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By Pallavi ChoudhariRutika Dindorkar

Amol Dhaigude

Dinesh Chavan

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Def , Nature, Scope, Function. Channel Design Decisions. Channel Management Decisions.

Channel Dynamics.

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A marketing channel is an organized network ofagencies and institutions which , in combinationperform all the activities required to link producerswith users to accomplish marketing task.

Interdependent organizations involved in the processof making a product available for use.

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Marketing Channel: system of marketinginstitutions that promotes the physical flow ofgoods and services, along with ownership title,from producers to consumer or business user;

also called a distribution channel.

The network of partners in a value chain thatcooperate to bring products from producers to

ultimate consumers.

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Physical Flow Payment Flow

Information Flow Promotion Flow Flow of Ownership

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Channels provide the means by which thefirm moves the goods and services itproduces to ultimate users Facilitate the exchange process by cutting the

number of contacts necessary

Adjust for discrepancies in the marketsassortment of goods and services via sorting

Standardize exchange transactions

Facilitate searches by both buyers and sellers

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Channel choices affect other decisions inthe marketing mix Pricing, Marketing communications

A strong distribution system can be acompetitive advantage

Channel decisions involve long-termcommitments to other firms

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Consumergoods

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Business goodsservices

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Agent / Brokers Wholesalers Retailers

Value added services

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Information Promotion Contact Matching Negotiation Physical Distribution Financing Risk taking

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Push or Pull StrategyAnalyzing Customer Needs Establishing Channel Objectives

Identifying Major Channel Alternatives Evaluating Major Channel Alternatives

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Selecting Channel MembersTraining Channel Members Motivating Channel Members

Coercive PowerReward Power Legitimate Power Expert PowerReferent Power

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Evaluating Channel Members

Modifying Channel Arrangements

1. IntroductoryPCs hobbyist storesDesigner apparel:Boutique

4. DeclinePCs Mail OrdersDesigner apparel:- Off-

price Stores

2. Growing

PCs :- Specialty RetailersDesigner apparelBetter Dept. stores

3. Mature

PCs : Mass merchandisersDesigner apparel:- Mass

merchandisers

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Conflict is a process that begins whenone party perceives that another party hasnegatively affected, or is about tonegatively affect, something that the firstparty cares about

Thomas K.W.

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Vertical level conflict

Horizontal level conflict

Multi- channel level conflict

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Goal incompatibility

Role ambiguity

Difference in perception of market

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Communication Dealers council Subordinate goals

Motivating Reward power Coercive power

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Distribution is highly important Especially in consumer products More so in countries such as ours

Managing channels is part of asalespersons job Conflict must never be allowed to get out

of hand