2. Marketing channels and distributionMarketing channels and distribution
Marketing channels are set of
interdependent organizations
involved in the process of making
the product or service available for
use or consumption.
They are the set of pathways a
product or service follow after
production.
3. Importance of channelsImportance of channels
Decisions about the marketing channels
are among the most critical management
decisions.
They just not serve markets, they make
market.
Channels chosen affects all other
marketing decisions.
Firm’s sale depends upon training and
motivation of dealers.
6. intermediariesintermediaries
Intermediaries are the middlemen
and signify those individuals in the
channels that either take title to take
goods and sell at profit.
They are directly involved in process
of flow of goods from manufacturer
to consumer.
7. Types of intermediariesTypes of intermediaries
1. Merchant middlemen
i. Wholesalers
ii. Retailers
2. Agents
i. Brokers
ii. Commission agents
iii. Selling agents
iv. Factors
v. Clearing agents
vi. auctioneer
8. wholesalerswholesalers
Functions of wholesalers:
1) Assembling and buying.
2) Warehousing.
3) Transporting.
4) Financing.
5) Risk bearing.
6) Grading, packing and packaging.
7) Dispersing and selling.
8) Providing market information.
9. Services of wholesalersServices of wholesalers
1.Service to manufacturers-
Economies of scale.
Saving in time and trouble.
Better use of capital.
Price stabilization.
2. Services to retailers-
i. Saving in cost and time.
ii. Economy in transport an packing.
iii. Better use of limited factors.
iv. Expert knowledge.
13. Services of retailerServices of retailer
To manufacturer and wholesaler
1. Offer opportunity.
2. A big relief.
3. Provision of information.
4. Reduce the risk of loss.
To the consumers
1. Largest choice.
2. Relief from storage.
3. Extra service.
4. Supply of information.
14. AgentAgent middlemenmiddlemen
Agent middlemen are those channel
components who help in the transfer of
goods from the hands of ultimate users
without acquiring the ownership of
these goods.
They operate for a commission.
16. Factors governing the choice ofFactors governing the choice of
channel of distributionchannel of distribution
FACTORS
Products
factors
Market
factors
Institutional
factors
Unit factors
Environmental factors
17. PRODUCT FACTORSPRODUCT FACTORS
1. Product nature.
2. Technical nature: simple or
complex.
3. The length of product line.
4. The market position: market
position of manufacturer.
18. The market forces-The market forces-
1. The existing market structure.
2. The nature of purchase
deliberations.
3. Availability channel.
4. competitior's channels.
20. Unit factorsUnit factors
1. The company’s financial position.
2. The extent of market control
desired.
3. The company reputation.
4. The company marketing policies.
21. Factors governing the choice ofFactors governing the choice of
intermediaryintermediary
1. Economic factors
2. The legal restrictions.
3. Fiscal policies.
4. The financial position.
5. The facilities available.