PREPARED BY : DHARVEN PANCHAL

Consumer Orientation is the focus on meeting the needs of one's customers, internal or external. At lower levels the service involves courteous and timely responsiveness to the requests of customers, while at the higher levels, it involves developing the relationship of partner and trusted advisor.

The place element of the marketing mix. Distribution makes products available in adequate quantities, in convenient locations, and at times when customers The management of all activities which facilitates movement and co-ordination of supply and demand in the creation of time and place utility in goods.

Possession utility

Place utility

Time Utility

Form

Channel Intermediaries Channel strategy Channel management Physical distribution considerations Ethical considerations

Breaking bulk Reduce number of transactions and create bulk for transport Accessibility to markets Provide specialist support service

Channel selection Market factors (buyer behavior) geographical concentration of customers Producer factors (available resources) product mix offered Product factors (product size) bulky or difficult to handle? Competitive factors (competitors control over traditional) distribution channels

Distribution Intensity Intensive distribution use of all available markets (e.g. cigarettes) Selective distribution use of a limited number of outlets in a geographical area (e.g. computers) Exclusive distribution only one intermediary is used in a geographic area (e.g. cars sold by only one dealer in each town

Channel Integration Conventional marketing channels independence of channel members, little or no control (e.g. pricing, brand image) Franchise operation legal contract in which producer and channel intermediaries agree each a members rights and obligations Channel ownership by purchasing retail outlets, producers control their purchasing, production and marketing activities

CHANNEL MANAGEMENT
Identification of candidates(trade sources, reseller enquiries Development of selection criteria
{ knowledge (market, product, customer); market coverage; quality and size of sales force}

Selection

Motivate channel members to

Motivation

(act as distributors; Allocate adequate commitment and ;resources to producers lines) Possible motivators( financial rewards; Territorial exclusivity Development of strong work relationship

Training

A need to train channel members depends on their internal Competences. Can take on two forms:
(product knowledge/ Company knowledge)

Identification of (shortfalls in distributor skills and Competencies; lack of

Evaluation

distributors motivation) Important for (retention, training and motivation decisions) Criteria include (sales volume and value; Profitability, Level of stocks, Quality and position of display)

Managing Conflict

Sources of channel conflict(differences in goals; Differences in desired product line) Avoiding and resolving conflict(training in conflict handling;Developing a partnership approach, Channel ownership, coercion)

Customer service Order processing Inventory Control Warehousing Transportation & Materials handlingH

Slotting allowance: power shift from manufacturer to retailers, retailers charge rent for shelf space
Grey markets: product is sold through an unauthorized distribution channel, undercutting of prices Exclusive dealing: manufacturer prohibits distributors that markets its products from selling the products of competing suppliers Restrictions in supply: small suppliers are concerned that the power of large manufacturers and retailers will mean they are squeezed out of the supply chain

THANK YOU