MARKETING CHANNEL

P R E S E N T E D BY DH I R E N D R A KU M A R J A I SWA L

R O L L N O - 1 6 0 4 3 7 0 0 2 0

BIET JHANSI MBA DEPARTMENT

DEFINITION

MARKETING CHANNELS ARE SETS OF INTERDEPENDENT ORGANIZATIONS INVOLVED IN THE PROCESS OF MAKING A PRODUCT OR SERVICE AVAILABLE FOR USE OR CONSUMPTION.

MOST PRODUCERS DO NOT SELL THEIR GOODS DIRECTLY TO THE FINAL USERS,BETWEEN THEM STANDS A SET OF INTERMEDIARIES PERFORMING A VARIETY OF FUNCTIONS.

IN MARKETING CHANNEL ,WE WILL ADRESS THE FOLLOWING QUESTIONS

WHAT IS MARKETING CHANNEL SYSTEM ?WHAT WORK DO MARKETING CHANNELS PERFORM?HOW SHOULD CHANNEL BE DESIGNED?

*CONSUMER MARKETING CHANNEL

MANUFACTURER

WHOLESALER

RETAILER

CONSUMER

COCA-COLA COMPANY MANUFACTURE THE DIFFERENT TYPE OF COLD DRINS AND IT IS EASILY AVAILABLE IN THE MARKET.

WHY BECAUSE THEIR MARKETING CHANNEL IS VERY STRONG

AFTER MANUFACTURING THE PRODUCT ,IT GOES TO THE WHOLESALER WHO BUY A LARGE NUMBER OF THE PRODUCT

WHOLESALER RESALES THE PRODUCT TO RETAILER ,RETAILER ARE THE VENDORS , SHOPKEEPERS ETC.

AFTER RETAILERS IT GOES TO THE CONSUMER AND CONSUMER BUY IT EASILY BECAUSE IT IS EASILY AVAILABLE

IN THIS CHANNEL MANUFACTURER HAVE THREE INTERMEDIARIESI WILL GO THROUGH IT WITH AN EXAMPLEI TAKE THE EXAMPLE OF COCA-COLA COMPANY

IT IS NOT IMPORTANT THAT EVERY COMPANY HAS THIS 3 INTERMEDIAREIS CHANNEL ,SOME HAVE THE MORE AND SOME

HAVE THE LESS

MANUFACTURER

CONSUMER

MANUFACTURER

RETAILER

CONSUMER

THE ROLE OF MARKETING CHANNEL• WHY WOULD A PRODUCER DELEGATE SOME OF THE

SELLING JOB TO INTERMEDIARIES • BECAUSE PRODUCER CAN OFTEN GAIN IN EFFECTIVENESS

AND EFFICIENCY BY USING INTERMEDIARIES

• THROUGH THEIR CONTACTS,EXPERIENCE,SPECIALIZATION AND SCALE OF OPERATION,INTERMEDIARIES MAKE GOODS WIDELY AVAILABLE AND ACCESSIBLE TO TARGET MARKETS

• USUALLY OFFERING THE FIRM MORE THAN IT CAN ACHIEVE ON ITS OWN

CHANNEL DESIGN DECISIONS

• IN DESIGNING THE MARKETING CHANNEL , THE MARKETER MUST UNDERSTAND THE SERVICE OUTPUT LEVELS ITS TARGET CUSTOMERS WANT.

CHANNELS PRODUCE 3 SERVICE OUTPUTS

WAITING AND DELIEVRY TIME• PRODUCT VARIETY• LARGE SIZE

THANK YOU