marketing channel and channel design

2. SMERAJAINA
PRESENTED BY…
&

3. A marketing channel is 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 CHANNEL

4. CAN SELL THERE PRODUCT DIRECTLY TO
CUSTOMERS

5. CAN’T SELL THERE PRODUCT DIRECTLY TO CUSTOMERS

6. TYPES OF MARKETING CHANNEL
Direct marketing channel
Indirect marketing channel

9. It refers to those decisions involving the development of
new marketing channels where none had existed before, or
to modification of existing channels.
CHANNEL DESIGN

10. CHANNEL DESIGN DECISIONS
 Customer wants and needs
 Objectives and constraints
 Identifyng and evaluate alternatives

11. MEMBERS IN MARKETING CHANNEL
MERCHANTS
(Wholesalers and
retailers)buy, take,
title to and resell
merchandise
AGENTS
Agents(brockers,manufacturer,re
prasentatives,sales agents)search
for customers and may negotiate
on the producers behalf, but do
not take title to goods
FACILITATORS
Facilitators(shippers, independent warehouses,
banks, ad agencies) assistin distribution , but do
not take title to goods nor do the negotiate
purchases or sales.

12. STEPS OF DESIGNING A CHANNEL
ANALYSIS OF CUSTOMERS DESIRED SERVICE
OUTPUT LEVELS
ESTABLISHING CHANNEL OBJECTIVES
IDENTIFYING MAJOR CHANNELALTERNATIVES
EVALUATING THE MAJOR ALTERNATIVES

13. 1.ANALYSIS OF CUSTOMERS DESIRED
SERVICE OUTPUT LEVELS
 Analyzing customer needs
 Waiting time
 Product variety
 Service backup

14. 2.ESTABLISHING CHANNEL OBJECTIVES
Each channel alternatives provide a different level of
sales, costs.
Eg: internet, telemarketing, retail stores, distributors.

15. 3.IDENTIFYING MAJOR CHANNEL ALTERNATIVES
Company Sales Force
Dealer
Value Added Resellers
Merchants
Carrying and Forwarding Agents
Intensive Distribution

16. 4.IDENTIFYING MAJOR CHANNEL
ALTERNATIVES
 Wholesaler
 Retailer
 Distributor
 Middlemen
 Agent or Broker

17. 5.EVALUATING THE MAJOR ALTERNATIVES
Once the list of alternative channels is
selected, the marketing manager should
evaluate each channel alternative to arrive at
a final decision.

18. FACTORS AFFECTING CHANNEL CHOICE
1. MARKET FACTOR
 Customer Preferences
 Organizational Customers
 Geography
 Competitors

19. 2. PRODUCT FACTOR
 Life Cycle
 Product Complexity
 Product Value
 Product Size and Weight
 Consumer Perception

20. 3. MANUFACTURER FACTOR
 Company Objective
 Company Resources
 Desire for Control
 Breadth of Product Life

21. Thank you