Siddharth Goyat

A00114179
Assignment 1
1. A channel is set of practices and activities necessary to transfer the
ownership of goods from the point of production to point of consumption in
other words it is the way where the products and services get to the end
user ,the consumer, it is useful tool for management and it is crucial in
creating an effective and well planned strategy.it is dual distribution channel it
is less traditional form that allows the manufacturer, wholesaler to reach the
end user by using more than one distribution channel  . Channel partner is
someone who helps people to buy products services or technology, it is
usually an intermediary between the end user of a product or service and an
original manufacturer or a provider of that service. For instance, let’s take
amazon company, they do not manufacture most of the product that they sell
but they act as channel partner to help consumer to buy products that are
listed on their sites. Likewise, a grocery store they do not manufacture a
product by IN themselves which they are selling but they work through
distribution channels and other people manufacture these products to bring
them to us in one location in retail.

2. Channel partner are essential for marketing to achieve its objectives of having
at the right time ,at the right place, and the right product.as consumers have
become more demanding they are used to getting what they want ,where they
want if we fail to satisfy their needs they buy the competing product .In the
recent years the organization have begun to focus on their marketing
channels ,they have begun to look at all the organizations which are into the
part of process of producing ,promoting and offering to the users instead of
looking at the organisation that sell and promote products .all these
organisation are considered as part of offerings of supply chain. The supply
chain includes the producer of raw material that goes into the product ,if it is
food products the supply chain extends through the distributors all the way the
farmers who grew the ingredients and the place where they bought the
seeds ,channel members add value to the both producers and customers by
gathering information about producer and consumer to make products
available in market. They allow the producer to realize the benefits that only
larger organization may be able to support. marketing, packaging. Financing,
storing delivery are the channels tasks, they add value to the supply chain
management by these ways

3. Vertical marketing system is the one in which the main of distribution channels
like producers, wholesalers and retailers work together as a unified group in
order to meet the customer needs. This led to increase in profit for each
involved in the channel of distribution. In traditional marketing system the
main intention of producer ,wholesalers and retailers is to maximise the profits
,this may lead to unending conflicts between the channel partnered resulting
in less profit for the business as the whole.so to overcome this vertical
marketing system has been introduced.it is divided into three types like
 corporate vertical marketing system, contractual vertical marketing system,
administered vertical marketing system.

In corporate vertical marketing system, the one member of the distributor,

channel be it a producer, or a retailer owns all the other members of the
channel. Having all elements of production or distribution under single
ownership, in contractual vertical marketing system every member works
independently, and they have the activity on contractual basis example for this
is franchising

In administered vertical marketing system, there is no contract their activities

is carried in the basis of size and the power

 HORIZONATAL MARKETING SYSTEM

 Two or more companies at one level join together to follow a new marketing
opportunity. they combine in terms of financial, production and marketing
resources. They work together on permanent basis, temporary, or they create
a separate company for instance Microsoft and yahoo joins to alliance against
google Microsoft Bing be the main search engine on yahoo, yahoo focus on
create strong content and tools to tailor the yahoo.so these are vertical and
horizontal marketing system

4. Logistics has been defined as the art and science of obtaining ,producing, and
distributing the material and product in the proper place and improper quantity
,it is the part of supply chain management that plans ,implements and control
the efficient ,effective forward and reverse flow and storage of goods and
services and related information between the point of origin and
consumption ,logistics is the key to success with supply chains ,in logistics the
right product is given to right customer in right quantity ,right condition at the
right place at the right time, it is the part of supply chain, a supply chain is
global network use to deliver products and services from raw material to end
customers through flow of information physical distribution, it is important
because the consumer behaviour has been changed they have begun to
become more demanding like when to buy where to buy and what to buy if
there is less logistics they may lose consumer and also the supply chain
management reduces costs ,it increases efficiency it results in increased
output and increased profits

5. Types of Retailing
 Store Retailing: Department store is the best form of store retailing, to
attract a number of customers. The other types of store retailing
include, speciality store, supermarket, convenience store, catalogue
showroom, drug store, super store, discount store, extreme value
store. Different competitive and pricing strategy is adopted by different
store retailers.
 Non-store Retailing: It is evident from the name itself, that when the
selling of merchandise takes place outside the conventional shops or
stores, it is termed as non-store retailing. It is classified as under:
 Direct marketing: In this process, consumer direct
channels are employed by the company to reach and
 deliver products to the customers. It includes direct mail
marketing, catalog marketing, telemarketing, online
shopping etc.
 Direct selling: Otherwise called as multilevel selling and
network selling, that involves door to door selling or at
home sales parties. Here, in this process the salesperson
of the company visits the home of the host, who has
invited acquaintances, the salesperson demonstrates the
products and take orders.
 Automatic vending: Vending machines are primarily
found in offices, factories, gasoline stations, large retail
stores, restaurants etc. which offer a variety of products
including impulse goods such as coffee, candy,
newspaper, soft drinks etc.
 Commodity retail business is mainly operated by various
types of retailers and retail enterprises.
the difference:
1. Different in nature:
Wholesale is all the activities that occur when goods or
services are sold to customers who buy them for resale
or for enterprise use. Retailing includes all activities that
directly sell goods and services to consumers for
personal and non-commercial purposes.
2. The transaction volume is different:
Wholesale transaction volume is allowed, while retail
transaction volume is small.
3. The price of the sale is different:
Wholesale is mainly selling at low prices, mainly in terms
of quantity. Quantity and price are also inversely
proportional. The more the quantity, the lower the price.
Retail is not.
Extended information:
Precautions for online wholesale products:
1. Look at the hardware. Choosing a professional
wholesale website will have a keen eye and control on
the quality of the goods and market trends.
For example, professional wholesale
websites FashionTIY, Alibaba, ECVV, etc., recurring in
various media and major web site navigation stations are
some relatively well-known B2B platforms, which
provides an idea for choosing B2B platforms.
2. Look at the software. The quality service and
professional industry quality of online wholesale city are
also valued by many self-employed. The price is stable
and preferential; the speed of delivery is timely; and the
after-sales service is considerate and meticulous.
3. For sellers who are not very trustworthy, you must
choose to send money to other company accounts, legal
person accounts, and third-party secured transactions for
payment.