PowerPoint Presentation by Sixit Bhatta

PowerPoint Presentation by Sixit Bhatta

Marketing ChannelsMarketing Channels

Session-8

Just Have a LookJust Have a Look

Why ChannelWhy Channel

ProducerProducer ConsumerConsumer

Advertisements, commissions, Bonuses, Channel Discounts etc. account for distribution channel costs, which is passed on to consumers.

Advertisements, commissions, Bonuses, Channel Discounts etc. account for distribution channel costs, which is passed on to consumers.

Channel DevelopmentChannel Development

Role of Marketing ChannelsRole of Marketing Channels

Producers Lack Financial Resources and Expertise to deal with Consumers.

Direct Marketing would not be possible

More prudent to focus on one’s core business rather than distribution.

Consumer and Industrial ChannelConsumer and Industrial Channel

Case Discussion- Distribution of Telecom ServicesCase Discussion- Distribution of Telecom Services

Channel Design DecisionsChannel Design Decisions

• Analyzing Customer Needs– Lot size, – service level output, – product variety.

• Establishing Channel Objectives and Constraints.– Objectives may vary with conditions.– Different products require different

distribution channels.

Channel Design Decision.Channel Design Decision.

• Identifying Major Channel Alternatives.– Type of Intermediaries– Number of Intermediaries.

• Exclusive distribution.• Selective distribution• Intensive distribution

– Terms and Responsibilities of Channel Members• Price policy, sales conditions, territorial rights, Service

Responsibilities

– Evaluating Alternatives• Economic Criteria, • Control

Channel ManagementChannel Management

Selecting Channel Members– Experience.– Growth.– Profitability.– Management.– Resources– Operation Area

Channel ManagementChannel Management

• Training and Motivation– Skill Development.

– Commission– Bonuses– Shared Advertisement Expenses.

• Negative Sanctions– Penalty.– Termination

• Evaluating Channels– Evaluate against performance standards,

• Modifying Distribution Channel– eTicketing etc.

Channel ConflictChannel Conflict

Types of Conflict• Vertical channel conflict• Horizontal channel conflict• Multichannel conflict

Causes of Channel Conflict• Goal incompatibility• Unclear roles and rights

– Differences in perception

Reducing Inefficiencies of Distribution ChannelReducing Inefficiencies of Distribution ChannelHow do you think we can reduce the

distribution channel leakage?Technological Intervention?Educating the Consumers?Direct Marketing?Any other Innovation?

ExcersiceExcersice

Nepali Masuara and Gundruk in Kathmandu.

Solar Power Table Lamps. Non Stick Kitchenware. Fresh Farm Milk.