NAME : SUMEET SHARMA

CLASS : TY BBA SEM VI.

ROLL NO : 37
 
 
 
1) Marketing Channels Of distribution.
  

 The purpose of manufacturing any goods & services is to hand over the
same to the end users or customers for its utilization.  This entire
function of getting goods into the hands of customer is called as
distribution. The channel of distribution means the middle man is
engaged in moving goods from the place of production to the place of
consumption; which is also called as channel of distribution.
          The word ‘channel’ has been derived from the French word for
canal. These channels or routes or ways connect the producer with the
consumers. Some channels are straight, short and direct while some
others are long & distinct. Usually, more developed countries have
more level of distribution.
          According to William Stanton, “channel of distribution is the route
taken by the goods as they come from the producer to the ultimate
consumers or industrial user.”
          In simple words, a marketing channel is the means through which
the product moves from a producer to the ultimate consumer or
industrial user. The channel thus bridges the producer and users. The
channels of distribution include producers, wholesalers, agents,
middlemen and retailers. 
  2) Factors affecting channels of distribution.
  

a)    Market consideration:

This is the starting point for deciding
suitable market channel. The type of market for the product has
to be understood first. This is done by studying following factors:

1.    Nature of market: For industrial market, zero level

channel is more suitable. here producer directly cater the
requirements of industrial buyers. For consumer durable
and non-durable products, help of middleman in the form of
wholesale or retailer is required.
 
2.    Number of customers: For market having large potential
or large number of customer, middlemen are necessary. This
is more applicable for market for consumer durable and
non-durable products. On the contrary, in the case of
industrial market, number of customers are limited. In such
market, manufacturer can sell directly to the customer.
 
3.    Buying habits & expectations of customer: desire for
credit, preference for personal attention, the time customer
is willing to spend etc. affects selection of distributions
channel.
 
4.    .Geographical concentration: For customers concentrated
in particular area direct selling is desirable whereas for
customers widely dispersed, distribution through
middleman like wholesalers and retailers is more suitable.
5.    Size of the order: For orders of large quantity, direct
selling is suitable but for products sold in smaller quantity
use of middleman is advisable.
 
a)    Product consideration:
1.    Unit value: product like cosmetics, stationery, items for
day to day consumption product value is lower but total
turnover of such products is very high. For such products,
distribution is made through wholesaler and retailers. In the
case of products like industrial machinery product value is
very high. Normally, manufacturer sales such products
directly to the customers.
2.    Perish ability: perishable products like milk, fruits,
vegetables, eggs etc. are sold through shortest possible
channel of distribution or directly to the customer to avoid
losses. However, durable products can be distributed
through long channels of distribution.
 
3.    Bulky & heavy: For bulky & heavy goods, cost of
transportation is very high. It is also very difficult to handle
such products in transit. Hence such products are directly
delivered by manufacturer to the customer. This helps to
minimize transportation & handling costs.
 
4.    Technical product: products of highly technical nature
requires specialised selling activity. Such products are
normally sold directly by manufacturer to the customer.
5.    Order & standardized product: Highly standard products
are sold through wholesaler and retailer but goods
manufactured as per the specific order of the customer are
directly delivered by the manufacturer to the customer.
 
b)    Company consideration:
1)    Sale of product & desire to control: For enjoying full
control on sale of production, a big manufacturing unit may
find it profitable to sell his product directly to the customer.
 Even if manufacturing unit is producing wide range of
production, producer may under take sales by opening retail
outlet in different parts of the country.
 
2)    Financial resources: A financial strong company has
option to sell its products directly to the customer by
employing its own sales force or through middle men.
 
3)    Customers of Industry: In the most of the cases, channel
of distribution is decided by the custom of the industry.
Normally, a new entry can’t afford to ignore the standard
practiced followed in particular trade and he also follow
prevailing distribution channel pattern.
 
4)    Experience of management: If management is having
sufficient marketing experience it can undertake direct
marketing of its production to the customer. The company
having lack of this ability & experience will often rely on
experienced middlemen.
 
 
 
c)     Middlemen consideration:
1)    Availability of middlemen: A manufacturer always prefers
the middlemen who are ready to act according to the
instructions given by him. As far as possible manufacturer
will not entrust responsibility of marketing his production to
middle men who is also with marketing of competitors
product.
 
