(Distribution)

Definition:-
MARKETING CHANNELS
These are the set of independent organisations involved
in the process of making a product or services available
for use and consumption.
 Gather information potential and current customers,
competitors, etc.
Promote the offer.
Contact with the consumer and give service.
match the offer.
Negotiates with the buyers about the price and the
offer.
Distribute the product.
Finance the manufacturer.
Take risk.
Physical flow
Suppliers-transporters-manufacturers-transporters-
dealers- transporters-customers

Title flow
Suppliers-manufacturers-dealers-customers

Payment flow
Suppliers-banks-manufacturers-bank-dealers-banks-
Customers
Information flow
Suppliers- transporters- manufacturers- transporters-
dealers - transporters customers

Promotion flow -
Suppliers-advertising-manufacturers-advertising-dealers-
customers
FORWARD FLOW
Physical, Title, Promotion

BACKWARD FLOW
Ordering and Payment

BOTH DIRECTION FLOW

Information, negotiation, finance, risk taking
 CHANNEL
LEVELS

DIRECT INDIRECT
MARKETING MARKETING
0-LEVEL 1-LEVEL 2-LEVEL 3-LEVEL

MANUFACTURER
MANUFACTURER
MANUFACTURER

MANUFACTURER

WHOLESELLER
WHOLESELLER

RETAILER JOBBER

RETAILER

RETAILER

CONSUMER

CONSUMER
CONSUMER
CONSUMER
 0-LEVEL 1-LEVEL 2-LEVEL 3-LEVEL

MANUFACTURER
MANUFACTURER
MANUFACTURER
MANUFACTURER

MANUFACTURER
MANUFACTURERS
MANUFACTURERS SALES BRANCH
REPRESENTATIVE

INDUSTRIAL
DISTRIBUTERS
INDUSTRIAL
INDUSTRIAL
DISTRIBUTERS
DISTRIBUTERS

INDUSTRIAL
CUSTOMERS
INDUSTRIAL
INDUSTRIAL INDUSTRIAL
CUSTOMERS
CUSTOMERS CUSTOMERS
 Vertical marketing system
Horizontal marketing system
Multi channel marketing system
VERTICAL CHANNEL CONFLICT

HORIZONTAL CHANNEL CONFLICT

MULTICHANNEL CONFLICT
 Goal incompatibility
Unclear roles and rights
Differences in perception
Intermediaries dependence on the manufacturer