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Distribution Channels - 1

Distribution Channels - 1. MKT 405: Distribution Management M Wahidul Islam Summer 2014. What is a Distribution Channel?. A group of people and firms involves in the transfer of title or ownership as the product moves from the producer to the ultimate consumer

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Distribution Channels - 1

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  1. Distribution Channels - 1 MKT 405: Distribution Management M Wahidul Islam Summer 2014

  2. What is a Distribution Channel? • A group of people and firms involves in the transfer of title or ownership as the product moves from the producer to the ultimate consumer • “the structure of intra company organization units and extra company agents, dealers, wholesalers and retailers through which a commodity, product or service is marketed” – American Marketing Association

  3. Key Questions for Distribution Channel Who will be the Channel Members? Who is driving the Channel? What is the Channel Format? What would be the Patter of Distribution?

  4. Distribution Channel Members

  5. Distribution Channel Members • C&FA • Facilitators • Do not pay for the product or hold physical possession of the goods. Merely stores in a central location and then pass it on to the distributor • Example: Edible Oil Industries • Consignment Selling Agents (CSAs) or General Selling Agents (GSAs) • Sales the goods on behalf of the company and transfer amount to the producer • Example: Shipping Companies, Airlines Companies • Value Added Resellers • Purchases incomplete product or kit and add value to assembling it and then selling to customers • Example: Personal Computers, Bicycles,

  6. Producer • Direct Marketing Team • CSAs / GSAs • Central Distributor • Authorized Reseller • Own Branded Store • Regional / Market Specific Distributor • Wholesalers • Retailers • Customers

  7. Patters of Distribution • It represents the service level that the organization provides to its customers

  8. References • Chapter 8 – Distribution Management and the Marketing Mix • Havaldar K. and Cavale V. M. (2011) Sales and Distribution Management – Text and Cases (2nd Edition) Delhi: Tata McGraw-Hill Education Private Limited

  9. End

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