2)    Financial availability: Manufacturer will select middlemen
having strong financial status. Middlemen have to provide
 credit facilities to his customers at the same time they have
to make regular payment to the manufacturer.
 
3)    Sales volume: A manufacturer will select the middle men
who will assure him maximum sales volume in the long run.
It is very difficult for a manufacturer to judge correct
channel of distribution and employ the same for getting
maximum long term business.
 
4)    Costs: Cost of sales is an important item of the cost
considered by manufacturer. By the way of commission to
the middlemen, within specific limits.
 
d)    Legal consideration: Many times manufacturer has to select
the channel of distribution as per the rules & regulation laid down
by Central Government like Municipal Corporation etc.
 
 
 
e)    General consideration:
1)    Suitability & Efficiency: The selected merketing channels
must be suitable & appropriate according to the marketing
policies & programme of the manufacturer.
 
2)    Flexibility: The selected channels must be flexible &
capable of being changed without causing much damage to
the market reputation of the product.
 
3)    Competitive ability: The selected channel must have
adequate competitive ability to compete with the
competitors channels of distribution.
 
   3) Meaning Of Physical Distribution.
          Physical distribution is to deliver the right goods to the right
customer at the right time & place.  It is the process of delivering the
product to the user or consumer promptly, safely & in time. It involves
planning, action and control of the physical flow of the raw materials
and finished products from the point of origin to the point of
consumption to meet the customers’ needs. Distribution planning and
accounting, in bound transport, receiving, inventory management, in
plant warehousing, order processing, packaging, dispatch of goods, out
bound transport, field warehousing, customer service and
communication are the components of physical distribution.
The main components are:
a)    Transportation
b)    Warehousing
c)     Inventory management.
It also involves the flow of raw material from the supplier to the
factory. It focuses on an efficient movement of goods from
manufacturers to the intermediaries and the consumer. Channel and
physical distribution decisions are interrelated but channel decisions
trend t be made earlier.
       The aim of physical distribution is to provide intermediaries
and consumers with the right product, in right quantities, in
right location, at right time.
       Effective physical distribution saves cost  & improves
customer service levels. Cost saving can be achieved by
reducing inventory levels, using cheaper forms of transport &
shipping in bulk. Customer service levels can be improved by
fast & reliable delivery, holding high inventory so that 
customers have a wide choice & the chance of stock out are
 reduced, fast order processing & ensuring products arrive in
the right quantities & quality.
       Analyzing  the market in terms of customer service needs &
price will reveal to two segments:
        Low service need, high price sensitivity.
        High service needs, low price sensitivity.
       Physical distribution management concerns the balance
between cost reduction & meeting customer service
requirements.
  4)   Role and Importance of Physical distribution.
a)    Satisfying customer Demand: they satisfy demand of the
consumer by supplied goods and services at right place, quantity,
quality, time and price. Generally, manufacturer produces goods
in large quantity and of limited types. Customer wants large
variety of goods in small quantity. The members of marketing
channel protect the interest of manufacturer and the customer.
 
b)    Stimulating Demand: They stimulate demand by under taking
promotional activities on behalf of manufacturer.
 
c)     Creation of value for customers: They create value for the
customer by generating possession, time, place and convenient
utility for the product.  This is achieved by supplying goods or
services at right place, quantity, quality, place and time.
 
d)    Transportation of Goods: They under take transportation of
goods from place of manufacture to the place of consumption.
 
e)    Storage of Goods: They make necessary arrangement for
proper storage of goods. This function also involves related
activities like Sorting, Assembling, Allocation and Assorting of
goods.
 
f)      Other Function : They also perform general function like-
                            I.            Demand Generation

                          II.            Selling

                       III.            Physical Distribution

                      IV.            After sale services

                         V.            Extending credit to the customer.

 
g)    Scope of Marketing: Physical Distribution is not only a cost, it
should be regarded as one of the tools in competitive marketing.
A market can attract additional customers and maintain existing
customers. Marketing have to evolve an appropriate physical
distribution process which will fulfill the objectives of adequate
customer satisfaction.
 
