MARKETING CHANNELS

CHANNEL STRUCTURES

LEVELS OF DISTRBUTION INTENSITY

MANAGING CHANNEL RELATIONSHIPS

CHAIN OF SUPPLY

TRENDS IN SUPPLY CHAIN MANAGEMENT

DISTRIBUTION

Distribution decisions

Place, time, form and possession utilities.

Consist of two elements physical distribution and channel management.

Includes transportation, warehousing/storage, inventory management and related activities.

For e. g: Blue Dart

A MARKETING CHANNEL is a business structure of interdependent organizations which reach from point of product origin to the consumer with the purpose of physically moving products to their final consumption destination.

PLACE is the part of marketing mix that deals with making goods and services available in the right quantities and the locations when customer wants them.

MARKETING CHANNELS

CHANNEL MEMBERS negotiate with one another, buy and sell products and facilitate the change of ownership between buyer and seller in the course of moving the products from the manufacturer into the hands of final consumer.

Important aspect of marketing channel

CHANNEL MEMBERS facilitate the distribution process

1) PROVIDING SPECIALIZATION AND DIVISION OF LABOR

For e.g : soft drinks

2) OVERCOMING DISCREPANCIESFor e.g: Pilsbury

a) A discrepancy of quantity b) A discrepancy of assortment c) A temporal discrepanciesd) A spatial discrepancy

3) CONTACT EFFICIENCYFor e.g: supermarkets & shopping malls

FACILITATING FUNCTION

TRANSACTIONAL

FUNCTIONS

LOGISTICAL FUNCTIONS

Contacting / Promotion

Negotiating

Physically distribution

Risk taking

Storing Sorting

FinancingResearching

1) MULTIPLE OR DUAL DISTRIBUTION

e.g. advertisements through different channels

2) NONTRADITIONAL CHANNEL ARRANGEMENTS

3) STRATEGIC CHANNEL ALLIANCES

e.g. FIAT through TATA motors in India

FACTORS AFFECTING CHANNEL CHOICE

LEVELS OF DISTRIBUTION ON INTENSITY

MARKET FACTORS

PRODUCT FACTORS

EXCLUSIVE DISTRIBUTION

INTENSIVE DISTRIBUTION

PRODUCER FACTORS

SELECTIVE DISTRIBUTION

MARKET FACTORS : Mc Donalds

PRODUCT FACTORS : Assembly of Computers

PRODUCER FACTORS

INTENSIVE DISTRIBUTION : gum, chocolates, biscuits

SELECTIVE DISTRIBUTON :Mont Blanc

EXCLUSIVE DISTRIBUTION : Georgio Armani, Rolex watches, Valentino, Versace

SOCIAL DIMENSIONS

OF CHANNELS

CHANNEL POWER

CHANNEL PARTNERING

CHANNEL CONFLICT

CHANNEL LEADERSHIP

CHANNEL CONTROL

CHANNEL POWER

CHANNEL CONTROL

e.g. Ramalinga Raju had a power and he misused his power to control other channel members like auditors of Satyam

The complete set of firms and facilities and logistics activities that are involved in procuring materials, transforming them into intermediate or finished products, and distributing them to customers.

UPSTREAM MANAGEMENT

DOWNSTREAM MANAGEMENT

Cont..d

Goal

Philosophy

Changing strategy from “PUSH TO PULL”

For e.g: Dell Computers

Roles of SCM:- 1) COMMUNICATOR

2) PHYSICAL FLOW PROCESS

Functions and Responsibilities

Strategy decisions, co-ordinating, procurement, scheduling, transporting, storing.

Improving relationship

Benefits of SCM

COST

TRANSIT TIME

RELIABILITY

CAPABILITY

ACCESSIBILTY

TRACEBILITY

TECHNOLOGY

OUTSOURCING LOGISTICS FUNCTIONS

ELECTRONIC DISTRIBUTION