TYPES OF CHANNELS

AJIT THATTE
 MANUFACTURER BASED CHANNELS

• These are channels where manufacturer sells directly or through

their owned channels.
Eureka Forbes( door to door)
Tupperware ( home parties)
Otto Burlington (mail order)
Bata India, Indian Oil, BPCL
Maruti , Raymonds, Titan,
 RETAILER BASED CHANNELS

• These are channels owned or franchised by retailers

Pizza Hut
Star Bucks
Trent
Big Bazar
Spencer
Circuit City
 SERVICE PROVIDER BASED CHANNELS

• These channels do not provide products but only services( support,

pure service, training, consulting, testing/analysis)
Auto Mobile
Health care
Education
Diagnostics
Broadband, Internet last mile connection
 OTHER TYPES OF CHANNELS

• Global channels
• Electronic channels
 VERTICAL MARKETING STSTEM

• Conventional marketing channel comprises an independent

producer, wholesalers, retailers. Each on its own seeks to maximise
its profits.
• Vertical marketing system (VMS) comprises of the producer,
wholesalers, retailers acting as a unified system. One channel
member ,the channel captain owns the others or franchises them or
has so much power that all cooperate with him.
• Channel captains are Coca-Cola with soft drinks, Gillette with
shaving products
• Gives them advantage of economies thru size, bargaining power,
and elimination of duplication of services
 TYPES OF VMS

• CORPORATE VMS
• ADMINSTERED VMS
• CONTRACTUAL VMS – WHOLESALER SPONSORED
VOLUNTARY CHAINS, RETAILER COOPERATIVES, FRANCHISE
ORGANISATIONS
 HORIZONTAL MARKETING SYSTEMS

• Two or more unrelated companies put their resources or programs

together to exploit an emerging marketing opportunity
• Post offices selling insurance/mutual funds, ATM’s shared by banks,
HLL tie-up with Pepsi for bottling and distribution of Lipton’s ready to
drink beverages
MULTI-CHANNEL MARKETING SYSTEM