h)    Sales generating power: Marketing management has realized
that there is a connection between merchandising programmed
and physical distribution services. Even customers give more
importance to physical distribution than to price and promotion
services. It gives higher customer satisfaction.
 
i)       Management Science: It can be easily applied to secure
solution of physical distribution problem particularly in the
location of warehouse, in arriving at the optimum size of
inventory & in determining transport route.
 
j)       Rising Competitive Demand: Through physical distribution
management has got the benefits of lower costs and higher levels
of customer service & thereby could reduce their operating
expenses.
5)    Components  of physical distribution.
a)    Customer service: It is the percentage of orders that are
filled in time it is important to set standards of customer
services.
 
b)    Order Processing: Order processing includes receiving,
recording, filling and assembling of products for dispatch. It
determines date of order or delivery period and product will
reach at right time. Electronic data processing expedites order
processing and minimizes the errors and automatically reduces
rejection at customer stage. Detailed records of orders must be
kept to avoid future problems.
 
c)     Inventory Control: Inventory management is a powerful tool
in the process of creation of customer demand. Inventory is an
investment and hence control over inventory is very important.
Unwanted inventory means waste of scarce financial resources.
Most of the manufacturers have separate materials
management department. Standards in inventory control are
maximum, the minimum, the ordering point and the standard
order. Techniques used in inventory management are ABC
Analysis, Value Analysis, Economic Order Quantity (EOQ),
Linear programming and PERT and CPM.
 
d)    Warehousing:  Warehouses performs functions like dispatch
of materials to retailers, holding the stocks for retailers, store
keeping store keeping etc. in marketing, warehouses regulates
market supplies according to changing market demand. So,
customers get delivery at right time. For store keeping,
methods like FIFO, LIFO are very advantageous.
 
 e)    Packaging & Material Handling:  Packaging is very important
to avoid damages, losses and to attract the customer. New
systems of packaging, containerization helps for cost reduction.
The modern mechanized handling services and protective
packages have improved the level of customer services and
lowered the physical distribution cost.
 
f)      Transportation: The selection of mode of transport will
depend on type of product, urgency of delivery and the volume
being transferred. The company can use any one combination
from the following:
       Rail
       Road
       Air
       Water transport
       Pipeline.

  6)   Marketing Channel: Definition & concept.

          The purpose of manufacturing any goods & services is to hand
over the same to the end users or customers for its utilization.  This
entire function of getting goods into the hands of customer is called as
distribution. The channel of distribution means the middle man is
engaged in moving goods from the place of production to the place of
consumption; which is also called as channel of distribution.
          The word ‘channel’ has been derived from the French word for
canal. These channels or routes or ways connect the producer with the
consumers. Some channels are straight, short and direct while some
others are long & distinct. Usually, more developed countries have
more level of distribution.
          According to William Stanton, “channel of distribution is the route
taken by the goods as they come from the producer to the ultimate
consumers or industrial user.”
          In simple words, a marketing channel is the means through which
the product moves from a producer to the ultimate consumer or
industrial user. The channel thus bridges the producer and users. The
channels of distribution include producers, wholesalers, agents,
middlemen and retailers. 
k)    Satisfying customer Demand: they satisfy demand of the
consumer by supplied goods and services at right place, quantity,
quality, time and price. Generally, manufacturer produces goods
in large quantity and of limited types. Customer wants large
variety of goods in small quantity. The members of marketing
channel protect the interest  of manufacturer and the customer.
l)       Stimulating Demand: They stimulate demand by under taking
promotional activities on behalf of manufacturer.
 
m) Creation of value for customers: They create value for the
customer by generating possession, time, place and convenient
utility for the product.  This is achieved by supplying goods or
services at right place, quantity, quality, place and time.
 
n)    Transportation of Goods: They under take transportation of
goods from place of manufacture to the place of consumption.
 
o)    Storage of Goods: They make necessary arrangement for
proper storage of goods. This function also involves related
activities like Sorting, Assembling, Allocation and Assorting of
goods.
 
p)    Other Function : They also perform general function like-
                                        I.            Demand Generation
                                      II.            Selling
                                   III.            Physical Distribution

