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    Marketing

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    The document discusses marketing channels of distribution. It defines marketing mix as the combination of product, price, place, and promotion that a company uses to achieve its marketing goals. It then focuses on the "place" element of the marketing mix. It defines distribution channels as the network through which a good passes until it reaches the consumer. It describes the key components of distribution channels including producers, agents, wholesalers, and retailers. Finally, it outlines different types and levels of distribution channels that companies can use, from direct zero-level channels to indirect multi-level channels involving various intermediaries.

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    Marketing

    Uploaded by

    Private Account
    14 views20 pages
    The document discusses marketing channels of distribution. It defines marketing mix as the combination of product, price, place, and promotion that a company uses to achieve its marketing goals. It then focuses on the "place" element of the marketing mix. It defines distribution channels as the network through which a good passes until it reaches the consumer. It describes the key components of distribution channels including producers, agents, wholesalers, and retailers. Finally, it outlines different types and levels of distribution channels that companies can use, from direct zero-level channels to indirect multi-level channels involving various intermediaries.

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    The document discusses marketing channels of distribution. It defines marketing mix as the combination of product, price, place, and promotion that a company uses to achieve its marketing goals. It then focuses on the "place" element of the marketing mix. It defines distribution channels as the network through which a good passes until it reaches the consumer. It describes the key components of distribution channels including producers, agents, wholesalers, and retailers. Finally, it outlines different types and levels of distribution channels that companies can use, from direct zero-level channels to indirect multi-level channels involving various intermediaries.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    14 views20 pages

    Marketing

    Uploaded by

    Private Account
    The document discusses marketing channels of distribution. It defines marketing mix as the combination of product, price, place, and promotion that a company uses to achieve its marketing goals. It then focuses on the "place" element of the marketing mix. It defines distribution channels as the network through which a good passes until it reaches the consumer. It describes the key components of distribution channels including producers, agents, wholesalers, and retailers. Finally, it outlines different types and levels of distribution channels that companies can use, from direct zero-level channels to indirect multi-level channels involving various intermediaries.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 20

    MARKETING

    CHANNEL OF
    DISTRIBUTION
    CONCEPT OF MARKTING MIX

    The tools or ingredients or the variables mixed together by the marketers to


    interact with a specific market are known as Marketing Mix. It is the
    essence of any marketing endeavour and is the main building block of the
    marketing efforts of an organisation. The concept of marketing says that on
    the side there is the producer or marketer and on the other side there is the
    customer. The organisation wants to have a transaction with the customers
    and to do so it has to first develop or produce a product or service, design it,
    pack it, price it, name it, label it, promote it, and distribute it. Every one of
    these decisions is the core of a marketing mix, which consists of four
    elements; viz., Product, Price, Place, and Promotion. 
    According to Philip Kotler, “Marketing mix are the set of marketing tools that firm
    uses to pursue its marketing objectives in the target market.”

    According to William J. Stanton, “Marketing mix is the term used to describe the


    combination of four inputs which constitute the core of a company’s marketing system,
    the product, the price structure, the promotional activities and the distribution system.”
    Click icon to add picture

    4 P’S OF MARKETING
    Place/Physical Distribution
    It is essential to make the product or service available to the customer at the right place and at the
    right time, then only the customer would be able to purchase the product or service. Place is an
    element of marketing and is a process of transferring goods from the place of production to the
    place of consumption. Therefore, Place Mix is an important decision and is related to the physical
    distribution of the goods and services to the customers. The decisions under place mix include
    deciding the market for distribution, the channel of distribution, etc. Hence, the place mix consists
    of Channels of Distribution and Physical Movement of Goods. The two different channels of
    distribution are direct channel and indirect channel. And the components of physical distribution
    include order processing, transportation, warehousing, and inventory. 

    PLACE & DISTRIBUTION


    WHAT IS CHANNEL OF DISTRIBUTION?

