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A presentation on 3rd P of marketing i.e place.
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MARKETING CHANNELS
Bhushan Baragade
Meghana Bhogle
Ninad Gaikwad
Ajay Ghangare
Kaizeen Ghaswalla
TEAM MEMBERS
Process of making a product or service “available” for use or consumption by a consumer
PLACE
A set of practices or activities necessary to transfer the
ownership of goods and to move goods,
from the point of production to the point of consumption
MARKETING CHANNELS
•Link producers to buyers•Convert potential buyers to profitable customers
•Achieve targeted service output levels
IMPORTANCE
Means used to transfer a product from manufacturer to the end user
•Wholesaler•Retailer•Jobber
INTERMEDIARIES
0 Level
1 Level
2 Level
3 Level
LEVEL OF CONSUMER MARKETING CHANNELS
•Analyzing Customers' desired service output levels•Establishing the channel objectives & constraints•Identifying the major channel alternatives•Evaluating the major channel alternatives
CHANNEL DESIGN DECISIONS
• Lot size• Waiting and Delivery time• Spatial convenience• Product variety• Service back-ups
SERVICE OUTPUT LEVEL
•Selecting channel members•Motivating channel members•Evaluating channel members•Modifying channel arrangements
CHANNEL MANAGEMENT DECISIONS
Specialty advertising
Coupons
Samples
Bonus packs
Rebates
Contests
TRADE PROMOTION TOOLS
0 LEVEL
Manufacturer Consumer
World’s largest direct seller of beauty products like skincare, make-up, fragrances, personal care,fashion jewellery
58 lakh representatives in over 100 countries
Global turnover- Rs.45000crores
HOW DOES IT WORK?
Customer approaches sales representative and places order
Sales representative places weekly orders with the company
Products are delivered to the sales representative who in turn distributes it to the customer
• Lot size• Waiting and Delivery time• Spatial convenience• Product variety• Service back-ups
SERVICE OUTPUT
TRADE PROMOTION TOOLS
•Sales rep sells the product at brochure price•Sales rep earns discounts depending upon targets
achieved•Sales rep can be promoted to ‘Leader’ after achieving
certain targets•Leader earns commission
1 LEVEL
Manufacturer Retailer Consumer
A multi-branded discount store with exclusive tie-ups with various brands
Currently operates in 150 retail outlets in Mumbai, Hyderabad, Vizag, etc
Opening stores in Delhi, Surat and Nashik
• Lot size• Waiting and Delivery time• Spatial convenience• Product variety• Service back-ups
SERVICE OUTPUT
TRADE PROMOTION TOOLS
2 LEVEL
Manufacturer Wholesaler Retailer Consumer
A multi-branded gift shop availing gift articles, accessories, gadgets and toiletries
Currently based in Bandra
SERVICE OUTPUT
PORTER’S 5 FORCES
TRADE PROMOTION TOOLS
•Cash discounts•Trade discounts
•Schemes •Offers
•Other promotional tools
THANK YOU
