strategic function: channel design: and network strategy tactical function: warehousing design and operation : transportation management: materials management operational function information system: policies and procedures :change management
Channel of Distribution
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the factors may include logistic include the factor like warehousing,packaging and transportation while supply chain is more wider than logistic, it comprise the distribution channel between the middle man
stream channel
There can be a number of different levels to each distribution channel. There is the zero level channel, which involves distribution with no intermediaries whatsoever. For smaller markets, using a zero or one level scheme can be quite practical and effective. By Tauqueer :)
There are a number of functions of distribution channel marketing. The main use of distribution channel marketing is to provide a link between product and consumer. Other functions include information gathering, promotion, and matching. Negotiations, physical distributions, financing, and risk taking are also functions of some distribution channel marketing. All these functions are necessary for success in any market.
Customer Characteristics, Product Attributes, Type of Organization, Competition, Marketing Environmental Forces and Characteristics of Intermediaries are all factors in selecting a distribution channel.
name the eight participants in the distrjbution channel in the supply chain management
Two decisions that you would have to make when it comes to your channel strategy is the length and width of your channeling.Channel length: it is the number of different types and levels of intermediaries used in your channel strategy (i.e. wholesalers, retailers, pharmacies, etc)Channel width: it is the extent to which your channel covers the market either by distributing your product through the greatest number of intermediaries or to only oneIntensive Distribution: this strategy would be where you have the greatest number of intermediaries carry your product (all wholesalers and retailers that are willing to stock and sell your product)Selective Distribution: this strategy is where you distribute your product using a fewer amount of intermediariesExclusive distribution: this strategy is when you selling your product through only a single outlet typically only in one region
But as the number of intermediaries approaches the number of organizations in the channel, the law of diminishing returns kicks in. At that point, additional intermediaries add little new value within the channel.
The channel arrangement between Viacom and Time Warner is one of dual distribution in that they both offer the same product to consumers. The intermediaries are the stations that they offer the service.
distribution channel control
Channel management is the process by which a company and/or marketers ensure the effectiveness of its intermediaries in terms of product knowledge, sales volume and profitability. Marketers must provide their intermediaries with the tools they need to promote and sell the product effectively as well as adequate incentives to do so. The intermediary is not an employee of the marketer and cannot share the same objectives unless given some incentive to do so. There are many ways for a company to provide channel visibility; one way is to implement an automated channel POS system.Computer Market Research Ltd is a company that provides effective channel POS, inventory management, and a hosts of other automated channel management solutions. To find more information that is detailed about their products and services go towww.computermarketresearch.comAnother example for the hospitality industry would be eRevMax. It is is the most popular and powerful hotel online distribution tool. You can quickly and efficiently manage room rates, availability and restrictionsacross all connected internet distribution sites. It offers a vast network through volume-producing, branded, popular, tour-operator, specialist, discount and niche online travel agents (OTAs) as well as advertising, e-commerce, marketing and social channels. Find more information here- http://www.erevmax.comOther companies such as EverythingChannel and CCI Channel Management offer great insight on channel management best practices.
there will be no intermediaries in this type of chennel,like wholesalers .
Ensuring that the right products reach the right customers at the right time is the most crucial aspect of channels of distribution. This involves efficient logistics, effective communication, and strong relationships with intermediaries to maximize customer satisfaction and sales.
One of the most basic values provided by intermediaries is the optimization of the number of exchange relationships needed to complete transactions.