Sales and Distribution Management


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Chapter Code: SDMC18
Pages : 514; Paperback;
210 X 275 mm approx.

Suggested Case Studies

Pages : 352; Paperback;
210 X 275 mm approx.

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Managerial Effectiveness: Managing the Self and Others

Marketing Channels : Overview

A marketing channel acts as a differentiating factor and provides businesses with a competitive advantage. Marketing channels comprise several individuals and interdependent organizations that facilitate the process of making a product or service available to end users. Marketing channels have evolved over time, from being production-oriented to customer- centric.. The evolution of marketing channels has primarily been a response to changes taking place in businesses due to the environment.

Channel members play a dominant role in moving products across the marketing channel. They facilitate the search process of buyers and sellers. They also perform the role of sorting, making transactions routine and contractual efficiency.

In addition, marketing channels perform several functions. These involves all activities that facilitate the flow of products from the manufacturer to the end user.

As the product moves through different stages, different members in the distribution channel perform the functions of exchange, logistics and other supporting functions.

Designing an appropriate marketing channel is crucial to the success of a business. The channel design has to be meticulously planned taking into consideration the channel functions and other strategic business objectives. The most important elements in channel design are channel structure, channel intensity and the type of intermediaries at each level.

Marketing channels ensure the smooth flow of products between channel members. In the process, a marketing channel witnesses eight basic types of flows. These are flow of possession, ownership, promotion, negotiation, financial, risk, ordering and payment. Each flow is associated with certain costs. Therefore, it is necessary that marketing channels be designed to eliminate redundancy of flows.

Chapter 18 : Overview

Evolution Of Marketing Channels
The Production Era
The Sales Era
The Marketing Era
Relationship Marketing Era

Channel Members and Their Roles
Roles of Channel Members

Channel Functions

Designing Marketing Channels
Channel Structure
Channel Intensity
Types of Channel Intermediaries at Each Level

Channel Flows and Costs