Geographical factor affecting to Dist. Chanel
Transcript of Geographical factor affecting to Dist. Chanel
Presented BY:
Rushabh Doshi (8)Marketing, 4th sem. (A)
Distribution Channel A distribution channel is a set of
interdependent organizations that help make a product available for use or consumption by the consumer or business user to do this.
A distribution channel is critical to large and small businesses because they use these distribution channels to meet their marketing and business objectives by providing and delivering products and/or services that generate profit and increase their customer base.
The Importance of Distribution Channel Intermediaries Are:
Wholesalers, Agents Brokers Retailers
Channel decisions directly affect other marketing decisions
The firm’s sales force and communications decisions depend on persuasion, training, motivation, and support needed by its channel partners
Success of a new product of a firm may depend on capabilities of its channel members
Distribution channel is the competitive advantage for companies like Dell and FedEx
Channels provide time, place, and ownership utility
Functions of Distribution Channel Physical distribution function Increase the efficiency of the flow of goods Reducing transactions of goods
Breaking bulk. Wholesalers and retailers customers Purchasing large Quantity Selling one to
customer
Assortments Variety of products in one location customers
can buy many different items from one seller at one time
Types of Distribution Channels Consumer Channels
Simplest & shortest channel Producer Customer
Business-to-Business Channels Producer Organisation Customer
Organisation Producer Org. Agent Customer Org
Channels for Services Producer Customer Producer Org. Agent Customer Org
Horizontal Marketing Systems Two or more companies at one level join
together to follow a new marketing opportunity
E.g.. Mc Donald’s Restaurants in Wal-Mart Stores
Multichannel Distribution Systems A single firm sets up two or more marketing
channels to reach one or more customer segments
Hybrid Marketing Channel
Categories of Distribution System Stationary Facilities
Storage or transportation of goods Transportation Network
Rail Water Pipeline Air Highway
Location Place which can most utilize stationary and
transportation facilities
Geographical Factor
Facility Location Warehouse Godown Depot Plant
Factors Affecting Facility Location Physical Factors Topological Factors Climatic Factors
Factors Affecting Location Decision Internal Factors
Technology Used Capacity of Location Financial Position Work Force
External Factors Economic Conditions Social Conditions Political Conditions
Location Decision Affects the Organization's: Efficiency Effectiveness Productivity Profitability
Reasons for Facility Location Study
New facility to be established
Setting up facility at new site due to poor old site location
Need for additional location for business expansion
Abiding to the Industrial Policy of country
Outweighed advantages of the location
New social, economic or political factors affecting location
Poor location Selection Consequences
Higher costs Higher investment Difficult marketing Difficult transportation Frustrated employees Dissatisfied customers Interruptions in production Abnormal wastages & delays No advantage of geographical
specialization
Difficulties in Site Change Economic, Political & Social Reasons
Cost , profit, labour, power & transportation availability
Pursuance of policy of decentralization
Security considerations
Natural calamities
Pollution issues