RckEbgEckTMnij (Distribution Channels) Chapter 11 RckEbgEckTMnij (Distribution Channels)

Kotler on Marketing Establish channels for different target markets and aim for efficiency, control, and adaptability.

GVICaRckEbgEcklk;TMnij? (What is a Distribution Channel?) KWCaGgÁPaBmanPaBcMNuHKñaeTAvijeTAmk¬GnþrkarI¦ Bak;B½n§kñúg dMenIreFVIeGay TMnij nigesvaGacrk)ansMrab;kareRbIR)as;eday GñkeRbIR)as;cugeRkay rWGñk eRbIR)as;]sSahkmµ. (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.) karsMerccitþGMBIRckEbgEck Marketing KWCakarsMerccitþsMxan;bMput EdlGñk RKb;RKgRbQmnigman\T§iBledaypÞal;elIkar sMerccitþ Marketing déTeTot . (Marketing Channel decisions are among the most important decisions that management faces and will directly affect every other marketing decision.)

ehtuGVIRtUveRbIGnþrkarI? (Why are Marketing Intermediaries Used?) kareRbIGnþrkarICalT§plmkBIRbsiT§iPaBrbs;vakñúgkareFVIeGayTMnijGacrk )ancMeBaH TIpSareKaledA. (The use of intermediaries results from their greater efficiency in making goods available to target markets.) GacsMEdgskmµPaBl¥CagRkumh‘uneTAxøÜnÉg (Offer the firm more than it can achieve on it’s own through the intermediaries:) TMnak;TMng (Contacts,) bTBiesaFn¾ (Experience,) ÉkeTskmµ (Specialization) kMritRbtibtþikar (Scale of operation) eKalbMng³ bnSIúpÁt;pÁg; BIplitkreTAtMrUvkarBIGtifiCn (Purpose: match supply from producers to demand from consumers.)

(Number of contacts without a distributor) etIGñkEbgEckbnßycMnYnRckEbgEckya:gdUcemþc? (How a Distributor Reduces the Number of Channel Transactions) A. cMnYnTMnak;TMngedayKµanGñkEbgEck (Number of contacts without a distributor) M*C = 3*3 = 9 1 3 2 4 5 6 7 8 9 = Gñkplit = GtifiCn

etIGñkEbgEckbnßycMnYnRckEbgEckya:gdUcemþc? B. cMnYnTMnak;TMngedaymanGñkEbgEck M + C = 3 + 3 = 6 Store 1 2 3 4 5 6 = plitkr = GñkEbgEck = GtifiCn

What Work is Performed by Marketing Channels? Channel Functions and Flows Key functions include: Gather information about potential and current customers, competitors, and others Develop and disseminate persuasive communications to stimulate purchasing Reach agreements on price and other terms so that transfer of ownership or possession can be effected Place orders with manufacturers

What Work is Performed by Marketing Channels? Acquire funds to finance inventories at different levels in the marketing channel Assume risk connected with carrying out channel work Provide for the successive storage and movement of physical products Provide for buyers’ payment of their bills through banks and other financial institutions Oversee actual transfer of ownership from one organization or person to another

cMnYnkMriténRckEbgEck (Number of Channel Levels) kMritRckEbgEck-kMritnImYy²énRckEbgEck marketing Edl sMEdgkargar xøHkñúgkarnaMplitpl nigkmµsiT§ieTArkGñkTijcugeRkay (Channel Level - Each Layer of Marketing Intermediaries that Perform Some Work in Bringing the Product and its Ownership Closer to the Final Buyer.) M C Channel 1 RckpaÞl; M R C Channel 2 RckminpÞal; M W R C Channel 3 M W J R C Channel 4

karsMerccitþelIkarerobcMRckEbgEck (Channel Design Decisions) viPaKtMrUvkaresvaGtifiCn (Analyzing Consumer Service Needs) kMnt;eKaledARckEbgEck nig]bsKÁ½Á (Setting Channel Objectives & Constraints ) kMnt;CMerIssMxan;² (Identifying Major Alternatives) karsMerccitþelIkarerobcMRckEbgEck (Channel Design Decisions) vaytMélCMerIssMxan;² (Evaluating the Major Alternatives) EbgEckRbBlPaB EbgEckCMerIs EbgEckedayELk

Channel-Design Decisions Push strategy Pull strategy Designing a channel system involves four steps: Analyzing customer needs Establishing channel objectives Identifying major channel alternatives Evaluating major channel alternatives

Channel-Design Decisions Analyze Customers’ Desired Service Output Levels Lot size Waiting time Spatial convenience Product variety Service backup

Channel-Design Decisions Establish Objectives and Constraints Identify Major Channel Alternatives Types of Intermediaries Number of Intermediaries Exclusive distribution Exclusive dealing Selective distribution Intensive distribution

Channel-Design Decisions Terms and Responsibilities of Channel Members Price policy Conditions of sale Distributors’ territorial rights Evaluate the Major Alternatives Economic Criteria

karsMerccitþRKb;RKgRckEbgEck CMerIssmaCikRckEbgEck CMrujTwkcitþsmaCikRckEbgEck vaytMélsmaCikRckEbgEck FEEDBACK

Channel-Management Decisions Selecting Channel Members Training Channel Members Motivating Channel Members Producers can use: Coercive power Reward power Legitimate power Expert power Referent power

Channel-Management Decisions Distribution programming Distributor-relations planning Evaluating Channel Members Modifying Channel Arrangements

TMnas;nig\riyabfénRckEbgEck(Channel Behavior & Conflict) RckEbgEcknwgmanRbsiT§PaBx<s;kalNa³ smaCiknImYYy²RtUv)anRbKl;kargarEdleKGaceFVI)anl¥bMput smaCikTaMgGs;shkarKñaedIm,IsMerceKaledAénRckEbgEck nigbMeBjcitþGtifiCneKaledA RbsinebIvaminekIteLIg/ TMnas;ekIteLIg TMnas;ry³TT wgekIteLIgrvagRkumh‘un enAkMritRckEbgEckdUcKña ]> GñklkraycMeBaHGñklk;ray TMnas;ry³beNþayekIteLIgenAkMritepSgKñaénRckEtmYy ]> Gñklk;dMucMeBaHGñklk;ray edIm,IeGayRckEbgEcksMEdgkargar)anl¥ ral;smaCikRckEbgEck TaMgGs; RtUvEtkMnt;tYnaTI ehIyRtUvRKb;RKgTMnas;.

rUbPaBkardwkCBa¢Ún bMBg;bgðÚr Gakas pøÚvEdk rfynþ pøÚvTwk )anTUlay RbsiT§iPaBcMNay sMrab;TMnijbrimaNeRcIn rfynþ ERbRbYltameBl nigpøÚv RbsiT§PaBsMrab;cMgayCiténTMnijtMélx<s; pøÚvTwk cMNayTab sMrab;bBa¢ÚnbrimaNeRcIn tMélTab TMrg;yWt TMnijmingayxUc bMBg;bgðÚr naMeRbg ]sµ½nFmµCati CatiKImIBIRbPBenATIpSar Gakas cMNayx<s; Gs©arü eBlRtUvkarel,Ón rWcMgayq¶ayénTIpSar

eRCIserIsrUbPaBénkardwkCBa¢Ún cMnucEdlRtUvKiteBleRCIsmeFüa)aydwkCBa¢Ún 1. el,Ón 2. PaBcMnuH 3. Gacman 4. cMNay 5. epSg²