1. Channel Management

2. Learning Objectives
Concepts and definition of channels of distribution. Different distribution channels. Consideration in channel planning. Selecting channels of Distribution.

3. Reaching Your Customer
Customer Value is linked with Distribution Example :Using branded auto-rickshaws, milkmen and newspaper vendors for selling Uninor SIM cards or recharge vouchers.

4. Partnering with marketing intermediaries
Coke conducts a staggering amount of research on beverage consumers and shares these insights with its partners.
It analyzes the demographics of U.S. zip code areas and helps partners to determine which Coke brands are preferred in their areas.

5. Definition
“An organized network (system) of agencies and institutions which, in combination, perform all the functions required to link producers with end customers to accomplish the marketing task.”
-Definition given by AMA

6. Classification

7. Classification…

8. Clarification
Distributor: A wholesale middleman, especially in lines where selection or exclusive distribution is common at the wholesale level and the manufacturer expects strong promotional support. It is often a synonym for wholesaler.

9. Multiple Distribution

10. Advantages of Channel
Quantity
Assortment
Temporal and Spatial

11. Marketing Channel Functions Performed by Intermediaries

12. Economies : Maximize ROI Coverage : Many locations as possible
Key Considerations
Economies : Maximize ROI
Coverage : Many locations as possible
Control : Not losing decision making authority
E.g.. Apple’s Iphone in Asia
There is a trade-off between the above three.

13. Consideration in Channel Planning
Customer Considerations Product Factors Producer Factors

14. Customer Considerations
Who are the potential customers?
What do they buy?
Where do they buy?
How do they buy?
B2C or B2B?
Geographical Location
Size of the Market

15. Nature of the Product Product’s life cycle Delicacy of the Product
Product Factors
Nature of the Product Product’s life cycle Delicacy of the Product

16. Producer Factors
Size of the Producer No. of Product Lines Desire to control pricing, positioning, brand image, and customer support

17. Levels of Distribution Intensity
Intensive distribution attempts to achieve maximum retail exposure for the product. 
Customers will not go out of their way to find a specific brand and / or will easily accept substitute brands.
If a specific producer’s brand is not represented, consumers will switch to an available alternative.
Soft drink and candy distribution provide are typical examples.
Pepsi and Coke employ very intensive distribution through supermarkets, convenience stores, restaurants, and vending machines.
Every appropriate retail facility is targeted for distribution.

18. Levels of Distribution Intensity
Selective distribution limits the sale of products to a smaller range of retail facilities and is most appropriate for shopping and some specialty products that are tailored to meet the needs of well-defined market segments.
For much the same reasons, selective distribution is employed for most industrial equipment. Producers can limit distribution to those middlemen that best reach the targeted segments.
Polo and Tommy Hilfiger in fashion clothing and accessories are distributed through select retailers possessing images that are consistent with the desired positions of these brands..

19. Levels of Distribution Intensity
Exclusive distribution  is best suited to specialty goods and some shopping, as well as industrial equipment and installations.
Anytime the product requires very extensive support by the retailer or industrial seller, producers are wise to consider establishing exclusive distribution arrangements.
In return for assuring the reseller that it will face no competition in local markets for the producer’s brand, the reseller generally agrees to carry an extensive inventory, provide extensive promotional and merchandising support, provide repair services, or agree to honor other special arrangements.
Consumer products such as Rolls Royce, Joy Perfume, and Rolex watches are sold through only a select number of highly screened resellers.
In the industrial arena, John Deere and Caterpillar distribute their products through tightly controlled and heavily supported networks of industrial distributors.

20. Types of Channel Relationship
Integrated
{vertical integration}
Arm’s Length
Cooperative

21. Managing Channel Relationships
Horizontal Conflict
Vertical Conflict
Channel partnering

22. Global desi .com
Yebhi.com

23. Channel Conflict: Case of Apple
Apple is losing market to Samsung in Asia because the terms of contract not appealing to the network providers.
Should Apple go for selective, intensive or exclusive distribution.?

24. Resources