2. INTRODUCTION
MEANING
DEFINITION
CHARACTERISTICS
NEED AND IMPORTANCE
TYPES
Consumer Marketing Channels
Industrial Marketing Channels
Marketing Flow in Marketing Channels
INTERMEDIARIES
CHANNEL DESIGN DECISION
CONCLUSION
3. The channel of distribution is the
pathway taken by goods and services as
they flow from the point of production
to the point of consumption and includes
a sequence of marketing agencies.
4. The word ‘channel’ has its origin to
the French word used for ‘canal'. thus
channel is a route through which the
goods passes from one end to another.
5. According to William.j.Stanton,’A
channel of distribution for a product is
the route taken by the title to the goods
as they move from the producer to the
ultimate consumers or industrial users.’
6. ROUTE OR PATHWAY
FLOW
COMPOSITION
FUNCTION
REMUNERATION
7. Bridge between the producers and the
final consumers or industrial users.
Helps to move the goods from one place to
another.
Bring the goods to the final consumers or
users.
Help in the transfer of title to goods.
Goods available to the consumers in
convenient unit or size,package,etc.
18. The channels of distribution includes
manufacturers or producers,
middlemen and the final consumers
or users. but it refers primarily to the
intermediaries or middlemen
between the manufacturers or
producers and the consumers or users.
19. Middlemen or intermediaries are the
connecting links between the
manufacturers or producers and the
final consumers or users.
20. AGENT MIDDLEMEN OF
MERCANTILE AGENTS
MERCHANT MIDDLEMEN
21. TO PROVIDE THE CONNECTING LINK BETWEEN
THE MANUFACTURERS AND THE FINAL
CONSUMER.
THEY ADD PLACE,TIME,AND POSSESSION
UTILITIES TO GOODS.
THEY REDUCES THE MARKETING ACTIVITIES
TO AN OPTIMUM NUMBERS.
THEY UNDERTAKE THE FUNCTIONS OF
STORAGE AND TRANSPORTATION OF GOODS
ON BEHALF OF THE PRODUCER-SELLERS AND
THE BUYERS.
THEY ASSUME MARKETING RISKS ALSO.
22. THE TYPE AND EXTENT OF MARKET SERVED BY THE
INTERMEDIARY.
THE PRODUCT LINE IN WHICH THE INTERMEDIARY
SPECIALISES.
THE FINANCIAL POSITION OF THE INTERMEDIARY.
THE MARKET REPUTATION ENJOYED BY THE
INTERMEDIARY.
THE SELLING POLICIES OF THE INTERMEDIARY
COMPATIABLE WITH THOSE OF THE PRODUCER.
THE CONTINUED RELATIONSHIP FOR A LONG TIME
BETWEEN THE PRODUCER AND THE INTERMEDIARY.
THE SALES ORGANISATION,i.e,THE UTILITY AND
EFFICIENCY OF THE SALES FORCE OF THE INTERMEDIARY.
OTHER FACILITIES,SUCH AS STORAGE
FACILITIES,DELEVARY VANS,Etc.POSSESSED BY THE
INTERMEDIARY.
23. IT REFERS TO DECISION-MAKING
IN REGARD TO TYPES OF
DISTRIBUTION CHANNELS OR
TRADE CHANNELS TO BE
ADOPTED BY A CONCERN FOR
THE MARKETING OF ITS
PRODUCTS.
24. CHANNEL DECISIONS HAVE A GREAT IMPACT
ON DECISION-MAKING IN ALL AREAS OF
MARKETING.
TO DETERMINE THE SIZE OF THE SALES
FORCE,THE TYPE OF SALES FORCE,THE SIZE
AND THE COMPLEXITY OF THE MARKETING
DEPARTMENT AND THE COST OF MARKETING.
IT INFLUENCE PRICING
DECISION,ADVERTISING DECISION.
A FIRM’S CHANNEL DECISIONS INVOLVE
LONG-TERM COMMITMENT TO OTHER FIRMS.
25. PRODUCT FACTORS OR CHARACTERISTICS.
CUSTOMER CHARACTERISTICS.
MIDDLEMEN CHARACTERISTICS.
SUPPLY CHARASTERISTICS.
DISTRIBUTION POLICIES OF THE PRODUCER
OR MANUFACTURER.
CHANNELS OF RIVALS.
COMPANY CHARACTERISTICS.
ECONOMIC CONDITIONS AND LAWS OF THE
COUNTRY.
COSTS OF THE MARKETING CHANNELS.
26. Channels of distribution for a product begins with
the producer and ends with the ultimate
consumer.
The importance of channels of distribution is clear
from the role they play and the function they
perform in the marketing of goods. And finally
middlemen plays a important role in channels
of distribution.
