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Marketing Channels: Presented By, Deepak Tyagi Shikha Gupta
Marketing Channels: Presented By, Deepak Tyagi Shikha Gupta
CONTENTS
Definition
Evolution of Market Channels. Channels Member & Their Roles.
Designing Marketing Channels.
,1988).
A marketing channel is a process of making a product or service available to the end-user for use or consumption. Also known as Distribution channels.
1. The Production Era (In late 19th &early 20th century):More emphasis on production volumes, capacity expansions & plant efficiency. Salesperson job was not highly regarded. Salesmanship considered as a profession without prestige. Selling was considered as an art rather than a field requiring skills & knowledge
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2. The Sales Era (Began in 1920s):Industrialization & economic prosperity at peak Mass production continued Elevation of the sales position in the eye of management Realized that selling requires skill & knowledge & not merely the creation of goodwill. Term Scientific salesmanship came into existence Sales force also used to recruit the Individuals
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3. The Marketing Era (In 1950s):New Manufacturing processes & technology advancement Was thought as an essential link Between the seller and the prospective Buyer. Required to play the role of a problem-solver, educator & an empathizer. Responsibilities included was Planning, forecasting, setting goals and market development Salesperson was required to manage a market
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4. Relationship Marketing Era (At
present):-
Highly competitive market Focus on customers Existing & potential Relationship marketing came into existence Sales person work was to understand the customer needs & offer them the relevant product at the appropriate time.
sellers:-
Lower the uncertainty among end-users In their absence, manufactures would also be confuse about how to approach customers 2. Sorting:Channel members eliminate the differences in the collection of goods & services offered by company
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3. Making transactions routine:Transactions involve ordering of goods or services, fulfilling orders & paying for goods & services purchased. i.e., Manufacture-Wholesaler-Retailer-Customer Help in making transactions routine through standardizations & automations 4. Contractual efficiency:Channel Intermediaries have to optimize the number of exchange relationships required to complete a transaction.
Zero-level channel
One-level channel
Retailers
Manufactures Consumers
Three-level channel
Wholesalers Agents Retailers
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2. CHANNEL INTENSITY:It refers to the number of intermediaries present in a distribution or marketing channel.
Intensive distribution
Producers of products stock their goods in as many outlets as possible as possible by considering time & place utility.
Exclusive distribution
Producers of some products limit the number of intermediaries handling their product to deliver maximum service quality to customers, try to develop a superior brand image for their product.
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Selective distribution
It is adopted when the manufacturer lacks the resources to adequately influences the policies of all the intermediaries who can carry a particular product. The manufacturer distributes products only to specific retailers selected on the basis of defined criteria.
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3. TYPE OF CHANNEL INTERMEDIARIES AT EACH
They sell the manufacturer's product to the wholesalers, retailers, other businesses & also to institutions such as hospitals, libraries & school. They may represent more than one manufacturer. Also called account executives or sales engineers.
It comprises the salespersons who are on the companys rolls & received a fixed salary. Devotes their entire time & effort to selling that product or service of that manufacturer.
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Industrial distributors
These are independent firms consisting of sales & support personnel. They differ from manufacturer's in that they take possession of the products they sell & have a partnership arrangement with the manufacturer. Examples: Norton, Pfizer & 3M.