selecting and managing marketing channels

rcmarin81@yahoo.com 1

MARKETING CHANNELSSelecting and Managing

RONALDO C. MARIN, JR.

Master in Management

Good Morning!Ronaldo Marin, Jr.

Springboard ActivityConnect the Dots

I will be the class reporter for today

4 straight linesConnect all nine (9) dots without lifting the

writing instrument.

Springboard ActivityConnect the Dots

What is the learning point here?

Think Beyond-the-box

And that will be the subject of my presentation today.

Do not confine ourselves on the standard sometimes we need to think

outside-the-box.Look for an alternative ways to

solve our problems.

All about -

MARKETING CHANNELSSelecting and Managing

How the producer can put his products in the hands of his customers

Vocabulary:

PLACEMarketing ChannelsChannels of DistributionTrade ChannelDistribution System

More or less mean the same thing.

So, let’s get started

Marketing ChannelsSelecting and Managing

(Chapter 10 – Part 2)

Terminal objective

To understand the various aspects of Marketing Channel.

After this oral report, the class should be able to:

Any activity involved in the production and distribution of

goods and services,

Aimed to satisfy the needs and wants of

their customers.

MarketingBusines

What is the primary objective of all business enterprises?

PROFITABILITY

by selling goods and services to ultimate consumers or users

Channels of distribution(Marketing Channels) ?

rcmarin81@yahoo.com

Channels of distribution (Marketing Channel)

PRODUCER ConsumersChannel

The pipeline from producer to consumer

It is the distribution network through which a producer puts his product in

the hands of actual users.

Channel of distribution

Classification of Channels of distribution

Producers of consumer products and services

Ultimate users / consumers

DIRECT CHANNEL

Direct ChannelWhen manufacturer and customer deal directly

with each other.

There is NO MIDDLEMAN present in this type of channel.

Samples of businesses involves in direct selling

Avon Sarah Lee Boardwalk

Producers of consumer products and services

Ultimate users / consumers

Retailer

Wholesaler

Retailer

Wholesaler

Retailer

Companies producing goods on a large scale.

Usually, they sells goods through middlemen.

Indirect Channel

Wholesalers Retailers

Wholesaler acts as a middlemen in the channel of distribution as he buys

goods in large quantity from producer and sells these to retailers

in small quantities.

Wholesalers

Retailers buys goods from wholesaler and sells them directly to consumers.

Thus he acts as a direct link between the wholesaler and consumers.

Retailers

So, the two main types of channelsare:1Direct

Channel

2Indirect Channel

Selecting MARKETING CHANNEL

Is very crucial

Who’s your customers?

What is your competitive advantage?

Direct approach.

Indirect approach because direct approach is very expensive in high volume products .

Factors to be considered before selecting a suitable channel of distribution.

Considerations

Product

Considerations

Market

Considerations

Company

Factors to be considered before choosing a suitable channel of distribution.

ProductMarketCompany

Selecting Marketing Channel

Functions Performed by Middlemen

They play a significant role in company’s marketing channel.

Again,

Value Added

Transactional Function

Logical Function

Facilitation Function

Marketing Channel Functions Performed by Middlemen.

- Risk - Marketing - Administration

- Storing - Sorting - Transporting

- Financing - Information - After- sales

How Intermediaries Minimize Transactions

Let’s see . . .

RefrigeratorProduct:

Brands of Refrigerator

PAULGEORG

ERINGO

Contacts with no middlemen4 Producers x 4 Buyers = 16 contacts

Let’s try having one intermediaries

GEORGE

Contacts with ONE middlemen4 Producers + 4 Buyers = 8 contacts

That’s How intermediaries minimize

transactions

It’s a matter of simplifying the transactions.

Simplified – Break it down

“Nothing is particularly hard, if you divide it into small jobs”

- Henry Ford

MARKETING CHANNELManagement

Again, the primary objective of a business is to earn . . .

PROFIT

What we have learnt

Channel of distributionIt is the path or route along which goods move …

PRODUCER CHANNEL CONSUMERS

Various Middlemen

Wholesalers Retailers

Agents

Intermediaries

The main role is to resell the products of the manufacturer to

final customers.

They plays a significant role in the flow of products from producers to consumers and on company

profitability.

Although . . .

Therefore, it requires careful administration.

How to maximize the profit of the company ?

One way is to manage their marketing channels effectively

and efficiently.

It refers to the process of analyzing, planning, organizing,

and controlling a firm’s marketing channels.

MARKETING CHANNELManagement

Motivational Strategies

Motivational StrategiesTo induce channel member cooperation:

1. Paying higher slotting allowances.2. Offering higher trade discounts.3. Provide strong advertising and promotional

support.4. Training channel members’ salespeople and;5. Offering superior logistical support.

Questions ???

To end my presentation . . .

I’d like to share something . . .

One of the 7 secrets to success of this man .

Sells dreams

Not Products

- Impok - Invest

Again,

Thank you so much for listening!

Good day everyone . . .

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