Channel Distribution Management

To : Prof. Devang Patel

By : Nikita Pandaya Vikram Kannad Chirag Shah Harsha Silan Zamir Khan

Flow of Presentation
Introduction: Value Networking

Marketing Mix and Distribution

Role of channel distribution Channel level

Channel flow
Channel design decision Sales force and channel management

Channel conflict
Logistic function Factors Influencing Channel Distribution

Introduction
Before channel distribution marketer focus Value

networking.
Three type of value network channels.

Sale value network channel 2. Delivery value network channel 3. Service value network channel
1.

Quality of value network

Distribution channel
The path through which goods and services travel

from the vendor to the consumer or payments for those products travel from the consumer to the vendor Each intermediary receives the item at one pricing point and movies it to the next higher pricing point until it reaches the final buyer.

Pattern/intensity of Distribution
Intensive Distribution
Selective Distribution Exclusive Distribution

Marketing mix and distribution channels

Marketing mix includes Place, Product, Price, and

Promotion. These 4Ps are most important in the distribution of the products in the markets through different channels to the final customer or users. Place , price and promotion of the products are important when manufacturer is providing products to the different intermediaries.
Marketer have to follow different strategies for selling

products to the final users.

Role of Distribution Channel

The main role of the channel distributers is to

provide goods to the consumers in the similar manner as manufacturer are providing to the concern distributers

Function of Channel Distribution

Information

Communication
Negotiation Ordering

Financing
Risk taking Physical distribution

Payment
Transfer

Channel Levels of Consumer good

There are different 4 types of channel level through

them the products are passing and reach to the consumers. 0-level channels

MANUFACTURER
Service provider

customer

1-level channel
MANUFACTURER
MARUTI SUZUKI

MANUFACTURER
SONY

DEALER
MANAN AUTOLINK

DISTRIBUTOR
VIJAY SALES

CUSTOMER

CUSTOMER

2-Level Channels
MANUFACTURER MANUFACTURER

APPLE
DISTRIBUTOR

AMUL

DISTRIBUTOR NARANPURA VISHRAM BAUG

RAMESH CORPORATION
RETAILER

RETAILER VIJAY CORNER

VIJAY SALES

CONSUMER

CONSUMER

3-Level Channels
MANUFACTURER HINDUSTAN UNILEVER LTD. WHOLESALER RETAILER

CONSUMER

Flow of channels
Physical flow:
Suppliers Transporter s, warehouse Manufactur er Transporter s, warehouse

Customers

Transporter s, warehouse

Dealers

Payment flow:
Suppliers BANK Manufacturer BANK

Customers

BANK

Dealers

Information flow:
Transporters , bank, warehouse

Suppliers

Transporters , bank, warehouse

Manufactur er

Customers

Transporters , bank, warehouse

Dealers

 Title flow: brand name, value

Suppliers Manufactur er Dealers Customers

RISK IS TRANSFERRING

Promotion flow: advertising to customer

Suppliers Advertising Agency Manufactur er Advertising Agency

Customers

Advertising Agency

Dealers

B2B channel Distribution

Manufacturer

Industrial distributors

Manufacturers representative

Manufacturers sales branch

Consumer

Channel design decision

Analyzing consumer service needs Setting channel objectives and constraints

Identifying major alternatives

Evaluating the major alternatives

Sales Force and Channel Management

SELECTING TRAINING

MOTIVATING EVALUATING

Channel conflict
Channel conflict is conflict and mismanagement

between intermediaries which are present between manufacturer and consumer. Two type of channel conflict: 1. Vertical channel conflict 2. Horizontal channel conflict

Logistic Management
Order processing

Warehousing & Inventory

Transportation

Order Processing of Manan Autolink

Sanand Branch Dholaka Branch Gurukul Branch Chandkkheda branch

Head office (Vijay cross road)

Maruti Warehouse

Manesar manufacture unit

Warehousing & inventory

The Manan Autolink has a warehouse in the

Pirana, Kamod, at Ahmedabad. They are keeping 400 cars as a stock. First date of the every month they are ordering the cars as per the target. Maruti is dispatching cars on the 1st and 16th date of every month (1/2 on each date of the order) to the Manan Autolink. As per the requisition of customer, Manan AutoLink distributes the cars to other branches.

Factors influencing Channel Distribution

Parameters Short Channel Long Channel

Market Factors

Business user Geographically concentration External technical knowledge Large orders Perishable Complex Expensive

Consumers Geographically diverse Little technical knowledge Small order Durable Durable Standardized Inexpensive

Product factor

Cont.
Parameters Short Channel Long Channel

Producer factors

Broad product Limited product line

Channel control important Channel control not important

Competitive factors

Manufacturing feels satisfied with marketing intermediates performance in promoting product

Manufacturing feels dissatisfied with marketing intermediaries performance in promoting product