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.
 CHANNEL MEMBERS facilitate the
distribution process

1) PROVIDING SPECIALIZATION AND

DIVISION OF LABOR

For e.g. : soft drinks

2) OVERCOMING DISCREPANCIES
For e.g.: Pillsbury
a) A discrepancy of quantity
b) A discrepancy of assortment
c) A temporal discrepancies
d) A spatial discrepancy

3) CONTACT EFFICIENCY
For e.g.: supermarkets & shopping malls
 Contacting / Promotion
TRANSACTIONAL Negotiating
FUNCTIONS
Risk taking

Physically distribution
LOGISTICAL
FUNCTIONS Storing
Sorting

FACILITATING Researching
FUNCTION Financing


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 LEVELS OF
AFFECTING DISTRIBUTION ON
CHANNEL CHOICE INTENSITY

MARKET FACTORS INTENSIVE DISTRIBUTION

PRODUCT FACTORS SELECTIVE DISTRIBUTION

PRODUCER FACTORS EXCLUSIVE DISTRIBUTION

MARKET FACTORS : Mc Donald's

PRODUCT FACTORS : Assembly of Computers

PRODUCER FACTORS
INTENSIVE DISTRIBUTION : gum, chocolates,
biscuits

SELECTIVE DISTRIBUTON : Mont Blanc, Color

Plus, Arrow, Zodiac

EXCLUSIVE DISTRIBUTION : Georgio Armani,

Rolex watches, Valentino, Versace
 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.

 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-coordinating, procurement,

scheduling, transporting, storing.

 Improving relationship
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COST
TRANSIT TIME
RELIABILITY
CAPABILITY
ACCESSIBILTY
TRACEBILITY