Channel Management & Distribution

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Introduction

Marketing \ Distribution channel Products & Services Move from production center to the end user or to another Business man for reaching the ultimate buyer.

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Channel distribution organization

Whole salers ;Retailers ; Sales Agents [Brokers]

TWO LEVEL STRUCTURE : THREE LEVEL: FOUR LEVEL: MANUFACTURER DIRECT

RETAILER COMING IN BETWEEN WHOLE SALER THEN RETAILER

FIVE LEVEL: AN AGENT BETWEEN WHOLE SALER & MANUFACTURER

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Distribution net work

1.Location where goods are stored A Factories B whole salers C. Retail outlets etc..
2.Mode of transport:[ connects locations] a. Air. Sea. Land [ road or rail] b. Satellite, internet etc

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Distribution net work

Distribution network can be classified under:

A:Simple net work : Where single source of supply is made Direct selling by the producer B: Complex: where more than one source is put into use Direct selling Retailers , whole sale, and other arrangements
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Marketing channel & Distribution decisions

Distribution decision help customers to gain access and purchase product of their choice Distribution decisions are relevant to all types of products & services. Distribution Decisions are equally important for digital goods[ software's] Modern day Internet is playing a major role in offering more opportunities to reach customer.
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For Effective & Efficient Distribution system

Asses the best available distribution channel Assess the requirement of a reseller network A reliable order placement system for customers to submit their requirement A proper delivery system to ensure timely delivery Proper facilities for product storage

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Types of Marketing Channel

Producer market his goods or through a specialist Resellers intermediaries , distributors. Retailers exclusive Whole salers : Agents, Brokers, Servicing units etc. Hybrid system: A marketer uses multi channel system is called Hybrid system. Example: Electronic gadgets selling through various channel.
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Designing Marketing Channel

Key factors are: a . Marketing decision issues:

Nature of the product ex: glass, medicine, flowers etc. Promotion sales ex: automobiles, electronic gadgets Pricing issues Target customer market issues:

b.

Channel relation issues

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Level of distribution coverage

MASS COVERAGE: F M C G products

SELECTIVE COVERAGE: AUOTOMOBILES EXCLUSIVE COVERAGE :
SELECTED FEW HIGH END VERY NARROW MARKET

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MEASURING PERFORMANCE

What are customers needed? What channel do they prefer? What services do they expect? Which brand they prefer?
Are the channels effective & efficient? What are the roles & responsibilities of C M

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