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Channels
PRESENTED BY,
Deepak Tyagi
Shikha Gupta
CONTENTS
Definition
2. Sorting:-
Channel members eliminate the
differences in the collection of goods &
services offered by company
CONTD.
3. Making transactions routine:-
Transactions involve ordering of goods or
services, fulfilling orders & paying for
goods & services purchased.
i.e., Manufacture-Wholesaler-Retailer-
Customer
Help in making transactions routine
through standardizations & automations
4. Contractual efficiency:-
Channel Intermediaries have to optimize
the number of exchange relationships
required to complete a transaction.
DESIGNING MARKETING
CHANNELS
Dimensions to choose a channel design:
• The channel length – Number of
intermediaries between the producer
and customers
One-level channel
Retailers
Manufactures
Consumers
Two-level channel
Wholesalers Retailers
Three-level channel
Intensive distribution
Producers of products stock their goods in as
many outlets as possible as possible by
considering time & place utility.
Exclusive distribution
Producers of some products limit the number of
intermediaries handling their product to deliver
maximum service quality to customers, try to
develop a superior brand image for their product.
CONTD.
Selective distribution
It is adopted when the manufacturer
lacks the resources to adequately
influences the policies of all the
intermediaries who can carry a
particular product.