Marketing Channels

Lecture 1
Introduction
Hamendra Dangi
hkdangi@fms.edu
9968316938
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Session Break Up

Out line of Sessions

Internal Assessment
Text Book
Introduction to Marketing Channel

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Course Outline

Marketing Channel: Structure and Function

Design of marketing channel
Selecting the marketing channel
Behavioral process in marketing channel
Motivation the channel member
Product issues in Channel management
Pricing Issues in Channel management
Promotion through Channel management
Logistics and Channel management
Evaluating Channel member performance
Marketing Channel for service
International Channel perspective
Strategic Alliances in marketing channel
Legal constraints on marketing channel polices

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Session Break Up
Imparting Instruction- 50-60 min
Case Study (One Group in each lecture )
( 20 Minutes )
Case Study presentation -10 minutes

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Text Book
Marketing Channel : Coughlon ,Stern, Ansasry
Marketing Channel : Rosen bloom

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INTERNAL ASSESMNET
Submission of synopsis After two weeks ( 2 marks )
Minor test : 9th September 2014 ( 10 Marks )
Mid term review One week after examination ( 3
Marks )
Project Viva and submission Two weeks before
examination (5 Marks)
Class Activity ( Group wise) 5 marks
Attendance : 5 Marks

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Topics of projects

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Introduction
Distribution (or "Place") is the fourth
traditional element of the marketing mix.
The other three are Product, Price and
Promotion.
Distribution can also be used as promotion
tool

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Marketing Channel Definition

A Marketing Channel is defined as set of
interdependent organizations involved in
the process of making product or service
available for use of consumption.

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Question for Discussion

Why do we need marketing channel ?

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Demand Side Factor

a) Facilitation of Search
b) Adjustment of assortment discrepancy
Supply Side factor
a) Routinization of transaction
b) Reduction in number of contacts
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Flows in Marketing Channels

Producers

Physical

Physical

Physical

Possession

Possession

Possession

Ownership

Ownership

Ownership

Promotion

Promotion

Promotion

Negotiation

Negotiation

Negotiation
Financing

Wholesalers

Financing

Financing

Consumers
Industrial
and
Household

Risking

Risking

Risking

Ordering

Ordering

Ordering

Payment

Payment

Payment

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Commercial channel Subsystem

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Transfers Between Channels:

Marketing Flows

Transfer of goods (Physical Ownership)

Promotion
Negotiation of Price Quantities
Financing (Credit etc)
Risk transfer (Movement / payment)
Ordering
Payments

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Number of Intermediaries at Each Level

Outlet

Use as many
outlets as possible
Outlet

Outlet

Outlet

Intensive
Distributi
on
Outlet
Outlet

Use as few outlets

(intermediaries) as
possible
Exclusive
Distributi
on
Intermediaries

Not all available

intermediaries are
Selectiveused
Distributio
Intermediaries
Intermediaries n
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McGraw-Hill Companies, Inc. 2002

Consider these three commercials

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Self Assessment
1.
2.
3.
4.
5.
6.
7.
8.

Marketing channel increases the cost of the products

Intermediaries include wholesalers, retailers and ,
manufactures
C&FA are Indian version Of Company depots
Breaking a homogenous supply into smaller and
smaller lot is termed as allocation
Marketing channel are only useful for products
Distribution Management and logistics are synonyms
CFA stands for Carry and Forward Agents
Breaking a homogenous supply into smaller and
smaller lot is termed as sorting out

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