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Marketing Channels and Strategies Overview

This document discusses marketing channels and channel management. It covers topics like push and pull strategies, the functions of distribution channels in transferring information, payments, and physical distribution. It also discusses different types of marketing channels for consumers and industrial customers, as well as channel structure options like conventional channels versus vertical marketing systems. The document also addresses channel management decisions, causes of channel conflict, and legal/ethical issues in channel relations.

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16 views8 pages

Marketing Channels and Strategies Overview

This document discusses marketing channels and channel management. It covers topics like push and pull strategies, the functions of distribution channels in transferring information, payments, and physical distribution. It also discusses different types of marketing channels for consumers and industrial customers, as well as channel structure options like conventional channels versus vertical marketing systems. The document also addresses channel management decisions, causes of channel conflict, and legal/ethical issues in channel relations.

Uploaded by

ranjit_patidar5471
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd

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Marketing Channels

Sets of interdependent organizations involved in the process of making a product or service available for use or consumption.

RAJNISH JAIN, IMS, DAVV

Channels and Marketing Decisions

Push Strategy

Pull Strategy

RAJNISH JAIN, IMS, DAVV

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Should the 4 Ps be replaced?


Solutions Information Value Access

RAJNISH JAIN, IMS, DAVV

Objectives
Work Performed by Marketing Channels Channel-Design Decisions Channel-Management Decisions Channel Dynamics

RAJNISH JAIN, IMS, DAVV

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How a Distributor Reduces the Number of Channel Transactions

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1 2 3 4 5 6 7 8 9
= IMS, DAVV RAJNISH JAIN,Manufacturer = Customer 5 A. Number of contacts without a distributor MxC=3X3=9

How a Distributor Reduces the Number of Channel Transactions

1 4 Store 2 5

B. Number of contacts with a distributor MxC=3+3=6

= Manufacturer

RAJNISH JAIN, IMS, DAVV = Customer

6 = Distributor

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Distribution Channel Functions
Information Transfer Payments Physical Distribution Risk TakingRAJNISH JAIN, IMS, DAVV Communication Negotiation

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Ordering Financing
7

Consumer Marketing Channels

0-level channel Manufacturer 1-level channel Manufacturer 2-level channel Mfg Retailer Consumer

Consumer

Wholesaler

Retailer

Consumer

3-level channel Mfg Jobber Wholesaler RAJNISH JAIN, IMS, DAVVRetailer Consumer8

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Industrial Marketing Channels

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Manufacturer

Industrial distributors

Manufacturer s representative Manufacturer s RAJNISH sales branch JAIN, IMS, DAVV

Customers Desired Service Levels


Lot size Waiting time Spatial convenience Product variety Service backup

RAJNISH JAIN, IMS, DAVV

10

Consumer

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Channel Management Decisions

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Selecting Training Motivating Evaluating


FEEDBACK
11 12

RAJNISH JAIN, IMS, DAVV

Types of Vertical Marketing Systems


Corporate
Common Ownership at Different Levels of the Channel

Administered
Leadership is Assumed by One or a Few Dominant Members

Contractual
Contractual Agreement Among Channel Members
RAJNISH JAIN, IMS, DAVV

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Conventional Distribution Channel vs. Vertical Marketing Systems
Conventional marketing channel Manufacturer Vertical marketing channel Manufacturer Wholesaler Retailer
RAJNISH JAIN, IMS, DAVV

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Wholesaler

Retailer

Consumer Consumer
13

Causes of Channel Conflict


Incompatibility Difference in Perception Dependence

RAJNISH JAIN, IMS, DAVV

14

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Legal & Ethical Issues in Channel Relations
Exclusive Dealing Exclusive Territories Tying Agreements Dealers Rights

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RAJNISH JAIN, IMS, DAVV

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