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    Channel Function and Flows, Channel Levels, Module 7

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    shravya kotian
    This document discusses channel functions, flows, levels, and design decisions. It outlines five important channel flows: product, negotiation, ownership, information, and promotion. It describes the key functions of a marketing channel as moving goods from producers to consumers by overcoming time, place, and possession gaps. Channel levels include consumer and industrial marketing channels ranging from zero-level direct marketing to three-level channels. Channel design decisions involve analyzing consumer needs, setting objectives, identifying alternatives based on intermediaries, distribution intensity, and responsibilities.

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    Channel Function and Flows, Channel Levels, Module 7

    Uploaded by

    shravya kotian
    55 views6 pages
    This document discusses channel functions, flows, levels, and design decisions. It outlines five important channel flows: product, negotiation, ownership, information, and promotion. It describes the key functions of a marketing channel as moving goods from producers to consumers by overcoming time, place, and possession gaps. Channel levels include consumer and industrial marketing channels ranging from zero-level direct marketing to three-level channels. Channel design decisions involve analyzing consumer needs, setting objectives, identifying alternatives based on intermediaries, distribution intensity, and responsibilities.

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    This document discusses channel functions, flows, levels, and design decisions. It outlines five important channel flows: product, negotiation, ownership, information, and promotion. It describes the key functions of a marketing channel as moving goods from producers to consumers by overcoming time, place, and possession gaps. Channel levels include consumer and industrial marketing channels ranging from zero-level direct marketing to three-level channels. Channel design decisions involve analyzing consumer needs, setting objectives, identifying alternatives based on intermediaries, distribution intensity, and responsibilities.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    55 views6 pages

    Channel Function and Flows, Channel Levels, Module 7

    Uploaded by

    shravya kotian
    This document discusses channel functions, flows, levels, and design decisions. It outlines five important channel flows: product, negotiation, ownership, information, and promotion. It describes the key functions of a marketing channel as moving goods from producers to consumers by overcoming time, place, and possession gaps. Channel levels include consumer and industrial marketing channels ranging from zero-level direct marketing to three-level channels. Channel design decisions involve analyzing consumer needs, setting objectives, identifying alternatives based on intermediaries, distribution intensity, and responsibilities.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 6

    CHANNEL FUNCTION AND

    FLOWS, CHANNEL LEVELS,


    CHANNEL DESIGN DECISIONS.
    - PRESENTATION BY SHRAVYA
    CHANNEL FLOWS

    One traditional framework that has been used to express the channel mechanism is the concept of
    flow. These flows reflect the many linkages that tie channel members and other agencies together in
    the distribution of goods and services. From the perspective of the channel manager, there are five
    important flows.
    • Product flow
    • Negotiation flow
    • Ownership flow
    • Information flow
    • Promotion flow
    • Monster Channel Flow
    CHANNEL FUNCTIONS AND FLOWS

    • A marketing channel performs the work of moving goods from producers to


    consumers. It overcomes the time, place, and possession gaps that separate goods
    and services from those who need or want them. Members of the marketing channel
    perform a number of key functions.
    • Some of these functions (storage and movement, title, and communications)
    constitute a forward flow of activity from the company to the customer; others
    (ordering and payment) constitute a backward flow from customers to the
    company.
    • A manufacturer selling a physical product and services might require three
    channels: a sales channel, a delivery channel, and a service channel.
    CHANNEL LEVELS – CONSUMER AND INDUSTRIAL MARKETING CHANNELS

    Channel levels consist of consumer marketing channels or the industrial marketing channels. A factor common among both
    channel levels is that both include the producer as well as the end customer.
    •
    1) Zero Level channel / Direct Marketing Channel
    Consists of a manufacturer directly selling to the end consumer. This might mean door to door sales, direct mails or telemarketing. 
    Dell online sales is a perfect example of a zero level channel marketing. 
    • 2) One Level channel
    As the name suggests, the one level channel has an intermediary in between the producer and the consumer. An example of this
    can be insurance in which there is an insurance agent between the insurance company and the customer. Even E-commerce is an
    excellent one channel level example – wherein the companies tie up directly with E-commerce portals and then sell in the market.
    • 3) Two level Channel
    Two level channel involves the movement of goods from the company to an intermediary, from from the intermediary to another
    and then to customer. This is also commonly known as “breaking the bulk” in FMCG market. A widely used two level marketing
    channel especially in the FMCG and the consumer durables industry which consists of a wholesaler and a retailer. So the goods
    go from company to distributor, distributor to retailer and retailer to consumer.
    • 4) Three level channel
    Again observed in both the FMCG and the consumer durables industry, the three level channel can combine the roles of a
    distributor on top of a dealer and a retailer. The distributor stocks the most and spreads it to dealers who in turn give it to retailers.
    CHANNEL DESIGN DECISIONS
    1. Analyzing consumer needs
    2. Setting channel objectives
    3. Identifying major alternatives
     types of intermediaries
     The number of marketing intermediaries
    Intensive distribution
    Exclusive distribution
    Selective distribution
    Responsibilities of channel members
    CHANNEL DESIGN DECISIONS
    CONTIN….
    4.Evaluating the major alternatives :There’re three core factors that will affect the
    channel –
    • Economic
    • Control
    • Adaptability criteria

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