marktng group 2 ppt

8/3/2019 Marktng Group 2 Ppt

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Distribution Channeland

Logistics Management

Group - 2


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Submitted by

Sambhaji Madhavi (Roll No 70)

Pramod Kamble (Roll No 91)

Pawan Shukla (Roll No

101) Rajesh Chaugule (Roll No 111)

Sagar Dorge (Roll No 121)


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Distribution Channels

A set of interdependent organizations

(intermediaries) involved in the process of

making a product or service available for use

or consumption.

Channel decisions

affect other marketing decisions

involve long-term commitments


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Why Intermediates are required

Intermediaries are specialists in selling. They

have the contacts, experience and scale of

operation which means that greater sales can

be achieved than if the producing business

tried run a sales operation itself.


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Role of Intermediaries

Greater efficiency in making goods available to

target markets

Intermediaries provide Contacts

Experience

Specialization

Scale of operation

Match supply and demand.


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ChannelFunctions

Information

Promotion

Contact

Negotiation

Matching

Physical Distribution

Financing

Risk taking


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Channel Levels

Manufacturer

Wholesaler

Retailer

Consumerother channel is direct channel in which producers sellsdiretly to consumers.

examples :- telemarketing


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Channel Behavior and Conflict

The channel will be most effective when:

each member is assigned tasks it can do best.

all members co-operate to attain overall channel goals andsatisfy the target market.

Focus on individual goals leads to conflict

Horizontal Conflict occurs among firms at the same level ofthe channel.

Vertical Conflict occurs between different levels of thesame channel.


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Vertical Marketing Systems

Corporate

common ownership at different channel levels

Contractual

contractual agreement among channel members

Administered

leadership assumed by dominant members


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Difference between conventional and

vertical marketing system


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Channel Management Decisions

Selecting

Motivating

Evaluating

FEEDBA

CK


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Logistics

Involves entire supply chain

Increasing importance of logistics

effective logistics is becoming a key to winningand keeping customers.

logistics is a major cost element for mostcompanies.

the explosion in product variety has created aneed for improved logistics management.

information technology has created opportunitiesfor major gains in distribution efficiency.


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Goals of Logistics system

Provide a Targeted Level of CustomerService at the Least Cost.

Maximize Profits, Not Sales.

Higher Distribution Costs/Higher Customer Service

Levels

Lower Distribution Costs/Lower Customer Service

Levels


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Logistics Functions

Order Processing

Warehousing

Inventory Management Transportation

T t ti M d


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Transportation ModesRail

Nations largest carrier, cost-effective

for shipping bulk products, piggyback

Truck

Flexible in routing & time schedules, efficientfor short-hauls of high value goods

WaterLow cost for shipping bulky, low-value

goods, slowest form

Pipeline

Ship petroleum, natural gas, and chemicalsfrom sources to markets

Air

High cost, ideal when speed is needed or toship high-value, low-bulk items


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Integrated Logistics ManagementConcept Recognizes that Providing Better customer

Service and Trimming Distribution Costs RequiresTeamwork, Both Inside the Company and Among Allthe Marketing Channel Organizations.

Cross-Functional Teamwork insidethe Company

Building Channel Partnerships

Third-Party Logistics

marktng group 2 ppt

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