Slide 1Marketing Management
Ms.Vandana Gupta
Amity Business School
‘Marketing channels can be viewed as set of interdependent organizations involved in the process of making a product or service available for consumption or use’
Amity Business School
Amity Business School
Distributor
TIME
UTILITY
POSSESSION
UTILITY
PLACE
UTILITY
Direct
Personal Selling
Direct Mailing
Catalogue Marketing
One Tier Distribution System
Two Tier Distribution System
Multi Tier Distribution System
Amity Business School
Greater market coverage, dominance and penetration
Sustainable competitive Advantage
Distribution cost containment
Improvement of Social and Economic welfare
Amity Business School
Channel Number
Channel Length
Channel Width
Intensive Distribution
Exclusive Distribution
Selective Distribution
Market
Variables
Product
Variables
Evaluating Channel members
Amity Business School
Prominent channel systems
Horizontal marketing system ( HMS)
Multi- channel marketing system
Flows in Marketing channels
A flow is a set of functions performed in sequence by channel members.
There are basically eight universal flows-
Physical Possession
Amity Business School
Basic channel flows
All the functions performed by the marketing channel recognizes three kinds of flows:-
Forward Flow – from the company to the customers, basically goods & services
Backward Flow -from the customers to the company, basically the value of goods & services
Flows both ways -mainly Information
The same is further broken to five kind of flows
Physical flow of goods
Payment flows
Information flow
Promotion flow