By this p.p.t I have explained about various distribution channel related issues for industrial product

1. Channel Decision For Industrial
Products
Channel Management includes the analysis
, planning, organizing and controlling of an
enterpriser’s channel of distribution. The
objectives to be served by a distribution strategy
will typically cover how, when and where the
enterprises market offering should be made
available. It also involves the choice of a level of
service by which an enterprise might seek to
secure competitive advantage. There are six
major decision areas in channel management

2. Major Decision Areas In Channel
Management
Decision Area 1- Formulating channel strategy
Decision Area 2- Designing the channel structure
Decision Area 3- Selecting the channel members
Decision Area 4- Motivating the channel
members.
Decision Area 5- Coordinating channel strategy
the marketing mix.

3. Channel Alternatives in Industrial
Marketing
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Manufacturer’s Representatives or agents
Value Added Resellers
Distributors and Dealers
Brokers
Commission Merchants
Direct Marketing (Telemarketing, Direct
Mail, Online Marketing )

4. Choosing the channel of distribution
There are different causes or factors that
influence the channel of distribution
• Geographic Characteristics
• Product Characteristics
• Distributor Characteristics
• Competitive Characteristics
• Company Characteristics

5. Geographic Characteristics
Distributors are generally required when the
customers are widely dispersed, there are a
large number of them and they buy frequently
in small amounts. A small manufacturer with
resources too united to hire a sizeable sales
force and with an equally limited market
acceptance, will have to consider an already
existing network to stock their products.

6. Product Characteristics
Direct distribution is required when bulky
products such as industrial chemicals , are
involved. Bulky products need channel
arrangements that minimize the shipping
distance and number of handlings. Products
requiring installation and maintenance are
generally sold through a limited network such as
sole agents i.e. HMT selling machine tools.

7. Distributor Characteristics
Distributors are more useful when their skills of
low cost contact service and storage are more
important than their lack of commitment to one
product or brand. For example some
manufacturers of hardware find this is true
where their brands have little effect on their
customer loyalty.

8. Competitive Characteristics
Every manufacturer have to deal with the market
competition. Market competition type is directly
related to choice of channel. Manufacturer chooses
their channel according to market competition. If
market competition is high ; the company will
choose maximum kinds of channel for reaching to
the customers while if it is low , the company will
more focus on improvement of quality and choose
only convenient channel for reaching to the
customers.

9. Company Characteristics
The size of the company often correlates with its
market share. The bigger its market share , the
easier it is to find distributors willing to handle
the product and vice-versa. If manufacturer has
ample financial resources , he may decide to
cover all marketing functions himself and to
delegate only a small proportion of the
functions of distributors.