FORMULATING CHANNEL STRATEGY

BYKunal Lakshmi Manoj Pooja & pradeep

Objective
To know the external & internal factors that indicates that a marketer should probably use distributors. The services that industrial customer requires of distributors. The characteristics that a marketer should consider in choosing a distributor. The steps that the industrial marketer must take to ensure that indirect channels are effective.

 Distribution channel :- According to American Marketing Association A channel of distribution is a structure of intra-company organizations ,units & intra company agents & dealers, wholesalers & retailers through which a commodity, product or service is marketed.

Characteristics Of Industrial Distribution Channel: Route or Pathway Flow Composition Functions Remuneration

INDUSTRIAL DISTRIBUTOR
Industrial distributors are independent entrepreneurs & primarily selling organizations who buy & stock inventory, which they re-sell at prices of their own choices. Industrial distributors are independent of the manufacturers free to seek their own goals & profits. Both agree to work for common goals.

Factors Affecting Distribution Channel

Geographical Distribution

Channel Size

Intermediaries

Operating Characteristics

Image or Reputation Service Levels

Financial Strength

Effectiveness

Cost