selecting and managing marketing channels
TRANSCRIPT
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
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.
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
s
Channels of distribution (Marketing Channel)
16
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
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.
Producers of consumer products and services
Ultimate users / consumers
Retailer
Wholesaler
Retailer
Agent
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
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 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
40
JOHN
PAULGEORG
ERINGO
Contacts with no middlemen4 Producers x 4 Buyers = 16 contacts
42
JOHN
PAUL
GEORGE
RINGO
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
Channel of distributionIt is the path or route along which goods move …
PRODUCER CHANNEL CONSUMERS
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 . . .
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 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 .
