sales and distribution 10

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Why Distribution Channel? : 

Why Distribution Channel? Facilitates searching process Facilitates process of exchange by making the products or services available for use Standardizing transactions which makes exchange more effective and efficient

Why Distribution Channel? : 

Why Distribution Channel? Adjust the discrepancy of assortment through the performance of sorting process Breaking Heterogeneous supply into separate stocks which are relatively homogenous called ‘sorting out’ Bringing similar stocks from a number of sources together into a larger homogenous supply called ‘accumulation’ Breaking a homogenous supply into smaller and smaller lots called ‘allocation’ Building up of assortment of products for resale in association with each other called ‘assortment’

Activities of Distribution Channel : 

Activities of Distribution Channel Discrepancies between typical production activity and consumption activity Spatial Discrepancy Temporal Discrepancy Need for breaking the bulk Need for assortment Information Discrepancy

Distribution Strategy : 

Distribution Strategy Setting distribution strategy Finalizing channel activity Organizing the channel activities Developing policy guidelines

Channel Flows : 

Channel Flows Physical possession flow Ownership flow Promotion flow Information flow Financing Flow

Ideal Channel Design : 

Ideal Channel Design Cost of performance Criticality of Performance Value addition

Channel Management Decisions : 

Channel Management Decisions Selection Training Motivation Coercive power Reward power Legitimate power Expert power Referent power

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