AMITY BUSINESS SCHOOL

A

Presentation

On

DISTRIBUTION CHANNEL DECISION

(Marketing Management) Made by: AKASH SHARMA MBA

CONTENTS

1. INTRODUCTION OF CHANNELS OF DISTRIBUTION

2. TYPES OF DISTRIBUTION OF CHANNEL

3. IMPORTANCE OF DISTRIBUTION OF CHANNEL

4. STRATEGIES OF DISTRIBUTION OF CHANNEL

What areCHANNELS OF DISTRIBUTIION?

Channels of distribution that are designed to move product(goods or services) from the hands of the company to the hands of the customer.Distribution channels are also known as marketing channels or marketing distribution channels.

TYPES OF DISTRIBUTION CHANNEL

A. DIRECT DISTRIBUTION

B. INDIRECT DISTRIBUTION

DIRECT DISTRIBUTION

INDIRECT DISTRIBUTION

Indirect distribution occurs when there are middlemen within the distribution channel. The larger the number of middlemen, higher the price is likely to be for the final customer.

Why DISTRIBUTION CHANNEL is important?

1) It affects sales-if its not available it can't be sold. Most customers can't wait.

2) Distribution affects profits and competitiveness since it can contribute upto 50 percent of the final selling price of some goods. This affects cost competitiveness as well as profits since margins are squeezed by distribution costs.

3) Delivery is seen as part of the product influencing customer satisfaction. Distribution and its associated customer service play a big part in relationship marketing.

STRATEGIES OF DISTRIBUTION

VERTICAL MARKETING SYSTEM

HORIZONTAL MARKETING SYSTEM

VERTICAL MARKETING SYSTEM

It refers to a channel of distribution in which there is formal cooperation among members at the manufacturing, wholesaling, and retailing levels.

HORIZONTAL MARKETING SYSTEMIt refers to when two or more companies, not related to on another but at the same channel level, work together for a common purpose.

CONCLUSION

A Distribution channel is the network of individuals and organizations involved in getting a product or service from the producer to the customer. Distribution channels are also known as marketing channels or marketing distribution channels.