sales & distribution management, This presentation explain how channels are essential in distribution management

1. Selection of
Channels
A Sales & Distribution Presentation

2. Arti
Presented By

3. Channel Management is a process by which a producer or supplier directs
marketing activity by involving and motivating the entities comprising its
channel of distribution
Various Channels are: Wholesalers, Retailers, Distributors & Agents
Channel Management

4. Market Intermediaries
MarketingIntermediaries
Middlemen
Agent or Broker
Wholesaler
Retailer
Distributor
Value-added Resellers
Merchants
Facilitating Agents

5. Need for
Distribution Channels

6.  Direct Marketing Channel
 Indirect Marketing Channel
Types of Channels

7. Direct Marketing Channel (or Zero Level)
This type of channel has no intermediaries. In this distribution system, the goods
go from the producer directly to the consumer, e.g., Amway, Eureka Forbes.
Direct Marketing Channel

8. Indirect Marketing Channel
Producers
Consumers
Retailer
Wholesalers
Consumers
Retailer
Consumers
Retailer
Wholesalers
Distributor
Consumers
Retailer
Wholesalers
Distributor
Agent
Level- 1
Level- 2
Level- 3
Level- 4

9. Channel Strategy Decisions
Market Factors
 Customer Preference
 Organizational Customers
 Geography
Competitors
Nature & Availability of Intermediaries
Product Factors
 Life Cycle
 Selling Price/Unit
 Perishability
 Size & Weight
 Consumer Perceptions
ChannelSelectionCriteria

10. Key Issues in Determining Channel Requirement
While a manufacturer faces an agenda of issues related to finance, marketing and industrial
relations, attention is focused on selected topics that directly impact marketing channel
arrangements. The key issues related to this are:
 Product proliferation and dynamics; and
 Total-quality initiatives.
These two issues are significant drives for a typical firm in determining how channel
requirements will be delineated.

11. Manufacturing Strategy

12. Wholesalers
Wholesale trade is defined as “all establishments or places of business primarily
engaged in selling merchandise to retailers; to industrial, commercial,
institutional or professional users or to other wholesalers; or acting as agent in
buying merchandise for or selling merchandise to such persons or companies”.
1. Merchant Wholesalers
2. AgentWholesalers
3. Manufacturers’ Sales branches and offices

13. Merchant Wholesalers
Merchant Wholesalers
 Full Function or Service Wholesalers
 Limited Function Wholesalers
 Cash & Carry Wholesalers
 Drop Shippers
 Truck Wholesalers
 Mail Order Wholesalers
 Prod. & Retail Cooperative
Wholesalers

14. Agent Wholesalers
Agent Wholesalers
 Manufacturers’ Agent
 Brokers
 Commission Merchant
 Selling Agents
 Commercial Auction Companies
Manufacturer’s Sales Branches and Sales Offices
Wholesalers

15. A wholesaler is generally selected on the basis of his performance
evaluation. Before selecting wholesalers, manufacturers’ analyze a
wholesaler on the basis of the following questions:
 How can a wholesaler serve a supplier?
 How can a wholesaler serve a retailer?
 How can a wholesaler serve business users?
Selecting Wholesalers

16. Strategic Management of Wholesalers
Strategic Management of Wholesalers
 Effectiveness
 Profitability
 Niche Marketing
 Proprietary Brand
 New Technology
Wholesalers

17. Introduction to Retailing
Retailing
It include all activities incidental to selling to ultimate consumer.
According to ‘William.J.Stanton’, “A retailer or a retail store is a business
enterprise which sells primarily to ultimate consumers for non business use.”

18. Function of Retailing
Collect product assortment
and offer them for sale
Product Information
Mark prices and pay for
goods
Conclude Transaction with
final consumer
Retailers

19. Relation Between Retailers & Suppliers
Selling goods or services
for use of retailer
Selling goods or services
for reselling by retailer

20. Wheel of Retailing
Innovation
Trading UpVulnerability

21. Thank You