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PowerPoint Presentation by Sixit Bhatta
PowerPoint Presentation by Sixit Bhatta
Marketing ChannelsMarketing Channels
Session-8
Why ChannelWhy Channel
ProducerProducer ConsumerConsumer
Advertisements, commissions, Bonuses, Channel Discounts etc. account for distribution channel costs, which is passed on to consumers.
Advertisements, commissions, Bonuses, Channel Discounts etc. account for distribution channel costs, which is passed on to consumers.
Role of Marketing ChannelsRole of Marketing Channels
Producers Lack Financial Resources and Expertise to deal with Consumers.
Direct Marketing would not be possible
More prudent to focus on one’s core business rather than distribution.
Channel Design DecisionsChannel Design Decisions
• Analyzing Customer Needs– Lot size, – service level output, – product variety.
• Establishing Channel Objectives and Constraints.– Objectives may vary with conditions.– Different products require different
distribution channels.
Channel Design Decision.Channel Design Decision.
• Identifying Major Channel Alternatives.– Type of Intermediaries– Number of Intermediaries.
• Exclusive distribution.• Selective distribution• Intensive distribution
– Terms and Responsibilities of Channel Members• Price policy, sales conditions, territorial rights, Service
Responsibilities
– Evaluating Alternatives• Economic Criteria, • Control
Channel ManagementChannel Management
Selecting Channel Members– Experience.– Growth.– Profitability.– Management.– Resources– Operation Area
Channel ManagementChannel Management
• Training and Motivation– Skill Development.
– Commission– Bonuses– Shared Advertisement Expenses.
• Negative Sanctions– Penalty.– Termination
• Evaluating Channels– Evaluate against performance standards,
• Modifying Distribution Channel– eTicketing etc.
Channel ConflictChannel Conflict
Types of Conflict• Vertical channel conflict• Horizontal channel conflict• Multichannel conflict
Causes of Channel Conflict• Goal incompatibility• Unclear roles and rights
– Differences in perception
Reducing Inefficiencies of Distribution ChannelReducing Inefficiencies of Distribution ChannelHow do you think we can reduce the
distribution channel leakage?Technological Intervention?Educating the Consumers?Direct Marketing?Any other Innovation?
ExcersiceExcersice
Nepali Masuara and Gundruk in Kathmandu.
Solar Power Table Lamps. Non Stick Kitchenware. Fresh Farm Milk.