Professional Documents
Culture Documents
12/23/2020
INTRODUCTION
TO
DISTRIBUTION
MANAGEMENT
2
A DEFINITION
3
ANOTHER DEFINITION
4
YET ANOTHER DEFINITION
5
What is a Distribution
Channel?
6
WHAT IS A CHANNEL?
• AMERICAN MARKETING ASSOCIATION DESCRIBES
CHANNEL AS:
‘STRUCTURE OF INTRA-COMPANY ORGANIZATION
UNITS AND EXTRA-COMPANY AGENTS, DEALERS,
WHOLESALERS AND RETAILERS THROUGH WHICH A
PRODUCT OR SERVICE IS MARKETED’
7
Distribution Channel…
Set
Set of
of interdependent
interdependent organizations
organizations
involved
involved inin the
the process
process ofof making
making aa
product
product or or service
service available
available for
for use
use or
or
consumption
consumption by by the
the consumer
consumer or or
business
business user.
user.
CLASSIFICATION OF CHANNELS
• SALES CHANNEL
• DELIVERY CHANNEL
• SERVICE CHANNEL
9
NEED FOR DISTRIBUTION
• VISIBILITY
10
HOW DISTRIBUTION ADDS VALUE?
11
DISCREPANCIES AND CHANNELS
(ALDERSON WROE,1954)
• SPATIAL..REDUCE DISTANCE
• TEMPORAL..SPEEDS
• NEED TO BREAK BULK
• NEED TO PROVIDE ASSORTMENT
• FINANCIAL..FUND OR CREDIT
12
MARKETING FLOWS IN CHANNELS
14
C & F Agents
sosoSource:quora.cour
OTHER KINDS OF CHANNEL PARTNERS
16
References
Thank You
• Service providers need to make greater efforts to retain
those customers who have been on the network for a longer
time and who have been contributing more to the top line
or bottom line.