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White Paper on Channel Management & Bargaining Theory

White Paper on Channel Management & Bargaining Theory

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Published by: D Attitude Kid on Jun 13, 2010
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03/14/2012

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 Channel Management&Bargaining Theory
 \ White PaperWritten By:Rajat GuptaMBA2(IB)
Punjab College of Technical Education
 
 
Channel
 
‘Path or pipeline’ through which goods and services flow in one direction (from vendorto consumer), and the payments generated by them flow in opposite direction (fromconsumer to vendor).
 
The Network of partners in the value chain that cooperate to bring products fromproducers to ultimate consumers.
 
A group of individuals and organizations that direct the flow of products from producersto customers.
 
 
A set of institutions necessary to transfer the title to goods and to move goods from thepoint of consumption.
 
Channel Members
 
All those who help in bringing product to the consumer from the manufacture.
Types of Channel Members
 
Agents/Brokers
 
o
 
Channel partners that match marketers with wholesalers or in organizationmarkets, with customers
 
 
Wholesalers
 
o
 
 A wholesaler is someone who primarily sells to other retailers
 
o
 
 Also may retail on own
o
 
Typically, buys in bulk 
 
 
Retailer
 
o
 
The most visible face of the distribution system
o
 
 India has the largest number of retailers in the world 
 
 
Value-added reseller
 
o
 
channel partners that buy products from marketers, add value by modifying or enhancing value, then reselling them
 
o
 
 EXAMPLE -
 
Vehicle dealer adds several accessories
 
Functions of Channel Members
 
Research
 
Promotion
 
Market contact
 
Making Products Available
 
Physical possession and distribution
 
Financing
 
 
Risk Taking
 
Providing Value-Added Services
 
Negotiation
 
Storage
Types of Channel
 Four Channels through which marketers can reach customers
Channel 1 Channel 2 Channel 3 Channel 4
Manufacturer Manufacturer
 
Manufacturer ManufacturerAgentWholesaler WholesalerRetailer Retailer RetailerCustomer Customer Customer Customer

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