16-05-2014, 03:45 PM
DISTRIBUTION CHANNEL
DISTRIBUTION CHANNEL[.ppt (Size: 277.5 KB / Downloads: 15)
“ the path or pipeline through which goods and services flow in one direction from manufacturer to consumer and the payments generated by them flow in the opposite direction from consumer to manufacturers”
IMPORTANCE OF DISTRIBUTION CHANNEL
Profit Realization
Proper and targeted branding at “point of sale”
Consumer convenience
Information &feedback on product or services
1. AVAILABILITY OF PRODUCT
The primary job of distribution channel is to insure the availability of products and services to end consumer. The product nature decide the distribution channel’s responsibility to make this product available to end consumer for usage and consume.
2. COST EFFECTIVE
The company work hard to keep the distribution cost minimum . In some products transportation and distribution cost are too high . This creates impact on the price of the product. The effective distribution channel keeps the cost at low level.
3.PRICE STABILITY
This is the point wherein company try to maintain the price but most of the time distribution channel absorb the price fluctuation and maintain the price in the market.
Establishing objectives and constraints
Marketer objectives state their channel objectives in terms of targeted services output levels. Under competitive conditions , channel institutions should arrange their functional tasks to desired levels of services output.
Evaluating channel members
Sale quota attainment
Average inventory level
Customer delivery time
Treatment of damaged and lost goods
Cooperation in promotional and training programes.