supply to consumers Promote large-scale distribution of goods Facilitate economical distribution Create utilities Risk taking Facilitate introduction of new products Perform miscellaneous marketing functions
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MARKETING CHANNELS FOR CONSUMER GOODS
MANUFACTURER
WHOLESALER
RETAILER
CONSUMER
HIS OWN DEPOTS
RETAILER
MANUFACTURER
CONSUMER CHANNEL
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MANUFACTURER
RETAILER
CONSUMER CHANNEL
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WHOLESALER
SOLE SELLING AGENT
RETAILER
MANUFACTURER
CONSUMER CHANNELcopyright 2006 www.brainybetty.com; All Rights Reserved. 9
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MANUFACTURER
HIS CHAIN SHOPS
CONSUMER CHANNEL
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MANUFACTURER
CONSUMER CHANNEL
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MEANING OF CHANNEL DECISIONA new firm normally starts by selling in a limited market segment. The manufacturers may sell directly to the retailers where the size of the market is small. In larger markets it might sell through distributors.
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FOLLOWING AREAS OF CHANNEL DECISION To analyse consumer needs. To determine channel objectives. To identify alternatives. To evaluate alternatives.
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INTENSITY OF DISTRIBUTIONIntensive distribution Selective distribution Exclusive distribution
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INTENSIVE DISTRIBUTION When the distribution of goods is effected through a large number of middlemen it is called intensive distribution. For example products suitable for intensive distribution would include soaps, detergents, tea, soft drinks, toothpastes, pens, chewing gum, bread, medicines etc. Large concerns like HUL, Amul, Cadbury, Godrej, ITC, and Nirma use intensive distribution.
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SELECTIVE DISTRIBUTION When the distribution is undertaken thorough a highly selected groups of outlets it is called selective distribution. For example durable goods like refrigerators, air conditioners, music system, PCs for home and personal care goods, TV, washing machine, mixer grinder etc.
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EXCLUSIVE DISTRIBUTION When distribution is effected through a single dealer or distribution within a particular market segment, it is called exclusive distribution. For example Designer products, high- priced pens and wrist watches, branded jewellery, expensive cars, fashion garments, exclusive perfumes, costly cameras etc.
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CHANNEL CONFLICTS Channels and distribution are managed by independent businessmen. They are motivated by personal goals and self-gain. Often they tend to develop major differences which eventually takes the shape of conflicts. Thus, when one channel members actions prevent another channel from achieving its goal, channel conflict occurs.
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TYPES OF CONFLICTS Vertical Channel Conflict. Horizontal Channel Conflict. Multi Channel Conflict.
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CAUSES OF CONFLICTS Goal Incompatibility. Ambiguous Roles and Rights. Differences in Perception. Too much Dependence on Manufacturer.25/01/2012 copyright 2006 www.brainybetty.com; All Rights Reserved. 20
ACKNOWLEDGEMENTAs a group we would like to acknowledge ICLES M.J college for Giving us this opportunity to represent this presentation. We would like to thanks and acknowledge our professor VILASINI JADHAV , who helped us in guiding for this presentation.25/01/2012 copyright 2006 www.brainybetty.com; All Rights Reserved. 21
THANK YOU25/01/2012 copyright 2006 www.brainybetty.com; All Rights Reserved. 22