    • A distribution channel is the network of businesses or intermediaries


    through which a good or service passes until it reaches the final buyer or
    the end consumer. Distribution channels can include wholesalers, retailers,
    distributors, and even the internet.
    0BJECTIVES OF DISTRIBUTION CHANNEL

    • To increase the availability of the product to the potential


    customers.
    • To fulfill customer’s requirements by providing quality rich
    services.
    • To obtain promotional support from channel members.
    • To procure timely and detailed market information.
    • To increase cost-effectiveness.
    FUNCTIONS OF CHANNEL OF DISTRIBUTION
    COMPONENTS OF CHANNEL OF DISTRIBUTION

    • Producer: Producers combine labor and capital to create goods and services for
    consumers.
    • Agent: Agents commonly act on behalf of the producer to accept payments and
    transfer the title of the goods and services as it moves through distribution.
    • Wholesaler: A person or company that sells large quantities of goods, often at low
    prices, to retailers.
    •  Retailer: A person or business that sells goods to the public in small quantities for
    immediate use or consumption.
    • End Consumer: A person who buys a product or service.
    Factors Influencing Choice of Distribution Channels

    • Market Consideration:
    Size of the Customer, potential volume of sales, concentration of
    buyers, size of the purchase order, and so forth are some of the factors
    which are considered before choosing the distribution channel.

    • Product Considerations:
    Factors related to perishability, bulkiness, product value, etc. related to
    the product are taken into consideration while making a choice
    between the channels of distribution.
    Factors Influencing Choice of Distribution Channels

    • Middlemen Considerations:
    Types of intermediaries, services provided by middlemen, the
    attitude of middlemen, availability of middlemen, and channel
    competition are the factors that influence the choice of channel.

    • Company Considerations:
    Cost of distribution, management’s ability, services provided by
    seller, long-run effect on profit, the extent of channel control,
    financial resources, and experience and ability are the company
    considerations.
    TYPES OF DISTRIBUTION CHANNELS

    There are 2 types of channels:

    • Direct

    A direct channel allows the consumer to make purchases from the manufacturer. This
    direct, or short channel, may mean lower costs for consumers because they are buying
    directly from the manufacturer.
    • Indirect

    An indirect channel allows the consumer to buy the goods from a wholesaler or retailer.
    Indirect channels are typical for goods that are sold in traditional brick-and-mortar
    stores.
    LEVELS OF DISTRIBUTION CHANNELS
    1.ZERO LEVEL
    This is a direct-to-consumer model where the producer sells its product directly to the end
    consumer. Amazon, which uses its platform to sell Kindles to its customers, is an example of a
    direct model. This is the shortest distribution channel possible, cutting out both the
    wholesaler and the retailer.
    LEVELS OF DISTRIBUTION CHANNELS

    2.ONE LEVEL CHANNEL


    A producer sells directly to a retailer who sells the product to the end
    consumer. This level includes only one intermediary. HP or Dell are large
    enough to sell their computer products directly to reputable retailers such as
    Best Buy.
    LEVELS OF DISTRIBUTION CHANNELS

    3.TWO LEVEL CHANNEL


    A most commonly used channel of distribution that involves two intermediaries for the sale of products is known as
    Two Level Channel. The intermediaries involved are wholesalers and retailers. The producer sells their products to
    wholesalers in bulk quantity, who sells them to small retailers, who ultimately supply the products to the customers.
    This channel is generally used to sell convenient goods like soaps, milk, milk products, soft drinks, etc. For
    example, Hindustan Unilever Limited sells its goods like detergent, tea leaves, etc., through wholesalers and retailers.  
    LEVELS OF DISTRIBUTION CHANNEL

    4.THREE LEVEL CHANNEL


    Three level channel means that there are three intermediaries involved between the manufacturer and the
    customer for the sale of products. The three intermediaries involved are Agent Distribution,
    Wholesalers, and Retailers. It is usually used when the goods are distributed across the country and for
    that different distributors are appointed for different areas. For example, wholesalers purchase goods
    from different distributors, like North India Distributors and then pass the goods to the retailers, who
    ultimately sell the goods to customers.
    THANK YOU
    PRESENTATION BY:
    MISS.SHRUTI BHAGWAT

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