This document discusses various topics related to distribution channels and retailing. It begins by defining distribution channels and listing the types of intermediaries involved. It then explains the importance of distribution channels for companies and discusses factors that influence channel structure decisions. The document also covers online marketing, describing advantages and challenges. It defines retailing and outlines emerging trends, including new retail forms, global retailers, and different levels of retail services. Overall, the document provides an overview of key concepts in distribution channels and retailing.

1. UNIT - IV

2. PLACEMENT MIX : [ PLACE MIX]
• Functions and types of intermediaries
• The flows
• The marketing logistics
CHANNELS OF DISTRIBUTION ADDRESSESS THE
FOLLOWING :
1.
2.
3.
4.
Distance gap
Time gap [temporal gap]
Perceptional gap
Transactional gap

3. IMPORTANCE OF DISTRIBUTION CHANNEL :
• Distribution channel is an important element of the
marketing mix of a firm & other elements are closely
inter – related like pricing, promotion and product
• It enables to cut down costs and maximize sales revenue
• It determines where and when the product will be
available to ultimate consumers or users
• It involves the long – term commitment of the firm
changes in the channel are very difficult and costly.
• Fluctuations in the production can be reduced due to
continuous & effective distribution.

4. MARKETING MIDDLE MEN – KINDS :
1. Agents
2. Brokers
3. Dealers
4. Distributors
5. Jobbers
6. Rack jobbers
7. Resident buyer
8. Retailers
9. Whole sellers
10.Commission houses
11.Discount houses
12.Branch houses
13.Facilitating houses
14.Consumer co – operatives
15.Industrial stores

5. PARTICIPANTS IN THE DISTRIBUTION CHANNEL :
1.
2.
3.
4.
5.
6.
7.
Initiators
Users
Influencers
Deciders
Approvers
Buyers
Gate keepers

6. ** v.Imp CHANNEL DESIGN DECISIONS :
I. Analysing customer’s desired service output levels :
• Lot size
• Waiting time
• Spatial convenience
• Product variety
• Service backup
II. Establishing objectives and constraints.
III. Identifying major channel alternatives:
a) Based on types of intermediaries
 Company sales force
 Manufacturing agency
 Industrial distributors

7. b) Number of alternatives / intermediaries
 Exclusive intermediaries
 Selective intermediaries
 Intensive intermediaries
c) Terms & responsibilities of channel members
 Pricing policy
 Conditions of sale
IV. EVALUATING THE MAJOR ALTERNATIVES :
 Economic
 Control
 Adaptive

8. CHANNEL MANAGEMENT DECISIONS :
1.
2.
3.
4.
5.
Selecting channel members
Training channel members
Motivating channel members
Evaluating channel members
Modifying channel arrangements.
CAUSES OF CHANNEL CONFLICT:
•
•
•
•
•
•
Goal incompatibility
Conflict b/w national a/c managers & field sales force
Conflict b/w the field sales force & tele – marketers
Conflict b/w sales force & dealers
Differences in perception
Greater dependence

9. MANAGING CHANNEL CONFLICT :
• Fix super ordinate goals
• Exchange persons b/w two or more levels
• Co-optation
• Joint membership
• Diplomacy
• Mediation

10. Factors influencing a selection of distribution channel :
I.
a)
b)
c)
d)
NATURE OF THE MARKET :
Number & location of buyers
Size & frequency of purchase
Consumer/ industrial market
Buying habits & preferences
II.
a)
b)
c)
d)
e)
f)
g)
NATURE OF PRODUCT :
Size of the product [bulky/less weight]
Unit value
Perishability
Standardization
Technical nature
Age of the product [expiry date]
Product line

11. III. NATURE OF FIRM :
a) Market standing
b) Financial resources
c) Volume of output
d) Degree of control desired
e) Managerial competence
IV. NATURE OF DISTRIBUTION :
a) Availability of middlemen
b) Attitudes of middlemen
c) Services provided by middlemen
d) Sales potential
e) Cost of the channel
f) Customers & competition
g) Legal considerations

12. KINDS OF DISTRIBUTION CHANNELS :
I.
SELLING THROUGH MIDDLEMEN :
• Agency
• Through whole sellers
• Selling through retailers
II. SELLING DIRECTLY TO CUSTOMERS :
• Door to door
• Mail order
• Producers retail chains

13. ONLINE MARKETING
ADVANTAGES OF ONLINE MARKETING :
•
•
•
•
•
•
•
•
•
•
•
•
•
No time restrictions [24*7]
Convenience
Information unlimited
Fewer hassle's [difficulties]
Quicker adjustments to market conditions
Low cost
Relationship building
Audience sizing
Both small & large firms can afford it
No real limit on advertising space
Information access & retrieval is fast
Anyone at any place, any time in the world can buy or sell
Shopping can be done privately.

14. CONDUCTING ONLINE MARKETING :
• Electronic presence
• Corporate presence
• Marketing website
CHALLENGES OF ONLINE MARKETING IN INDIA :
•
•
•
•
•
Limited consumer exposure and buying
Skewed user demographic & psychographics
Security issues
Ethical concerns
Consumer back lash

15. PUBLIC & ETHICAL ISSUES IN DIRECT MARKETING :
 Irritation
 Unfairness [ different prices, different facilities for
different people ]
 Deception & fraud
 Invasion of privacy

16. RETAILING
Meaning:
Retailing includes all the activities involved in selling
goods or services directing to final consumers for personal,
non – business use.
A retailer or retail store is any business enterprise
whose sales volume comes primarily from retailing.
Any organization selling to final consumers whether it
is a manufacturer, whole seller or retailer is doing retailing.

17. MAJOR RETAILER /RETAILING STYLES / TYPES :












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Speciality store [only 1 brand] e.g: Bata
Department store - e. g: medical shops
Super market
Convenience store
Discount stores
Off price retailer
Factory outlets
Independent off-price retailers
Ware house clubs
Super stores
Combination stores
Hyper markets
Catalogue show room – e. g: jewellery, tiles, paints

18. TRENDS IN RETAILING :
I.
New retail forms and retailing :
 Super markets includes banks
 Book stores include coffee shops
 Growth of inter type competition [competition b/w store
based & non- store based retailing]
 Growth of giant retailer
 Decline of middle market retailers
 Growing investment in technology
 Global presence of major retailers – e.g.: wall mart, banks
II. Multiplex retailing – e.g.: Imax, inox, pvr, gvk

19. III. Non – fuel retailing :
Retailers can position themselves as offering one of
Four levels of service.
• Self service
• Self selection - e.g.: ATM
• Limited service - e.g.: medical shops
• Full service – e.g.: banks

20. IMPORTANT Q’S :
1. What are channel design decisions ? [p.g 410 in philip
kotler]
2. Explain the reasons for channel conflict & steps to
resolve such conflict ?
3. What is online marketing ? Explain the challenges faced
in online marketing ?
4. Explain the channel structure and participants of
channels of distribution ?
5. What is retailing ? Explain the emerging trends in
retailing? [pg 432 in philip kotler]