1. S E G M E N T A T I O N & D I S T R I B U T I O N
W R I S T WA T C H
MARKETING CHANNELS

2. GROUP MEMBERS:
MBPE-F14-001 Mafia Noor
MBPE-F14-007 Hamid Raza
MBPE-F14-024 Soban Sheikh
MBPE-F14-028 Aizaz Shafiq
MBPE-F14-040 Rizwan Ayub
MBPE-F14-044 Umair Maqbool

3. WRIST WATCH MARKET SEGMENTATION
1. Only 20% of the Pakistanies own Wrist watch
2. 70% of the vast population fall in mass market segment.
3. Market Split into following Categories:
Low end market, Mass Market, Mid Market, Premium Brand
70%
20%
7%3%
Segmentation
Mass Market
Low End Market
Mid Market
Premium Brand

4. Physical
Possession
Ownership
Promotion
Negotiation
Financing
Risking
Ordering
Payment
Physical
Possession
Ownership
Promotion
Negotiation
Financing
Risking
Ordering
Payment
Physical
Possession
Ownership
Promotion
Negotiation
Financing
Risking
Ordering
Payment
MARKETING FLOWS IN CHANNELS
Producers Official
Distributors
Retailers
Consumers
Industrial
and
Household
Commercial Channel Subsystem
The arrows above show flows of activity in the channel
(e.g. physical possession flows from producers to wholesalers to retailers to consumers).

5. EXPECTED PROBLEMS IN DISTRIBUTION
CHANNEL
1. Product Quality
2. Customer Service
3. No proper Information
4. Less Waiting Time
5. No Travelling

6. SOD’S TO IMPROVE CHANNEL
EXPERIENCE
1. Bulk Breaking
2. Customer Service
3. Information Provision
4. Waiting Time Service
5. Product Variety
6. Spatial Convince

7. SOD’S TO IMPROVE CHANNEL
EXPERIENCE: TABLE
Channel
Members
Bulk
Breaking
Information
Provision
Customer
Service
Waiting
Time
Service
Spatial
Convince
Product
Variety
Consumer H H H H H H
Retailer H L L L L H
Wholesaler L L L L L L

8. CHANNEL ANALYSIS
• Channel members produce service outputs
• Channel flows are the activities that produce service
outputs
• Need to know:
• What flows are being performed
• By which channel members
• At what levels
• Enables channel manager to:
• Diagnose and remedy shortcomings
• Design a new channel or revise an existing channel
• Minimize costs
• Allocate profits equitably
• Avoid channel conflict

9. CHANNEL FLOWS
• The Eight Generic Channel Flows
1. Physical possession
2. Ownership
3. Promotion
4. Negotiation
5. Financing
6. Risking
7. Ordering
8. Payment
• Can remove channel members but not channel flows
• Redundant flows

10. EFFICIENCY TEMPLATE
• For analyzing existing channel or designing new channel
• Includes:
• Importance of each channel flow
• Involvement of each channel member with each channel flow
• Fair allocation of profits among channel members

11. THE EFFICIENCY TEMPLATE
WEIGHTS FOR FLOWS: PROPORTIONAL FLOW PERFORMANCE OF
CHANNEL MEMBER:
COSTS
*
BENEFIT
POTENTIAL
(High,
Medium, or
Low)*
FINAL
WEIGHT*
1 2 3 4
(end-user)
TOTAL
PHYSICAL
POSSESSION*
*
100
OWNERSHIP 100
PROMOTION 100
NEGOTIATION 100
FINANCING 100
RISKING 100
ORDERING 100
PAYMENT 100
TOTAL 100 N/A 100 N/A N/A N/A N/A N/A
NORMATIVE
PROFIT
SHARE***
N/A N/A N/A 100
* Entries in column must add up to 100 points.
** Entries across row (sum of proportional flow performance of channel members 1 through 4) for each channel member must add up
to 100 points.
*** Normative profit share of channel member i is calculated as: (final weight, physical possession)*(channel member i's proportional
flow performance of physical possession) + … + (final weight, payment)*(channel member i's proportional flow performance of
payment). Entries across row (sum of normative profit shares for channel members 1 through 4) must add up to 100 points.

12. TABLE 3. APP3A-1
COMPANY EFFICIENCY TEMPLATE FOR CHANNEL SERVING END-
USERS THROUGH RETAILERS: (UNDISGUISED DATA)
WEIGHTS FOR FLOWS: PROPORTIONAL FLOW PERFORMANCE OF
CHANNEL MEMBER:
COSTS BENEFIT
POTENTIAL
(High, Medium,
or Low)
FINAL
WEIGHT
Mfgr. Retailer End-user
(Contractors)
TOTAL
PHYSICAL
POSSESSION
30 High 35 30 30 40 100
OWNERSHIP 12 Medium 15 30 40 30 100
PROMOTION 10 Low 8 20 80 0 100
NEGOTIATION 5 Low/Medium 4 20 60 20 100
FINANCING 25 Medium 29 30 30 40 100
RISKING 5 Low 2 30 50 20 100
ORDERING 6 Low 3 20 60 20 100
PAYMENT 7 Low 4 20 60 20 100
TOTAL 100 N/A 100 N/A N/A N/A N/A
NORMATIVE
PROFIT
SHARE
N/A N/A N/A 28% 39% 33%* 100

13. REFERENCES
www.slide share.net
www.scribd.com
www.google.com/wristwatch
www.facebook.com/mba professional sec(A)

14. Thank you