distribution management final ppt for presentation

7/31/2019 Distribution Management Final Ppt for Presentation

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Topic:-Discuss the Role andfunction of

intermediaries in channelmanagement.Discuss with an industry example.

By:-


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Roles & Functions of

Intermediaries..

Roles:-

ExchangeFacilitators

Bulk Breakers.


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Example:- Service Industry

Service industry also termed as tertiarysector of industry, having 15subcategories.

Two distinct services marketers areinvolved in delivering service throughintermediaries: -The serviceprincipal - is the entity that creates theservice concept.

-The service deliverer - is the entitythat interacts with the customer in the

actual execution of the service.


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DIRECT OR COMPANY

OWNED CHANNELS

Benefits: Complete control over outlets

Allows the company to expand or

contract sites without being bound bycontractual agreements

Company owns the customerrelationship

Disadvantages:

Financial risk

Not aware of all the markets 4


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TYPES OF INTERMEDIARIES

Franchising

Agents and Brokers

Electronic channels

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FRANCHISING

For Franchisers

Benefits:

Leveraged business format for greater expansion and revenues

Consistency in outlets

Knowledge of local markets Shared financial risk and more working capital

Challenges:

Difficulty in maintaining and motivating franchisees Highly publicized disputes and conflict

Inconsistent quality

Control of customer relationship by intermediary

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For FranchiseesBenefits: An established business format National or regional brand marketing Minimized risk of starting a business

Challenges: Encroachment Disappointing profits and revenues Lack of perceived control over operations High fees

FRANCHISING [contd..]

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AGENTS AND BROKERS

Benefits: Reduced selling and distribution costs Intermediary's possession of special skills and

knowledge Wide representation Knowledge of local markets Customer choice

Challenges: Loss of control over pricing Representation of multiple service principals

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ELECTRONIC CHANNELS

Benefits: Consistent delivery for

standardized services Low cost

Customer convenience Wide distribution Customer choice and

ability to customize Quick customer

feedback

Challenges: Price competition Inability to customize

with highlystandardized services

Lack of consistency dueto customerinvolvement

Changes in consumerbehavior

Security concerns Completion from

widening geographies


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Channel conflict over objectives& performance

Difficulty controlling quality &consistency across outlets

Tension between empowerment& control

Channel ambiguity

COMMON ISSUES INVOLVINGINTERMEDIARIES

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Control strategies

Empowerment strategies

Partnering strategies

STRATEGIES FOR EFFECTIVE SERVICEDELIVERY THROUGH INTERMEDIARIES

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distribution management final ppt for presentation

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