Scribd
Upload
27 views

Channel Selection

This document discusses channel management and selection of distribution channels. It provides information on different types of channels including direct marketing channels, indirect marketing channels, wholesalers, retailers, and distributors. Some key points covered include: - Channel management is the process of directing marketing activity through intermediaries in the distribution channel. - Indirect marketing channels involve multiple levels of intermediaries between producers and consumers, while direct channels have no intermediaries. - Wholesalers are classified as merchant wholesalers, agent wholesalers, and manufacturers' sales branches. They are selected based on their ability to serve suppliers, retailers, and business users. - Retailing involves all activities related to selling directly

Uploaded by

jency alexanderia
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
27 views

Channel Selection

This document discusses channel management and selection of distribution channels. It provides information on different types of channels including direct marketing channels, indirect marketing channels, wholesalers, retailers, and distributors. Some key points covered include: - Channel management is the process of directing marketing activity through intermediaries in the distribution channel. - Indirect marketing channels involve multiple levels of intermediaries between producers and consumers, while direct channels have no intermediaries. - Wholesalers are classified as merchant wholesalers, agent wholesalers, and manufacturers' sales branches. They are selected based on their ability to serve suppliers, retailers, and business users. - Retailing involves all activities related to selling directly

Uploaded by

jency alexanderia
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
You are on page 1/ 20

Selection of

Channels

A Sales & Distribution Presentation


Channel Management

Channel Management is a process by which a producer or supplier directs


marketing activity by involving and motivating the entities comprising its
channel of distribution

Various Channels are: Wholesalers, Retailers, Distributors & Agents


Market Intermediaries

Middlemen

Marketing Intermediaries
Agent or Broker
Wholesaler
Retailer
Distributor
Value-added Resellers
Merchants
Facilitating Agents
Need for
Distribution Channels
Types of Channels

 Direct Marketing Channel


 Indirect Marketing Channel
Direct Marketing Channel

Direct Marketing Channel (or Zero Level)


This type of channel has no intermediaries. In this distribution system, the goods
go from the producer directly to the consumer, e.g., Amway, Eureka Forbes.
Indirect Marketing Channel

Level- 4

Level- 3
Consume
rs
Level- 2 Consumers Retailer
Level- 1
Consumers Retailer Wholesalers

Consumers Retailer Wholesalers Distributor

Retailer Wholesalers Distributor Agent

Producers
Channel Strategy Decisions

Market Factors

Channel Selection Criteria


 Customer Preference
 Organizational Customers
 Geography

Competitors

Nature & Availability of Intermediaries

Product Factors
 Life Cycle
 Selling Price/Unit
 Perishability
 Size & Weight
 Consumer Perceptions
Key Issues in Determining Channel Requirement

While a manufacturer faces an agenda of issues related to finance, marketing and industrial
relations, attention is focused on selected topics that directly impact marketing channel
arrangements. The key issues related to this are:
 Product proliferation and dynamics; and
 Total-quality initiatives.
These two issues are significant drives for a typical firm in determining how channel
requirements will be delineated.
Manufacturing Strategy
Wholesalers

Wholesale trade is defined as “all establishments or places of business primarily


engaged in selling merchandise to retailers; to industrial, commercial,
institutional or professional users or to other wholesalers; or acting as agent in
buying merchandise for or selling merchandise to such persons or companies”.

1. Merchant Wholesalers
2. Agent Wholesalers
3. Manufacturers’ Sales branches and offices
Merchant Wholesalers

Merchant Wholesalers
Wholesalers  Full Function or Service Wholesalers
 Limited Function Wholesalers
 Cash & Carry Wholesalers
 Drop Shippers
 Truck Wholesalers
 Mail Order Wholesalers
 Prod. & Retail Cooperative
Agent Wholesalers

Agent Wholesalers
 Manufacturers’ Agent
Wholesalers

 Brokers
 Commission Merchant
 Selling Agents
 Commercial Auction Companies

Manufacturer’s Sales Branches and Sales Offices


Selecting Wholesalers

A wholesaler is generally selected on the basis of his performance


evaluation. Before selecting wholesalers, manufacturers’ analyze a
wholesaler on the basis of the following questions:
 How can a wholesaler serve a supplier?
 How can a wholesaler serve a retailer?
 How can a wholesaler serve business users?
Strategic Management of Wholesalers

Strategic Management of Wholesalers


Wholesalers

 Effectiveness
 Profitability
 Niche Marketing
 Proprietary Brand
 New Technology
Introduction to Retailing

Retailing
It include all activities incidental to selling to ultimate consumer.

According to ‘William.J.Stanton’, “A retailer or a retail store is a business


enterprise which sells primarily to ultimate consumers for non business use.”
Function of Retailing

Collect product assortment


and offer them for sale

Product Information
Retailers
Mark prices and pay for
goods

Conclude Transaction with final


consumer
Relation Between Retailers & Suppliers

Selling goods or services Selling goods or services


for use of retailer for reselling by retailer
Wheel of Retailing

Innovation

Vulnerability Trading Up
Thank You

You might also like