INDUSTRIAL MARKETING

Distribution Channels and Logistics

What are Critical functions seller looks forward to from Channels? 1. 2. Quick / Exceptional faster delivery Financial resources

3.
4. 5. 6.

Good manpower
Quicker service Selling expertise Good systems for feedback

What are Customers expectations 1. 2. 3. Quick supplies Lot sizes as per requirements Immediate attention for

4. 5.

Problems
Convenience Meeting

Technical service Availability of spares or emergency requirements

INDUSTRIAL MARKETING

Distribution Channels and Logistics

Factors for Choosing right Channel 1. 2. Good organisation who can act like the manufacturer and offer marketing functions Covering the product line

3.
4. 5.

Market / customer coverage

Do market development Exclusive or Multiple distribution

TRAINING THE CHANNEL MEMBERS MOTIVATING CHANNEL MEMBERS CONTROL & EVALUATION OF CHANNELS

Legal Issues

1.
2. 3. 4. 5.

Area / product range restrictions

Restricting dealing with competitors Exclusive rights / territories Conflict of interest Serving of large orders (through dealer or directly)

INDUSTRIAL MARKETING

Distribution Channels and Logistics

LOGISTICS ACTIVITIES 1. 2. TRANSPORTATION INVENTORY MANAGEMENT

3.
4.

CUSTOMER SERVICE
ORDER PROCESSING

Supports available for above activities 1. 2. 3. 4. 5. 6. Warehousing Material handling Packing protective Production scheduling Data recording Information / feedback