CHANNELS OF DISTRIBUTION

AND PROMOTION
• Marketing channel is a set of practices or activities necessary to
transfer the ownership of goods, and to move goods, from the point of
production to the point of consumption and, as such, which consists of
all the institutions and all the marketing activities in the marketing
process.

• According to Stanton , “ A distribution channel consists of the set of

people and firms involved in the transfer of title to a product as the
product moves from producer to ultimate consumer or business user .”
 TYPES OF CHANNELS
1. Conventional Marketing Channels
• Producer – manufacturer- Consumer or Zero level Channel
or Direct Channel
• Producer – Retailer _Consumer Channel or level one
channels
• Manufacture – Wholesaler – Retailer – Consumer channel ,
or Two level channel
• Producer – Agent – Middleman – Wholesaler – Retailer –
Consumer Channel , or Three level channel
 2. VERTICAL INTEGRATED MARKETING
CHANNELS ( VMS ) OR MODERN CHANNELS OF
DISTRIBUTION
• Corporate system

• Contractual system

• Administered system
 FACTORS INFLUENCING SELECTION OF
• Nature of Product
DISTRIBUTION CHANNEL IN
• Customer Characteristics MARKETING
• Nature of Market
• Cost Consideration
• Time
• Availability of Middleman
• Competition
• Technological Factors
• Consumption Pattern
• Other Factors
 MARKETING CHANNEL DESIGN

• A marketing channel is a set of interdependent

organizations involved in the process of making a product

or service available for use or consumption.

 PRIMARY FUNCTIONS OF CHANNEL
MEMBERS

• To be a stockiest of your product

• To represent your brand in the market place

• To gather marketing intelligence

• To assume risk

• To deliver product and offer post-sales support

• To add value to the sale

 FORMULATING CHANNEL
STRATEGY

• Designing the channel structure

• Identify the major channel alternatives

• Training
 1. DESIGNING THE CHANNEL
STRUCTURE
• Determine the channel
• Analysing the service output objectives and constraints
levels desired by customers
• Channel objectives
• Lot size
• product characteristics
• Product variety
• Target market
• Service backup
• Company characteristics
• Waiting time • Characteristics of intermediaries

• Spatial convenience • Competitor’s channel

• Environmental factors
 2. IDENTIFY THE MAJOR CHANNEL
ALTERNATIVES
• A. Types of intermediaries

• B. The number of intermediaries need

• C. The terms and responsibilities of each channel member.

• D. Evaluate the major channel alternatives

 TYPES OF INTERMEDIARIES

•Agent
•Wholesalers
•Distributors
•Retailers
 NUMBER OF INTERMEDIARIES

• Exclusive distribution

• Selective distribution

• Intensive distribution
 TERMS AND RESPONSIBILITIES OF
CHANNEL MEMBERS

• Price policy

• Conditions of sale

• Distributor’s territorial rights

• Mutual services and responsibilities

 EVALUATE THE MAJOR CHANNEL
ALTERNATIVES

• Economic criteria

• Control criteria

• Adaptive criteria
 3.TRAINING

• Training it is a process of providing the intermediaries with specific

skills for performing their task better and helping them to correct

deficiencies in their sales performance

 PHASES OF DEVELOPING AND
CONDUCTING TRAINING

• Successful program consist of four phases

• Training assessment

• Program design

• Reinforcement

• Evaluation
 WHAT SHOULD THE CONTENT OF THE
TRAINING BE?
• Attitude toward selling and toward training

• Knowledge of the company

• Product knowledge and application

• Knowledge of competitive products

• Knowledge of customers knowledge of business principles

• Selling skills

• Relationship-building skills
 PROMOTION MIX STRATEGY

• Promotion is one of the market mix elements, and a term used frequently

in marketing. There are different ways to promote a product in different

areas of media.
 ELEMENTS OF PROMOTION

• Advertising

• Personal selling

• Sales promotion

• Public relations

• Direct Marketing
 CONSUMER SALES PROMOTIONS

• Free samples • Point of Purchase Displays

• Coupons • Trade Shows
• Exchange scheme • Demonstrations and Personal
• Discounts Appearances
• Premium offers
• Personality promotions
• Instalment sales
• Trade-In
• Contests and Sweepstakes
 WHAT ARE THE MAIN PURPOSES /
• Communicates information
FUNCTIONS OF ADVERTISING?
• Creates ground for personal selling
• Educates people
• Creates and extends demand
• Creates image for the product or service
• Builds goodwill
• Obtain dealer support:
• Counters competition
 TYPES OF ADVERTISING

• INDOOR ADVERTISING MEDIA.

• NEWSPAPERS
• MAGAZINES
• .RADIO
• TELEVISION
• FILM ADVERTISING
OUT-DOOR ADVERTISING MEDIA
 FACTORS AFFECTING MEDIA
• Nature of product SELECTIONS
• Nature of customers .
• Distribution of product
• Advertising objectives
• Nature of message
• Size of ad-budget
• Media used by competitors
• Media – availability :-
• Media reach and coverage
• Media cost:-
• Media frequency
• Media image
 ADVERTISING LAYOUT

• 1)Headlines
• 2) Illustrations and colours
• 3)Text
• 4) Advertiser or sponsor
• and 5) Black or white space and the border
 ADVERTISING COPY

• The term ‘copy’ covers all items appearing in an advertisement,the written

words, pictures, design, label and logo.It is prepared by an expert copy
writer. It is written or spoken material of advertising communication and
includes the headline, name and address of advertiser, as well as the main
text of the message
 FOUR BASIC STEPS IN SELLING
• : 1)attracting attention, 2) developing interest, 3)arousing desire, and
4)finally, generating action, the so-called AIDA formula
 ELEMENTS OF GOOD ADVERTISING
COPY

• 1)Attention value,
• 2)Suggestive value,
• 3)Memorising value,
• 4)Conviction value,
• 5)Sentimental appeal value,
• 6)Educational value,
• and 7)Instinctive appeal value.
 ATTENTION VALUE
• the advertisement copy must be designed in such a way that is should be for
the eye of the beholder and make him halt for a whileto read it.
• Use of pictures
• Appropriate heading
• Borders
• Leaving space
• Underlining of key words
• Price quotation
• Colour
 PERSONAL SELLING

• Personal selling is a paid two way communication to persuade customers

through information to buy products in an exchange situation
 ADVANTAGES OF PERSONAL
SELLING
• specific communication targeted at one or specific individuals
• Greater impact on customers
• Due to immediate feedback, message may be adjusted.
• Responds to customers’ needed information.