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DISTRIBUTION  A set of independent organizations involved in the process of making a product or service available for use or consumption by the consumer or business users.
International distribution ,[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],The Role of Marketing Channels in Marketing Strategy
Types of Marketing Channels ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object]
[object Object],[object Object],[object Object]
Producer Distributor Dealer Retailer Consumer Segment 1 Consumer Segment 2 Business Segment 1 Business Segment 2 Catalog Telephone Internet Sales Force ,[object Object]
[object Object]
Channel Strategy Decisions ,[object Object],[object Object],[object Object],[object Object]
External distribution factors ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Internal decision factors ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object]
[object Object],[object Object],M = Manufacturer W= Wholesaler R = Retailer
Selective distribution :  channel policy in which a firm chooses only a limited number of retailers to handle its product line ,[object Object],M = Manufacturer W= Wholesaler R = Retailer
Exclusive distribution :  channel policy in which a firm grants exclusive rights to a single wholesaler or retailer to sell its products in a particular geographic area ,[object Object],M = Manufacturer W= Wholesaler R = Retailer
FAHAD UMER
[object Object],[object Object],[object Object],[object Object]
Channel Management and Leadership ,[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Physical Distribution ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object]
Functions performed by intermediaries ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
A typical export (distribution) procedure Exporter  Importer  Importer’s  bank  2 Bank in  exporter’s  country 3 4 Manufacturing 5 Secure transport and documentation 6 Ship 7 Customs Import warehouse 9 8 1
 
[object Object],- Customer Characteristics - Cultural  Distribution - Competition - Company objectives (for market share and profitability) - Character (nature of product, positioning of the product) - Cost (cost incurred in maintaining the channel) - Coverage (intensive, selective, exclusive distributions) - Control (product/service presentations, quality, image) - Continuity - Communication - Capital (financial requirement)
[object Object],- Govt. Agency - Private Sources ,[object Object],- Performance - Professionalism ,[object Object],- Contract duration - Geographic boundaries - Compensation - Products and conditions of sale - Communication between parties
MARKETING LOGISTICS & SUPPLY CHAIN MANAGEMENT  The tasks involved in planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to point of consumption to meet customer requirements at a profit.  Supplier Company Reseller Customer Inbound Logistics Outbound Logistics Reverse Logistics
MAJOR LOGISTICS FUNCTIONS  Warehousing  Inventory Management Transportation (Inter modal transportation)
[object Object]
Global Channel Design ,[object Object],[object Object],[object Object],[object Object],[object Object]
Nike’s ‘Do it yourself’ ,[object Object],[object Object],[object Object],[object Object],[object Object]
Kodak’s own airfreight hub ,[object Object],[object Object],[object Object],[object Object]
WAQAR HUSSAIN
CHANNEL DESIGN DECISION PROCESS A-  ANALYZING CONSUMER NEED  For maximum effectiveness channel analysis and decision making should be more purposeful.  ,[object Object],[object Object],[object Object],[object Object]
B-  SETTING CHANNEL OBJECTIVES  ,[object Object],[object Object],[object Object],[object Object],C-  IDENTIFY MAJOR ALTERNATIVES  ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],D-  EVALUATING MAJOR ALTERNATIVE  ,[object Object],[object Object],[object Object],[object Object]
E-  EVALUATING CHANNEL MEMBERS  ,[object Object],[object Object],[object Object]
CONVENTIONAL DISTRIBUTION CHANNEL V/S  VERTICAL MARKETING SYSTEM,  HORIZONTAL MARKETING SYSTEM CONVENTIONAL DISTRIBUTION CHANNEL A channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits. VERTICAL MARKETING SYSTEM A distribution channel structure in which producers, wholesalers, and retailers act as unified system. One channel member owns the others, has contract with them, or has so much power that they are cooperate.
TYPES OF VMS Vertical marketing system that combines successive stages of production and distribution under a single ownership – channel leadership is established through common ownership.  CORPORATE VMS CONTRACTUAL VMS A vertical marketing system in which independent firms of different level of production and distribution joint together through contracts to obtain more economies or sales impact then they could achieve along such as Franchise.  ADMINISTERED VMS A vertical marketing system that coordinates successive stages of production and distribution not through common ownership of contractual ties but through the size and power of one of the parties. Manufacturers of top brands can obtain strong trade cooperation and support from resellers.
Producer Wholesaler Retailer  Consumer Consumer  Wholesaler Retailer Producer Conventional Marketing Channel Vertical Marketing Channel
HORIZONTAL MARKETING SYSTEM A channel arrangement in which two or more companies at one level joint together to follow a new market opportunity. By working together companies can combine their financial, production or marketing resources to accomplish more than any one company could alone.  e.g; Askari and Daewoo PSO & Pizza Hutt
CHANNEL LEVEL A layer of intermediaries that perform some work in bringing the product and its ownership closer to the final buyer.  DIRECT MARKETING CHANNEL A marketing channel that has no intermediary level.  IN-DIRECT MARKETING CHANNEL A channel involving one or more intermediary level.
DIRECT MARKETING
STORE  ONE DISTRIBUTOR
CHANNEL MEMBERS  Producer Consumer Consumer Retailer Producer Producer Wholesaler Retailer Consumer ZERO-LEVEL ONE-LEVEL SECOND-LEVEL Direct Marketing In-Direct Marketing In-Direct Marketing
HOW CHANNELS ARE CHOSEN PRODUCTS ,[object Object],[object Object],[object Object],CUSTOMER ,[object Object],[object Object],[object Object],MARKETS Urban or rural

