DISTRIBUTION AND CHANNEL

MANAGEMENT;
INTRODUCTION TO ADVERTISING
SUBMITTED TO :
PROF. SHAHNAWAZ ABIDI

SUBMITTED BY:
A.S. FARDEEN,
ALIM KHAN,
ALI HAIDER &
ALIYA HAIDER

DISTRIBUTION
DISTRIBUTIO
N FUNCTION
The
major
purpose
of
marketing is to satisfy
human needs by delivering
products of various types to
buyers when and where
they want the demand at a
reasonable cost.
The when and where is
the function of Distribution

DISTRIBUTION CHANNEL
set
of The use of intermediaries
results from their greater
interdependent
efficiency in making goods
organizations(inter
mediaries) involved available to target markets.
in the process of Offer the firm more than it
making a product can achieve on it sown
or service available through the intermediaries:
for
use
or Contacts,
Experience,
consumption by the Specialization,
Scale
of
consumer
or operation. Purpose: match
supply from producers to
business user..
demand from consumers.

DISTRIBUTION CHANNELS
FUNCTIONS

TYPICAL CHANNELS OF
DISTRIBUTION

DISTRIBUTION AS A KEY FACTOR

FOR COMPETITION.
THE THREE PHASES OF
CHANNEL OPTIMIZATION
Current

DISTRIBUTION

channel and partner evaluation: Unbiased

evaluation of your companys current distribution
channels and partners, their effectiveness in reaching
customers, and ability to differentiate your organization
from the competition
New partner evaluation and selection: Systematic
identification of high-growth opportunities within a
market or geographic region; selection of appropriate
partners to take advantage of those growth opportunities
Partner managing and monitering: Assessment of
partners performance; development of sales support
and communication materials; planning for partner
conflict resolution

ADVANTAGES OF DISTRIBUTION
o Reduce the duration of outages
Improve the speed and accuracy of outage predictions.
Reduce crew patrol and drive times through improved outage locating.
Improve theoperational efficiency
Determine the crew resources necessary to achieve restoration objectives.
Effectively utilize resources between operating regions.
Determine when best to schedule mutual aid crews.
Increased customer satisfaction
A DMS incorporates IVR and other mobile technologies, through which there is

an improved outage communications for customer calls.

Provide customers with more accurate estimated restoration times.
Improve service reliability by tracking all customers affected by an outage,
determining electrical configurations of every device on every feeder, and
compiling details about each restoration process.
Distributionis therefore thekeytocompetingin the markets and Success
ultimately depends upon the effectiveness and reach of its go-to-market
strategy.
Distribution channel optimization is therefore a critical ingredient to sustaining
growth through a rigorous customer focus.

DISTRIBUTOR AS DIFFERENTIATOR
high-performance businesses (i.e., the 10 percent

that outpace competitors regardless of economic

conditions) excel in the development of
meaningful customer insights and practical ways
to put those insights into action. They understand
what their customers want, and they know how to
deliver solutions that customers will buy.
An unwritten, but nonetheless significant,
extension of this idea is that they not only know
what customers will buy, but where and how they
want to buy. In short, no company is successful for
its insights alone. Success ultimately depends
upon the effectiveness and reach of its go-tomarket strategy. Distribution channel optimization
is therefore a critical ingredient to sustaining

At their most basic level, distribution partners enable suppliers to deliver

goods or services to end users, and distributors reach significantly

influences the extent to which suppliers can engage with customers. On a
more meaningful level, distribution partners provide customer service in
areas where suppliers cannot or do not (e.g., financing, insurance,
training, maintenance, repairs). Taken together, the two deliver an
enhanced customer experience. If managed properly, distributors provide
access to customers that can determine a suppliers reach, revenue, and
long-term growth potential.
Companies with productive channel relationships stand to increase sales,
reduce operating costs, and improve customer reach. Importantly,
effective distribution channel management delivers benefits to all players
in the value chain, often by increasing the size of the market or capturing
a greater share of customer wallet through the channel. Proper
distribution planning can ensure that the best available channels and
distribution methods are in place to efficiently move products and
services to customers

Hence distribution differentiate

business from successful business.

