Distribution Channels
Distribution Channels
Distribution Channels
b: Economy of operations
2: Promotion
3: Contacts
4: Negotiation
5: Physical distribution
6: Financing
7: Risk taking
CHANNEL LEVELS
1: Manufacturer Consumer
Horizontal conflict
Conflict between same levels of channel
Vertical conflict
Between different levels of same channel
Conflict Management
VERTICAL MARKETING SYSTEMS
2: CONTRACTUAL VMS
A vertical marketing system in which independent firms at different levels
of production and distribution join together through contracts to obtain
more economies or sales impact than they could achieve alone.
b: Retailers co-operatives
The faster the delivery, the greater the assortment provided and the
more add on service provided, the greater the channel service level.
Type of Intermediaries
Company’s sales force
Manufacturer’s agency
Industrial distributors
Adaptive criteria
QUIZZ - 6th July 2004
1: Setting a high price for a new product to get maximum revenue from
the segments willing to pay high price with fewer but profitable sale,
is known as ________________.
Penetration Pricing/Skimming Pricing
2: Setting a price for products that must be used along with a main product
is known as _________________.
Optional Product Pricing/Captive Product Pricing