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Traditional Marketing Channel System and New and Emerging Marketing Channel System

The document discusses and compares traditional and new emerging marketing channel systems. The traditional system focuses on issues like promoting products, pricing impacts on distribution networks, handling different product types, evaluating and managing channel member performance, and inaccurate stock management. The new emerging system deals with managing multiple channels, choosing right partners, designing channel structures, maintaining partner relationships, and managing cannibalization across channels.

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Surbhi Sabharwal
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38 views

Traditional Marketing Channel System and New and Emerging Marketing Channel System

The document discusses and compares traditional and new emerging marketing channel systems. The traditional system focuses on issues like promoting products, pricing impacts on distribution networks, handling different product types, evaluating and managing channel member performance, and inaccurate stock management. The new emerging system deals with managing multiple channels, choosing right partners, designing channel structures, maintaining partner relationships, and managing cannibalization across channels.

Uploaded by

Surbhi Sabharwal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Traditional marketing channel system and New and

Emerging marketing channel system.

Session-1

Submitted by: Team 3


Surbhi Sabharwal (PGFA1957)
Utkarsh Padiyar(PGFA1959)
Abhishek Deva(PGFB1902)
Aditya Singh(PGFB1905)
Akansha Topani(PGFB1906)
Traditional marketing channel system

1. Promotion Issue: The distribution network also depends on whether the product requires extensive
promotion such as a direct contact between salesperson and the customer or no assistance at all.
2. Pricing Issues: The choice of pricing also affects the nature of the distribution network. Increasing the
number of channel partners increases the cost which may affect the sales of the company.
3. Product Issues : The distribution network differs on the basis of the nature of the product. It may differ
on the basis whether the product is fragile or easy to handle.
4. Evaluating Channel Member Performance: It involves continuous evaluation of partners who are
involved and eliminating those who are not meeting up the expectations.
5. Managing conflicts: Deciding on different strategies that avoid channel conflicts and maintain price
integrity and unnecessary competition among channel partners.
6. Division of tasks: The issue faced here is the priorities of partners do not necessarily align with the
vendor, so its crucial for the organization to understand what the priorities of those partners are and
assign them with a task accordingly.
7. Inaccurate stock management: Lack of digital record of inventory makes it difficult for the partners to
take decisions towards restocking.
New and Emerging marketing channel system

1. Managing Multiple Channels: Various organizations have adopted multiple channel approach which
requires them to manage each channel individually.
2. Choosing the right Channel Partner: The new and emerging distribution network requires the organization
to choose the right channel partner, which is most profitable.
3. Designing the Channel Structure: It is very important for organizations to design a right channel structure
that could help them in more efficient distribution.
4. Channel Partner relationship: Consumption patterns are changing rapidly, therefore it is very important for
organizations to maintain good relationship among all the channel partners for efficient distribution.
5. Managing Cannibalization: Multiple channel and E-commerce distribution mostly times lead to
cannibalization, it increases both the cost and the resources for the organization.

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