CHANNEL FUNCTIONS
A marketing channel KEY FUNCTIONS:
performs the work of RESEARCH
moving goods from PROMOTION
producers
to CONTACT
consumers.
It
MATCHING
overcomes the major
time,
place
and NEGOTIATING
possession gaps that PHYSICAL
DISTRIBUTION
separate goods and
services from those FINANCING
who would use them. RISK TAKING

CHANNEL
Amarketing

channelis a set of practices or

activities necessary to transfer the ownership of
goods, from the point ofproductionto the point
ofconsumption. It is the way products and services
get to theend-user, theconsumer; also known as
adistribution channel.A marketing channel is a
useful tool for management,and is crucial to creating
an effective and well-planned marketing strategy.

LEVELS OF CHANNEL

CHANNEL DESIGN
DECISIONS
Analyzing customer needs
(a) Lot size (b) Waiting and delivery time (c) Spatial

convenience(d) Product variety (e) Service backup

Establishing channel objectives Channel objectives
should be stated in terms of targeted service output
levels . Channel design must take into account the
strengths and weaknesses of different types of
intermediaries. Identifying major channel alternatives
A channel alternative is described by three elements :
(a)the types of available business intermediaries, (b)
the number of intermediaries needed, (c) and the
terms and responsibilities of each channel member .
Evaluating major channel alternatives

ANALYSIS OF CUSTOMER Needs

CHANNEL MANAGEMENT DECISIONS

SELECTING CHANNEL MEMBERS :

characteristics of intermediaries -channel members

length of business, other lines carried, growth and profit
record, cooperativeness and reputation.
MOTIVATING INDIVIDUAL CHANNEL MEMBERS Positive motivators
higher margins, special deals, premium, cooperative advertising
allowances, display allowances and sales contests.
Negative motivators threatening to reduce margins, to slow down
delivery, or to end the relationship altogether
EVALUATING THEIR PERFORMANCE OVER TIME :
Evaluating standards sales quotas, average inventory levels,
customer delivery time, treatment of damaged and lost goods,
cooperation in company promotion.
TRAINING : training programs and customer service.

MODIFYING CHANNEL ARRANGEMENTS

Companies can choose from a wide variety of
channels for reaching customers from sales forces
to agents, distributors, dealers, direct mail,
telemarketing, and the internet.
TYPES OF CHANNEL ARRANGEMENTS
1. The type of business intermediaries : Company
Sales force, prospects in the area, Manufactures
Agency, Industrial Distributors.
2. The number of intermediaries : Intensive
Distribution & Exclusive Distribution.
3. Terms and responsibilities of each channel
participants : price policies, conditions of sale,
territorial rights and specific service to be
performed by each party.

Legal and Ethical issues in channel

relations.
Economic criteria :- Each channel alternative will produce a different level

of sales and cost. Example :

1. Company sales representatives are better trained to sell the companys
products.
2. A Sales agency could comically sell more than a company sales force
due to more sales guys and better knowledge of the geographical area.
.Control criteria :- Channel evolution has to include control issues. Using a
sales agency poses a control problem.
Example : The agent might not master the technical details of the
companys product or handle its promotion materials effectively.
.Adaptive Criteria :- Each channel involves some duration of commitment
and loss of flexibility.
Example : A manufactures seeking a sales agency might have to offer a
five year contact. During this period, other means of selling such as direct
mail might become more effective, but the manufactures is not free to
drop the sales agency

ADVERTISING
Advertisinginbusinessis a

form
ofmarketingcommunicationus
ed to encourage, persuade, or
manipulate
anaudience(viewers, readers
or listeners; sometimes a
specific group) to take or
continue to take some action.
Most commonly, the desired
result is to drive consumer
behavior with respect to a
commercial offering, although
political and ideological
advertising is also common.
This type of work belongs to a
category calledaffective labor.

THE SIGNIFICANCE OF ADVERTISING

INBUSINESS IS AS FOLLOWS:

Why is advertising required?

