Distribution Channel and Logistics Management

Group - 2

Submitted by • • • • • Sambhaji Madhavi (Roll No – 70) Pramod Kamble (Roll No – 91) Pawan Shukla (Roll No – 101) Rajesh Chaugule (Roll No – 111) Sagar Dorge (Roll No – 121) .

• Channel decisions – affect other marketing decisions – involve long-term commitments .Distribution Channels • A set of interdependent organizations (intermediaries) involved in the process of making a product or service available for use or consumption.


. They have the contacts.Why Intermediates are required Intermediaries are specialists in selling. experience and scale of operation which means that greater sales can be achieved than if the producing business tried run a sales operation itself.

.Role of Intermediaries • Greater efficiency in making goods available to target markets • Intermediaries provide – Contacts – Experience – Specialization – Scale of operation • Match supply and demand.

Channel Functions • • • • • • • • Information Promotion Contact Negotiation Matching Physical Distribution Financing Risk taking .

Channel Levels • Manufacturer • Wholesaler • Retailer • Consumer other channel is direct channel in which producers sells diretly to consumers. examples :.telemarketing .

– all members co-operate to attain overall channel goals and satisfy the target market. .Channel Behavior and Conflict • The channel will be most effective when: – each member is assigned tasks it can do best. – Vertical Conflict occurs between different levels of the same channel. • Focus on individual goals leads to conflict – Horizontal Conflict occurs among firms at the same level of the channel.

Vertical Marketing Systems • Corporate – common ownership at different channel levels • Contractual – contractual agreement among channel members • Administered – leadership assumed by dominant members .

Difference between conventional and vertical marketing system .

Channel Management Decisions Selecting FEEDBACK Motivating Evaluating .

– the explosion in product variety has created a need for improved logistics management. – information technology has created opportunities for major gains in distribution efficiency. – logistics is a major cost element for most companies. .Logistics • Involves entire supply chain • Increasing importance of logistics – effective logistics is becoming a key to winning and keeping customers.


Higher Distribution Costs/ Higher Customer Service Levels Lower Distribution Costs/ Lower Customer Service Levels . • Maximize Profits. Not Sales.Goals of Logistics system • Provide a Targeted Level of Customer Service at the Least Cost.

Logistics Functions • • • • Order Processing Warehousing Inventory Management Transportation .

low-value goods. cost-effective for shipping bulk products. low-bulk items . and chemicals from sources to markets Air High cost. slowest form Pipeline Ship petroleum. piggyback Truck Rail Flexible in routing & time schedules. efficient for short-hauls of high value goods Water Low cost for shipping bulky. natural gas. ideal when speed is needed or to ship high-value.Transportation Modes Nation’s largest carrier.

Cross-Functional Teamwork inside the Company Building Channel Partnerships Third-Party Logistics . Both Inside the Company and Among All the Marketing Channel Organizations.Integrated Logistics Management Concept Recognizes that Providing Better customer Service and Trimming Distribution Costs Requires Teamwork.

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