                                  IV.            After sale services

                                     V.            Extending credit to the customer.

 
q)    Scope of Marketing: Physical Distribution is not only a cost; it
should be regarded as one of the tools in competitive marketing.
A market can attract additional customers and maintain existing
customers. Marketing have to evolve an appropriate physical
distribution process which will fulfill the objectives of adequate
customer satisfaction.
r)      Sales generating power: Marketing management has realized
that there is a connection between merchandising programmed
and physical distribution services. Even customers give more
importance to physical distribution than to price and promotion
services. It gives higher customer satisfaction.
 
s)     Management Science: It can be easily applied to secure
solution of physical distribution problem particularly in the
location of warehouse, in arriving at the optimum size of
inventory & in determining transport route.
 
t)      Rising Competitive Demand: Through physical distribution
management has got the benefits of lower costs and higher levels
of customer service & thereby could reduce their operating
expenses.
  7)   Features & characteristics of marketing channels or
Channels of distribution.
a)    Marketing channels includes the producer, the ultimate
consumers and the intermediaries involved in the process of
distribution.
 b)    The intermediaries bridge the gap between the producer and
ultimate consumers. In other words, they act as a link between
the producer and the consumer.
c)     Marketing channels help large-scale distribution of products.
The transfer the ownership of goods from the producer to the
consumers.
d)    Marketing channels create time, place and possession utility.
Time utility is created by making the goods available when the
consumer needs them, place utility is created by making the
goods available where the consumer wants them and possession
utility is created by transferring physical possession of the goods
along with the ownership and the title of product to the
consumers.
e)    Marketing channels perform marketing functions like storage
of goods, risk bearing, financing, advertising, sales promotion etc.
f)      Marketing channels concentrate on distribution of goods. The
producer can therefore concentrate on production activities. This
leads to specialization in production & distribution.
g)    Marketing channels form a sub-variable of place mix, which is a
component of marketing mix.
h)    Today marketing world is highly competitive and thus it
increases the importances of marketing channels. They provide a
number of marketing channels are indispensable.
8) Functions of channels of Distribution.
  

a)    Large Scale Distribution of Goods: The channel members bring

about large scale distribution of goods. They create place utility by
making goods available wherever the consumers want them. The
producer is relieved of the job of distribution of goods. They can
concentrate on production.
 
b)    Information about Target Audience: The channel members are
in direct touch with the customer. They are aware of their likes,
dislikes, preferences, expectations etc. The channel members pass
on this information to the producers, which enable them to devise
products as per the customer’s requirements.
 
c)     Persuasion: In this competitive era, it is necessary to persuade
people to buy the product. Persuasion is especially essential if the
product is new. This is done by the channel members. Some
companies in fact use ‘push strategy’ for promoting their
products.
 
d)    Attractive Display of Merchandise: Point of purchase or
attractive display of products is an effective technique of selling
the product. Intermediaries have attractive showrooms, where
they display various brands. It enables the customer to recollect
the brands, which can induce him to purchase them.
 
e)    Finalize Deals: The intermediaries act as brokers between the
customers and the manufacturers, especially if the customer
intends to purchase in bulk.
f)      Storing of Goods: Goods have to be stored properly to keep
their qualities intact. Production is under taken in application of
demand. The intermediaries solve this problem as they have
storage facility.
 
g)    Risk Bearing: The channel members undertake the risk in the
marketing of goods and services. The ownership & possession of
goods get transfer from the producer to the intermediaries as the
product moves from the centre of production to the centre of
consumption. With transfer in ownership the risks automatically
gets transferred. 
  9)   Types  of  Channels.
a)    Wholesaler: Wholesaler acts as a connecting link between
manufacturer and retailer and other merchants. Wholesaler buys the
goods from manufacturer and resells the same to the retailer.
 
b)    Retailer: Retailer acts as a connecting link between wholesaler
and customer. They are in direct contact with the customers.
Retailer buys goods from wholesaler and sale the same to the
customer. They operate on smaller scale as compared to the
wholesaler.
 
