INDUSTRIAL MARKETING

Distribution Channels and Logistics

What are Critical functions seller looks
forward to from Channels?
1.Quick / Exceptional faster delivery
2.Financial resources
3.Good manpower
4.Quicker service
5.Selling expertise
6.Good systems for feedback
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Distribution Channels and Logistics
What are Customers expectations
1. Quick supplies
2. Lot sizes as per requirements
3. Immediate attention for
 Problems
 Convenience
 Meeting
4. Technical service
5. Availability of spares or emergency requirements
INDUSTRIAL MARKETING
Distribution Channels and Logistics
Factors for Choosing right Channel
1. Good organisation who can act like the
manufacturer and offer marketing functions
2. Covering the product line
3. Market / customer coverage
4. Do market development
5. Exclusive or Multiple distribution
INDUSTRIAL MARKETING
Distribution Channels and Logistics
TRAINING THE CHANNEL MEMBERS
MOTIVATING CHANNEL MEMBERS
CONTROL & EVALUATION OF CHANNELS

Legal Issues
1. Area / product range restrictions
2. Restricting dealing with competitors
3. Exclusive rights / territories
4. Conflict of interest
5. Serving of large orders (through dealer or directly)
INDUSTRIAL MARKETING
Distribution Channels and Logistics

LOGISTICS ACTIVITIES

1. TRANSPORTATION
2. INVENTORY MANAGEMENT
3. CUSTOMER SERVICE
4. ORDER PROCESSING
INDUSTRIAL MARKETING
Distribution Channels and Logistics

Supports available for above activities

1. Warehousing
2. Material handling
3. Packing – protective
4. Production scheduling
5. Data recording
6. Information / feedback
INDUSTRIAL MARKETING
Distribution Channels and Logistics