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Designing the

Marketing
Channels
Submitted to:-
Prof. Ruchi Shah
Submitted by:-
Arpit jain
Gaurav Arora
Kumar Shivanand
Swati Sharma
Tanu Srivastava
Vaibhav Priyank
Channel strategy
defined
Decisions involving the
development of new marketing
channels either where none had
previously existed or to the
modification of existing channels.
Channel strategy
and designing
 Search for Sustainable Competitive
marketing
Advantage. channels
 Growing Power system
of Retailers in Marketing
Channel
 The Need to Reduce Distribution Costs

 The Increased Role and Power of


Technology
Continue…………..
Evaluating the variables affecting
channels structures
Choosing the “best” channel
structure
Selecting the channel members.
Paradigm of channel
design decision
Recognizing the need for a channel
design decision.
Setting and coordinating distribution
objectives.
Specifying the distribution tasks.
Developing possible alternative channels
structure .
Gap analysis
Definition:-
To identify and correct gaps
between desired levels and actual levels of
performance.

The difference between optimal and actual


channels
 Zero-based channel
Meets service output demands
Sources of Gaps

Environmental Bounds
Local legal constraints
Local physical, retailing infrastructure

Managerial Bounds
Constraints due to lack of knowledge
Companies policy and rules
Types of gaps
Demand sides gaps
Sod>sos
Supply side gap
Sos>sod
Closing channel

Demand Supply
Side:- Side:-

1. Offer multiple, 1. Changing roles


tiered service of current
output levels to channel members
appeal to different
segments 2. Investing in
2. Expand or new distribution
Recognizing the
need for a channel
design
 Developing a new product or product line

 Aiming at new target market


 Making major change in component of market mix.
 Establishing a new firm
Adapting to changing intermediary policies
Dealing with changes in availability of intermediates
Specifying the distribution
tasks
Made after the distribution objectives
are set.

Job of channel manager.

Precisely stated tasks.


Choosing The Best
Channel Structure
“Characteristics of Goods & Parallel
Systems”
 Approach:-

Financial Approach

Transaction Cost Analysis Approach

Management Science Approaches

Judgmental-Heuristic Approach
Thank
you……..!!!!!

Any
Questions…???

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