DISTRIBUTION CHANNEL. 1.RAW MATERIAL--  MANUFACTURER-  ---  CONSUMER =SUPPLY CHAIN.(Make and Sell View)=Selling concept where we take raw material.

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Presentation transcript:

DISTRIBUTION CHANNEL

1.RAW MATERIAL--  MANUFACTURER-  ---  CONSUMER =SUPPLY CHAIN.(Make and Sell View)=Selling concept where we take raw material productive inputs and factory capacity as starting point of Market Planning 2. CUSTOMER  MANUFACTURER  CUSTOMER = DEMAND CHAIN Here Customer is the starting point.

VALUE NETWORK Distribution Network: It is system of partnerships and alliances that a firm creates to source, augment and deliver its offerings A company instead of reaching directly to customers, they reach via some intermediaries, these intermediaries constitute Marketing Channel or Trade Channel or Distribution channel.

Types of Intermediaries: 1.Merchants: Like wholesaler, retailers who take the title of goods by buying and they resale. 2.Agents:Like brokers, or representatives who do not take the title but negotiate with customer on behalf of the manufacturer. 3.Facilitators: Who neither represent on behalf nor take title but aid the firm like transporter, bank,advt agencies etc.

Why Intermediaries are Required? 1.Geographic Reach. 2.Financial Support 3.Direct marketing not Feasible. 4.Reduce the cost of Distribution. 5.Develop Synergy.

MULTI LEVEL MARKETING *PYRAMID SELLING *NETWORK MARKETING This is a Distribution Channel where the sales Force is compensated not only for sales they personally generate but also for the sales of the other salesperson that they recruit

How it operates: 1.Buy the Kit. 2.Make members under you by convincing to buy kit. 3.Commision cheque from manufacturer. 4.Promotion to meetings and personal contacts. No advertisement of the product. Corporate advertisement.