1. Formulating channel strategy
Channel participants

2. What is a marketing channel
A marketing channel is a set of interdependent organisations involved in the process of making a product or service available for use or consumption

3. Key members of marketing channels
Manufacturer
Producer of product or service being sold
Intermediaries
Means channel member other than manufacturer or end user (wholesaler, retailer)
End users

4. Why marketing channels
Demand-side factors
Facilitating the search
Assortment
Sorting
Accumulation
Bulk breaking
Supply side factors
Routinisation of transactions
Reduction in no. of contacts
Carry inventory
Demand creation
Extend credit to end users
service

5. Marketing flows Physical possession Ownership Promotion Negotiation
Financing
Risking
Ordering
Payment

6. “Service outputs”
Value added services created by channel members along with the product purchased by consumers are called service outputs
Typical service outputs include bulk breaking, spatial convenience, waiting and delivery time, assortment etc.

7. Choosing the right distributor
What marketing functions to assign
Product line
Fragmented channels
Specialized products
Size and type of the distributor
Large and reputed distributors
Small distributors
Exclusive or multiple distribution
How to divide selling function b/w company sales team and distributors
House accounts and distributor accounts
Distribution policies

8. Physical distribution and customer care
Marketing logistics
Physical distribution and customer care

9. Logistics
In the business area, Logistics refers to the interrelation and management of all the activities involved in making products and raw materials available for manufacturing and in providing finished products to the customers when, where and how they are desired

10. Various logistical cost centres are
Transportation
Inventory management
Warehousing
Material handling
Order processing

11. transportation Mode and carrier selection Carrier routing
Road
Rail
Air
Pipeline
waterways
Carrier routing
Vehicle scheduling

12. Inventory management Inventory carrying cost
Inventory acquisition cost
Inventory service cost such as insurance
Storage space costs
Inventory risk cost

13. warehousing Private or public facilities Site location Market centered
Production centered
Intermediate

14. TERIMAKASIH