By Pallavi Choudhari

Rutika Dindorkar
Amol Dhaigude
Dinesh Chavan
 Def , Nature, Scope, Function.
 Channel Design Decisions.
 Channel Management Decisions.
 Channel Dynamics.
 “A marketing channel is an organized network of
agencies and institutions which , in combination
perform all the activities required to link producers
with users to accomplish marketing task.”

 Interdependent organizations involved in the process

of making a product available for use.
 Marketing Channel: system of marketing
institutions that promotes the physical flow of
goods and services, along with ownership title,
from producers to consumer or business user;
also called a distribution channel.

 The network of partners in a value chain that

cooperate to bring products from producers to
ultimate consumers.
 Physical Flow
 Payment Flow
 Information Flow
 Promotion Flow
 Flow of Ownership
 Channels provide the means by which the
firm moves the goods and services it
produces to ultimate users
◦ Facilitate the exchange process by cutting the
number of contacts necessary
◦ Adjust for discrepancies in the market’s
assortment of goods and services via sorting
◦ Standardize exchange transactions
◦ Facilitate searches by both buyers and sellers
 Channel choices affect other decisions in
the marketing mix
◦ Pricing, Marketing communications
 A strong distribution system can be a
competitive advantage
 Channel decisions involve long-term
commitments to other firms
Consumer
goods
Business goods
services
 Agent / Brokers
 Wholesalers
 Retailers
 Value – added services
 Information
 Promotion
 Contact
 Matching
 Negotiation
 Physical Distribution
 Financing
 Risk taking
 Push or Pull Strategy
 Analyzing Customer Needs
 Establishing Channel Objectives
 Identifying Major Channel Alternatives
 Evaluating Major Channel Alternatives
 Selecting Channel Members
 Training Channel Members
 Motivating Channel Members
 Coercive Power
 Reward Power
 Legitimate Power
 Expert Power
 Referent Power
  Evaluating Channel Members

 Modifying Channel Arrangements

1. Introductory 4. Decline
PC’s hobbyist stores PC’s Mail Orders
Designer apparel: Designer apparel:- Off-
Boutique price Stores

2. Growing 3. Mature
PC’s :- Specialty Retailers PC’s : Mass merchandisers
Designer apparel Designer apparel:- Mass
Better Dept. stores merchandisers
 “Conflict is a process that begins when
one party perceives that another party has
negatively affected, or is about to
negatively affect, something that the first
party cares about”
Thomas K.W.
 Vertical level conflict

 Horizontal level conflict

 Multi- channel level conflict

 Goal incompatibility

 Role ambiguity

 Difference in perception of market

 Communication
 Dealers’ council
 Subordinate goals
 Motivating
 Reward power
 Coercive power
 Distribution is highly important
 Especially in consumer products
 More so in countries such as ours
 Managing channels is part of a

salesperson’s job
 Conflict must never be allowed to get out

of hand