c)     Commission house: They are also called as commission
merchants. They usually have physical control of the goods they
handle. These houses are in a position to enjoy broader control on
order prices, method and terms of sales etc. than brokers. They
arrange delivery of goods, extend necessary credit, collect the
credit etc. for these services rendered they get commission from
the principal. The commission houses are bound to obey
instructions given by their principal.
       Agent: They are the middleman who do not take any title
of goods but play very active role in the marketing
mechanism. They render various services to their clients.
       Brokers: They are the agent who does not have direct
and physical control of the goods in which they deal. They
represent either the buyer or the seller. They render their
services by negotiating purchase or sale for their principals.
       Dealers and distributors: Dealers normally buy and resale
products at wholesale or retail level. Whereas distributor is
the term used for wholesaler.
       Jobbers: They are special types of wholesaler undertaking
their activities in specialized trades and location like stock
market.
        Rack Jobbers: This is a wholesaling business unit
specialized in marketing specialized lines of products in
certain types of retail stores. They also provide special
services such as arrangement, maintenance and stocking of
products in display racks. The Rack jobber normally keeps
his goods in the store of the retailer on consignment basis.
This is the most common types of middleman in the food
business. 
       Resident buyer:  This is the type of agent or an individual
person, who is specialized in buying specialized goods &
resale the same on commission basis.
      All above middleman of the channel of distribution are
specialized in their field of activity. Because of their efficient
operations right type of goods are available at right time, at
right price and at right place.
  10) Levels of channels.

  Tracking website visit.

 

The idea behind a web tracker is very simple and has been around for
many years. Essentially you place a small piece of code on your website,
when someone visits your website, that small piece of code is executed
and the visitor's public details (ip address, browser, operating system,
referrer, page title and url etc) are analysed and stored for reporting to
you later.

The great advantage of web trackers are that they are better at tracking
'real people' as they track browsers NOT server requests. This often
means a web tracker will have a significantly lower count than standard
log file analysis. But it offers a more realistic figure of the visitors to
your website and far more detail. At StatCounter our web tracker is
provided in real-time so it's even better still.
A web tracker also records your visitors if they return to the same page
twice or more. This does not happen with log files. Your page would be
already cached in your browser. No request would be sent to the server.
That user activity would go unreported. Thanks to web trackers and their
use of a random javascript number - your counter is forced to load each
time and your visitor is tracked.

As web trackers only track 'real people', it is not able to tell you when a
search engine spider is indexing your website. For information like this
you need a good log analyser.

Web visitor tracking (WVT) is the analysis of visitor behaviour on a

website. Analysis of an individual visitor's behaviour may be used to
provide that visitor with options or content that relates to their implied
preferences; either during a visit or in the future. Use of WVT
technologies can be controversial when applied in the context of a
private individual; and to varying degrees is subject to legislation such
as the EU's eCommerce Directive[1] and the UK's Data Protection Act[2].
However in a business to business context understanding a web site
visitors behaviour in order to identify buying intentions is seen by many
commercial organisations as an effective way to target marketing
activities[3]. Visiting companies can be approached, both on and
offline,with marketing and sales propositions which are relevant to their
current requirements. From the point of view of a sales organisation,
engaging with a potential customer when they are actively looking to
buy can produce huge savings in otherwise wasted marketing funds.
 
  Click stream  analysis.
 
Clickstreams, also known as clickpaths, are the route that visitors choose
when clicking or navigating through a site.
A clickstream is a list of all the pages viewed by a visitor, presented in
the order the pages were viewed, also defined as the ‘succession of
mouse clicks’ that each visitor makes.
A clickstream will show you when and where a person came in to a site,
all the pages viewed, the time spent on each page, and when and where
they left.
Taken all together, as aggregated statistics, clickstream info will tell you,
on average, how long people spend on your site, and how often they
return. It will also tell you which pages are the most frequently viewed.
An interactive clickstream is a graphic representation of a clickstream; a
list of pages seen in the order in which they were visited. The graphic
allows you to click on the pages, and see what the visitor saw, hence the
label 'interactive'.
The most obvious reason for examining clickstreams is to extract
specific information about what people are doing on your site.
Examining individual clickstreams will give you the information you
need to make content-related decisions without guessing.
There is a wealth of information to be analyzed, you can examine visitor
clickstreams in conjunction with any of the information provided by a
good stats program: visit durations, search terms, ISPs, countries,
browsers, etc. The process will give you insight into what your visitors
are thinking.