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An Assignment On

CHANNEL MANAGEMENT

Submitted To: By:----------------------------Mehta Asst .Professor

Submitted Jinendra MBA Part II (Finance)

OM KOTHARI INSTITUTE OF MANAGEMENT & RESEARCH, KOTA.


Affiliated to Rajasthan Technical University, Kota

CHANNEL MANAGEMENT_______________________________________
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The channel of distribution can broadly divided in following two part first direct and the second indirect under direct channel of distribution, manufacturing sells directly to the consumers and the second is wholesaler and retailer.

Producer of manufacturi ng

Direct

Indirect

Selling at manufactur er

Door to door selling

Mail order

Wholesaler

Retailer

FOLLOWING STEP INVOLVE IN DESIGNING A CHANNEL MANAGEMENT

FORMULATING THE CHANNEL

OBJECTIVE
Identify channel function Linking channel design to product characteristic Evaluation of the distribution environment Evaluation of competitors Matching the channel design to company resources Evaluating the alternative and selecting the best

FORMULATING THE CHANNEL OBJECTIVE: - Formulation of the channel objective is the first step in design the channel system. Following common objective of firms . 1. Effective coverage of the target market. 2. Efficient and cost effective distribution. 3. Ensuring that consumer incur minimum exertion in procuring the product. IDENTIFY CHANNEL FUNCTION:Identify of the function to be performed by the channel is the next in designing a channel system. LINKING CHANNEL DESIGN TO PRODUCT CHARACTERISTIC:Different product requires different channel system. The firm should analyze the characteristic of the product and chose the channel system. EVALUATION OF THE DISTRIBUTION ENVIRONMENT:While selecting the channel design, the firm should also take into account the distribution environment obtaining in the country/territory. EVALUATION OF COMPETITORS:The firm should also study the competitor channel pattern before design its channel design for find good performance. MATCHING THE CHANNEL DESIGN TO COMPANY RESOURCES:The resource available with the organization also grove choice of channel. 1. Firm with limited resources settle for conventional channels. 2. Firm with large resources have more potions. EVALUATING THE ALTERNATIVE AND SELECTING THE BEST:With the completion of the forgoing step the number of alternative would have narrowed down consideration.

Distribution channel management encompasses all activity dealing with the distribution function of a firm. The distribution strategy provides guideline for decision making. The management function involves implementing the distribution strategy of the firm. 1. The ex ante phase. 2. The ex paste phase

FRAMEWORK OF CHANNEL MANAGEMENT:-

Distribution channel strategy Channel objective Activity finalization Organizing the activity ` Development policy guiding

Designing channel structure Establishing the channel Motivating channel members Resolving conflicts among channel members