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Copy Of Channel Of Distribution

  • 1. DISTRIBUTION A set of independent organizations involved in the process of making a product or service available for use or consumption by the consumer or business users.
  • 2.
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  • 23. A typical export (distribution) procedure Exporter Importer Importer’s bank 2 Bank in exporter’s country 3 4 Manufacturing 5 Secure transport and documentation 6 Ship 7 Customs Import warehouse 9 8 1
  • 24.  
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  • 26.
  • 27. MARKETING LOGISTICS & SUPPLY CHAIN MANAGEMENT The tasks involved in planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to point of consumption to meet customer requirements at a profit. Supplier Company Reseller Customer Inbound Logistics Outbound Logistics Reverse Logistics
  • 28. MAJOR LOGISTICS FUNCTIONS Warehousing Inventory Management Transportation (Inter modal transportation)
  • 29.
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  • 38. CONVENTIONAL DISTRIBUTION CHANNEL V/S VERTICAL MARKETING SYSTEM, HORIZONTAL MARKETING SYSTEM CONVENTIONAL DISTRIBUTION CHANNEL A channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits. VERTICAL MARKETING SYSTEM A distribution channel structure in which producers, wholesalers, and retailers act as unified system. One channel member owns the others, has contract with them, or has so much power that they are cooperate.
  • 39. TYPES OF VMS Vertical marketing system that combines successive stages of production and distribution under a single ownership – channel leadership is established through common ownership. CORPORATE VMS CONTRACTUAL VMS A vertical marketing system in which independent firms of different level of production and distribution joint together through contracts to obtain more economies or sales impact then they could achieve along such as Franchise. ADMINISTERED VMS A vertical marketing system that coordinates successive stages of production and distribution not through common ownership of contractual ties but through the size and power of one of the parties. Manufacturers of top brands can obtain strong trade cooperation and support from resellers.
  • 40. Producer Wholesaler Retailer Consumer Consumer Wholesaler Retailer Producer Conventional Marketing Channel Vertical Marketing Channel
  • 41. HORIZONTAL MARKETING SYSTEM A channel arrangement in which two or more companies at one level joint together to follow a new market opportunity. By working together companies can combine their financial, production or marketing resources to accomplish more than any one company could alone. e.g; Askari and Daewoo PSO & Pizza Hutt
  • 42. CHANNEL LEVEL A layer of intermediaries that perform some work in bringing the product and its ownership closer to the final buyer. DIRECT MARKETING CHANNEL A marketing channel that has no intermediary level. IN-DIRECT MARKETING CHANNEL A channel involving one or more intermediary level.
  • 44. STORE ONE DISTRIBUTOR
  • 45. CHANNEL MEMBERS Producer Consumer Consumer Retailer Producer Producer Wholesaler Retailer Consumer ZERO-LEVEL ONE-LEVEL SECOND-LEVEL Direct Marketing In-Direct Marketing In-Direct Marketing
  • 46.