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Channels Of Distribution
:-reasented by Param KumarDasBA 2nd Semester
:-oll No 77
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A channel ofdistributioncomprises a set ofinstitutions which
perform all of theactivitiesutilised to move a product and itstitle
from production to
consumption
Channels of distributionChannels of distribution
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Marketing Channel Strategy isGrowing in Importance.
Why?
1)Search for sustainable competitive
advantage2)Growing power of retailers in
marketing channels
3)The need to reduce distribution costs4)The increased role and
power of
technology
5)The new stress on growth
ive R e a so n sive R e a so n s
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Functions
Contact
Contact
Financing
Financing
Information
InformationRiskTaking
RiskTaking
Promotion
Promotion
Matching
MatchingNegotiation
Negotiation
PhysicalDistribution
PhysicalDistribution
All Use Up Scarce Resources
All May Often Be Performed Better Through Specialization
All Can Often Be Shifted Among Channel Members
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Five Marketing Flows in marketing channel
.Physical FlowSuppliers Customer
ransporterWarehouses Manufacturer
TransportesWarehouses Dealers Transporters
.Title FlowCustomeruppliers Manufacturer Dealers
Customeruppliers.Payment Flow
Banks Manufacturer Banks Dealers Banks
.Information FlowCustomerSuppliers Transporter
arehousesBanksManufacture
rTransporter
arehousesBanks
Dealers
TransporterBanks
.Promotion Flow
CustomerdvertisingAgencyuppliers ManufacturerdvertisingAgency
Dealers
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Consumer Marketing Channel
Manufactu
rer
-ro level
Consumer
Number of Levels
-ne levelRetailer
Wholesaler-wo level Retailer
-ree level RetailerWholesaler Agent
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Industrial Marketing Channel
Manufactu
rer
-ro level
Industrial
Customer
Number of Levels
-ne level IndustrialDistributor
-wo level ManufacturersRepresentative
Industrial
Distributor
-ree level Manufacturersrepresentative
Installer
Industrial
Distributor
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CHANNEL- DESIGN DECISIONS*CHANNEL- DESIGN DECISIONS*
AnalyzingConsumerServiceNeedsAnalyzingConsumerServiceNeeds
SettingChannelObjectives&ConstraintsSettingChannelObjectives&Constraints
IdentifyingMajorChannelAlternativesIdentifyingMajorChannelAlternatives
SelectingtheBestAlternativeSelectingtheBestAlternative
ResponsibilitiesofChannelMembersResponsibilitiesofChannelMembers
EvaluatingtheMajorAlternativesEvaluatingtheMajorAlternatives
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Decisions
SelectingSelecting
MotivatingMotivating
EvaluatingEvaluating
FEEDB
AC
K
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hank You
