Marketing Channels Chapter 1 Marketing Channels Structure and Functions

Marketing Channels Definition Marketing Channels are the routes or ways to market product and services that consumers and business buyers purchase. Marketing channels can also be set of interdependent organizations involved in the process of making a product or service available for the use of consumption.

Why do marketing channels exists and change  Demand-Side factors Uncertainty of customer Uncertainty of producer  Adjustment of Assortment Discrepancy Sorting Accumulation Allocation Assorting

Why do marketing channels exists and change  Supply-Side Factors Routinization Of Transaction CRP (Continues Replenish System) Reduction in number of Contacts  Cost effectiveness  Easy Handling  Value Addition

Reduction in Contacts

What is the Work of Marketing Channels  Flow of Marketing Channels Producers Distributors Whole Seller Retailer Consumer

Marketing Channels Flow

A Framework For Channel Analysis  Channels Segmentation  Structure Decisions  Splitting the Work Load  Degree of Commitment  Gap Analysis  Identifying Power Sources  Channels Conflict  Goal of Channel coordination  Insights for Specific Institutions

Service Output Demand Differences

Framework of Channel Design and Implementation  Channel Design Process Segmentation  Recognize  Respond  Target customer  Service Output demand  Decision about efficient Channel Response

Framework of Channel Design and Implementation  Channel Design Process Channel Structure  What kind of intermediaries are in my channel ?  Who are they ?  How many of them ? Splitting the work load  Define responsibilities  Area of specialization

Framework of Channel Design and Implementation  Channel Design Process Degree of Commitment  Distribution Alliance  Vertical Integration/Ownership Gap Analysis  What do I have to change ?

Framework of Channel Design and Implementation  Channel Implementation Process Channel Power  Identify Sources Channel Conflict  Identify actual and potential source Manage/Defuse Conflict  Use Power Source Goal  Channel Coordination

Framework of Channel Design and Implementation Channel Design Channel Implementation Insights for Specific Channel Institutions Retailing, Wholesaling and logistics, Franchising