Advertising is at the front of Crucial for a launch or announcement.

delivering
the
proper Source of revenue for publishers.
message to customers and Promotes goods, services, ideas and
prospective customers. The
events.
purpose of advertising is to Helps in increasing the sales.
convince customers that a
Maximizes the profit of an advertiser.
company's
services
or
Creates consumer awareness.
products
are
the
best,
enhance the image of the Educate society.
company, point out and Art, Science and Profession.
create a need for products or Demands creativity.
services, demonstrate new Element ofmarketing mix.
uses
for
established Target oriented.
products,
announce
new Use persuasion for results.
products
and
programs,
Demands monitoring ofdemandand
reinforce the salespeople's
supply.
individual messages, draw
Builds brand's image.
customers to the business,
and
to
hold
existing Generates employment.

customers.

 Television
ROLE,
RadioIMPORTANCE &
Types
of advertising
Infomercial
Online
New media
Product placement
Press advertising
Bill board
Mobile bill board
In store
Street
Shelter outdoor

advertising
1. Celebrity advertising
2. Aerial

TYPES OF ADVERTISING

Objective of
advertising
Communication or
sales?

Sales

Social and Ethical issues

in Advertising

versus
Communications
Objectives Sales-Oriented Objectives
Major Problem: Carryover effect:- monies
spent on advertising do not necessarily
have an immediate impact on sales.
Advertising may create awareness,
interest, and/or favourable attitudes
toward a brand, but these feelings will
not result in an actual purchase until the
consumer enters theMARKETfor the
product, which may occur later. Factors
influencing sales

Sales
versus
Communications
Objectives
Communications effects pyramid Effect
of advertising on consumers: movement
from awareness to action

PART II
EXAMPLES OF
ADVERTISING

TELEVISION
ADVERTISING
Television advertising is the most

powerful
form
of
advertising,traditionally,because it
is a combination of audio and video
advertising with unlimited variety,
unlike other forms of advertising
such as newspaper,magazines,radio
stations and websites.Base on
research report people give four
hours and a half before television
leisure activity since most of the
time.
But the costs involved in television
advertising is very high as it will be
repeated
many
times
if
TV
commercials are creative them
people do not think so they do not
buy
products.Productions
of
television advertising affects hiring
screenwriters,actor,video editors or
an advertising agency.

NEWSPAPER
ADVERTISING
A newspaper ad can contains details

such as prices and telephone number or

coupons.There are many advantages to
advertising in the newspaper. Form the
advertisers point of view,newspaper
advertising can be convenient because
production changes can be made quickly
if necessary and you can often insert a
new
advertisement
on
short
notice.Another advantage is the large
variety of ad sizes newspaper advertising
offers.Even though you may not have a
lot of money in your budget, you can still
place a series of small ads without
making a sacrifice
See in this advertisement we`ll pay your
tax and sale these words attracts the
consumer attention.This advertisement is
colourful and contain variety of products

STREET ADVERTISING
Out of home advertising

that reaches the consumer

while they are out side the
home
Out of home advertising is
focused on marketing to
consumers when they are
on the go in public
places,in transit, waiting
(such as in a medical
office) and/ or in specific
commercial location (such
as in retail venue).

RADIO ADVERTISING
A 30-second ad on radio is often less

expensive than a 30-second TV ad

and casier to produce. Radio ads can
be produced very quickly ,unlike
television ads and unlike magazine
prints ads you do not have to wait
for the next issue to come
out.Morning and evening are key
time when many businesses want
their ads to run and there are only
so many spots to go around.This can
drive up the cost for those choice
time sluts.
Health benefits for worker with
disabilities
(HBWD)
radio
advertisements spread important
massages about HBWD, the illions
Medicaid Buy-In program authorized
under the feders
ticket to work

CELEBRITY
ENDORSEMENT
A

form
of
brand
or
advertising campaign that
involves
a well known
person using their fame to
help promote a product or
service.Manufacturers
of
perfumes and clothing are
some of the most come
business users of classic
celebrity
endorsement
techniques
such
as
television ads and launch
events appearance in the
marketing of their products.