Slide 2:
Type of marketing channel
1.Intensive distribution - Intensive distribution – use of all available markets (e.g. cigaretts) Where the majority of resellers stock the 'product' (with convenience products, for example, and particularly the brand leaders in consumer goods markets) price competition may be evident.
2. Selective distribution -use of a limited number of outlets in a geographical area (e.g. computers) This is the normal pattern (in both consumer and industrial markets) where 'suitable' resellers stock the product.
3. Exclusive distribution -only one intermediary is used in a geographic area (e.g. cars sold by only one dealer in each town).Only specially selected resellers or authorized dealers (typically only one per geographical area) are allowed to sell the 'product'.
Slide 3:
The channel design process consists of the following steps:
1. Establish objectives.
2. Formulate a strategy.
3. Determine structure alternatives.
4. Evaluate structure alternatives.
5. Select structure.
6. Determine alternatives for channel .
8. Measure and evaluate channel performance.
Slide 4:
Channel selection is done on the basis of
Market factors - buyer behavior,geographical concentration of customers
Producer factors - available resources
Product factors - product size , bulky or difficult to handle?
Competitive factors - competitor’s control over traditional distribution channels
Slide 5:
Selection
identification of sources
- trade sources
- reseller enquiries
Development of selection criteria
- knowledge (market, product,customer)
- market coverage
- quality and size of sales force
Slide 6:
Motivation
Motivate channel members to
- Allocate adequate commitment and
resources to producer’s lines
Possible motivators
- financial rewards
- Territorial exclusivity
- Development of strong work
Relataionship
Slide 7:
THAK YOU