18. marketing_channels

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PowerPoint Presentation:

MARKETING CHANNELS

PowerPoint Presentation:

Prof. Sunitha Ratnakaram, Associate Professor, VVSB MBA, M. Phil, MFM, M. SC. (Psychology), UGC – JRF , (Ph. D)

DEFINITION:

DEFINITION A marketing channel is a set of interdependent individuals and organizations involved in the process of making a product or service available to the End-User for use or consumption

Evolution of Marketing channels:

Evolution of Marketing channels It takes place in distinct business phases like, Production era Sales era Marketing era Relationship marketing era.

Production Era:

Production Era This era is between 19 th to early 20 th centuries. This era mainly concentrates on producing large quantities with the help of technical advancement in every field. In this era sales person is treated as a friendly person who plays a prominent role in customer satisfaction. In this era there is a tight control on the people who involved in selling.

Sales Era:

Sales Era This era faced problems because of “Economic Recession”. In this era they realized selling is more important than creating Goodwill. According to this era sales person should have sound knowledge and skills to sell the product

Marketing Era:

Marketing Era Due to second world war lot of changes had taken place in this era. Steel industry is facing competition from Plastic industry etc. Businesses also had to wary of market changes. This gave rise to the “Marketing Concept” Sales person as a “Problem solver”

Relationship Marketing Era:

Relationship Marketing Era This era takes place because of intense competition in the market. This era mainly concentrates on delighting the customer and retaining customers. It’s a complex selling process.

PowerPoint Presentation:

Manfacturers Intermediaries End-Users Channel Members Producing the product Distributing the product Receving or Buying the product

Roles of Channel Members:

Roles of Channel Members Facilitate the search process of buyers and Sellers. Sorting Making transactions routine Contractual Efficiency.

Channel Functions:

Channel Functions Facilitating the strategic aim of channel members. Fulfilling the Interaction Process. Market coverage and Product availability. Market Development.

PowerPoint Presentation:

Technical Support. Market Information. Inventory Management. Risk Taking.

Designing Marketing Channels:

Designing Marketing Channels IT includes several dimensions like: Channel Length Channel Breadth. Cost involved in selecting a particular channel.

Channel Decisions:

Channel Decisions Channel structure. Channel Intensity. Type of Intermediaries used at each level.

Channel Structure:

Channel Structure

Channel Intensity:

Channel Intensity Intensive Distribution. Exclusive Distribution. Selective Distribution.

PowerPoint Presentation:

Intensive distribution : channel policy in which a manufacturer of a convenience product attempts to saturate the market Selective distribution : channel policy in which a firm chooses only a limited number of retailers to handle its product line Exclusive distribution : channel policy in which a firm grants exclusive rights to a single wholesaler or retailer to sell its products in a particular geographic area

Type of Intermediaries used at each level. :

Type of Intermediaries used at each level. Manufacturer's Representatives. Manufacturer's Sales force. Industrial Distributors.

Channel Flows and Costs:

Channel Flows and Costs Possession. Ownership Promotion. Negotiation. Financing. Risking. Ordering. Payment.

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