Documentos de Académico
Documentos de Profesional
Documentos de Cultura
1
Channel Flows:
Physical /Possession Flow
Title/Ownership Flow
Payment/Financial Flow
Information Flow
Promotion Flow
Risk Flow
2
Channel Levels:
Length of a channel:
No. of intermediaries b/n producer & final consumer
Zero Level:
Manufacturer Consumers
Eg: Eureka Forbes, Dell PC/Laptops
One Level:
Manufacturer Retailer Consumer
Eg: Maruti/Suzuki dealers
Two Level:
Manufacturer Wholesaler Retailer Consumer
Eg: FMCG, White goods
Three Level:
Manufacturer Dist. Wholesaler Retailer Cons.
Eg: FMCG, White goods 3
Reverse Channel of Marketing/ Backward Channel:
Flow of goods from end users to producers. Eg: Soft
drink bottles, product recall, old issues of magazines
Channel-Design Decisions:
Understand Service Output levels/Utilities desired
by target customers:
Lot Size Utility
Temporal Convenience Utility
Spatial Convenience Utility
Product Variety/Selection Utility
Service Utility
Establishing Channel Objectives & Constraints:
Minimize cost & transport time
Environmental Constraints
4
Which markets to serve
Channel Design Decisions (Cont.)
Identifying Major Channel Alternatives:
Type of Intermediaries:
Company sales force
Outside agency Eg: DSAs employed by many banks
Number of Intermediaries:
Exclusive Distribution: Seen in automobile sector
Selective Distribution: Nike shoes, Branded jewelry
Intensive Distribution: Used for FMCG products
Terms & Responsibility of Channel Members:
Price Policy/Margins
Conditions of Sale/ Guarantees
Distributor’s territorial rights
Responsibilities 5
Channel Design Decisions
(Cont.)
Evaluating Major Alternatives
Evaluation to be based on:
Economic Criteria
Control Criteria
Adaptive Criteria