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Business Marketin G Channels
Business Marketin G Channels
Business Marketin G Channels
MARKETIN
G
CHANNELS
Aaron savio francis (RA1852001010066)
Janu s (RA1852001010087)
Akshay kumar (RA1852001010094)
IMPORTANCE OF CHANNEL
COMPONENT
• Selecting the channel design mix is challenging
1. Marketing goals differ between channel members
2. Business markets segments vary, thus it may require numerous channels
concurrently
3. Business market environment constantly changes
4. Customer requirements change
MANAGING THE
CHANNEL
• Once a channel structure is specified and goals set, marketing managers need to:
1. Develop procedures for selecting intermediaries
2. Motivate them to meet goals
3. Resolve conflict between them
4. Evaluate performance
DISTRIBUTION
CHANNEL
• The link between the manufacturer and the customer is called the Channel of
Distribution.
• The channel accomplishes all the tasks necessary to get the product/service to
market
• Tasks can be performed by the manufacturer or be delegated throughout the
channel
CHANNEL
TASKS
• Contacting potential buyers • Financing
• Negotiating • Servicing the product
• Selling • Inventorying
• Contracting • Transporting
• Transferring title • Storage
• Training
DIRECT
CHANNE
LS
Direct is when the manufacturer performs all the marketing functions.
• In direct distribution system the marketer reaches the target consumer
directly without the use of any intermediary.
• The distribution chain is small and no other party can take ownership of the
product being distributed.
• The direct distribution system can be further sub-divided on the basis of the
methods of communication that takes place during sale between marketer
and consumer.
INDIRECT
CHANNE
•
LS
Indirect is when some type of intermediary sells or handles the product.
• In indirect distribution system the marketer includes intermediaries or other
members in his distribution chain.
• These resellers make sure the product reaches the end user, while performing their
duties they take complete ownership of the product.
• However the reseller may sell products on a consignment basis wherein the reseller
pays for the product only when the product is sold.
• The resellers may be expected to take up a few responsibilities to help boost the
sales of the product.
B2B MARKETING
CHANNELS
Manufacturer
Industrial
Distributors
Customer Segments
DIRECT SALES FORCE REQUIRED
WHEN:
• Sale is complex
• Product/service is highly customized
• Customers are large
• Products are complex
• Sales involve extensive negotiations
• Professionalism is required
• Customer requires direct contact
• Then, seller must control the process to ensure proper implementation of total product
package and to guarantee quick responses to market conditions.
INDIRECT DISTRIBUTION FOUND WHERE…