Business Marketing

Lecture Schedule
• Marketing channels
• Channel designs
• Channel Administration
• Channel Management.
 Distribution Channel?
• A set of interdependent organizations
(intermediaries) involved in the process of
making a product or service available for use
or consumption by the consumer or business
user.
 Financing
Financing Risk
Risk Taking
Taking
Ordering
Ordering
Physical
Physical
Distribution
Distribution
Negotiation
Negotiation Payments
Payments
Communication
Communication Transfer
Transfer
Information
Information
Functions of marketing channels
Typical Channels of Distribution

ANUFACTURER ONSUMER

GENT

ETAILER

HOLESALER
Business-to-Business Channels

Direct

Wholesaler

Agent
 Business-to-Business Channel Trends

Infomediaries & Vertical Exchange

 Channels
Direct Distribution – No intermediaries.
• When customers are large and well defined.
• When customers insists on direct sales.
• When extensive negotiation is needed.
• When information service is needed.
• In most complex sales opportunities
 Indirect Distribution
• Uses at least one type of intermediary.
• When markets are fragmented and widely
dispersed.
• When Low transactions are needed.
• When buyer is aware about the use and
benefit of the product.
 Blended distribution

Xerox

Direct Sales force Retail Stores Dealers Online

Middle market, Small and

Large corporate, Home, Office,
medium sized medium sized
Govt. Organization Small business
organization customers
 Distributor Responsibilities
• Contact
• Product availability
• Repair
• Assembly and light manufacturing
 Distributors - Features
• Full range of marketing functions
• Provide credit
• Delivering goods
• Technical advice
• Meeting emergency requirements
• MRO supplies (Maintenance, Repair,
Operations)
• Other value added functions
 Distributors - Types
• General line Distributors
• Specialist
• Combination house