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Marketing Channels. Session-8. Just Have a Look. Why Channel. Producer. Consumer. Advertisements, commissions, Bonuses, Channel Discounts etc. account for distribution channel costs, which is passed on to consumers. Channel Development. Role of Marketing Channels.
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Marketing Channels Session-8
Why Channel Producer Consumer Advertisements, commissions, Bonuses, Channel Discounts etc. account for distribution channel costs, which is passed on to consumers.
Role of Marketing Channels • Producers Lack Financial Resources and Expertise to deal with Consumers. • Direct Marketing would not be possible • More prudent to focus on one’s core business rather than distribution.
Channel Design Decisions • Analyzing Customer Needs • Lot size, • service level output, • product variety. • Establishing Channel Objectives and Constraints. • Objectives may vary with conditions. • Different products require different distribution channels.
Channel Design Decision. • Identifying Major Channel Alternatives. • Type of Intermediaries • Number of Intermediaries. • Exclusive distribution. • Selective distribution • Intensive distribution • Terms and Responsibilities of Channel Members • Price policy, sales conditions, territorial rights, Service Responsibilities • Evaluating Alternatives • Economic Criteria, • Control
Channel Management • Selecting Channel Members • Experience. • Growth. • Profitability. • Management. • Resources • Operation Area
Channel Management • Training and Motivation • Skill Development. • Commission • Bonuses • Shared Advertisement Expenses. • Negative Sanctions • Penalty. • Termination • Evaluating Channels • Evaluate against performance standards, • Modifying Distribution Channel • eTicketing etc.
Channel Conflict • Types of Conflict • Vertical channel conflict • Horizontal channel conflict • Multichannel conflict • Causes of Channel Conflict • Goal incompatibility • Unclear roles and rights • Differences in perception
Reducing Inefficiencies of Distribution Channel • How do you think we can reduce the distribution channel leakage? • Technological Intervention? • Educating the Consumers? • Direct Marketing? • Any other Innovation?
Excersice • Nepali Masuara and Gundruk in Kathmandu. • Solar Power Table Lamps. • Non Stick Kitchenware. • Fresh Farm Milk.