Marketing Management, Section-A

Md. Nur-E-Alam Siddique

Senior Lecturer, Faculty of Business, ASAUB
Developing Distribution Strategies: Channel Management, Retailing and Wholesaling:
# Logistics, Supply Chain and Physical Distribution
Distribution Channel: A set of interdependent organizations involved in the process of making a
product or service available for use or consumption by the consumer or business user.
Types of Channel:
1. Direct Channel- A channel consisting only of producer and final customer, with no
middlemen providing assistance, is called direct channel.
2. Indirect Channel-A channel of producer, final customer, and at least one level of
middlemen represents indirect channel.
# Channel Management Decisions
1.
2.
3.
4.

Selecting channel members

Training and motivating channel members
Evaluating channel members
Modifying channel members

# Channel systems:
1. Vertical Marketing Systems (VMS)- i) Corporate VMS ii) Administered VMS iii)
Contractual VMS
2. Horizontal Marketing Channels (HMS)
3. Multichannel Marketing Systems (MMS)

# Retailing:
Retailing includes all the activities in selling goods or services directly to consumers for personal,
nonbusiness use.
# Retailer:
A Retailer or retail store is any business enterprise whose sales volume comes primarily from
retailing.

# Types of Retailers:
A. Store Retailing

B.
1.
2.
3.
4.

1. Specialty store
2. Department store
3. Super market
4. Convenience store
5. Discount store
6. Off-price-retailer
7. Super store
8. Catalog showroom
Nonstore retailing:
Direct selling
Direct marketing
Automatic vending
Buying service

# The new retail environment and challenges:

1. New retail forms and combinations
2. Growth of inter type competition
3. Competition between store-based and nonstore-based-retailing
4. Growth of giant retailers
5. Decline of middle market retailers
6. Growing investment in technology
7. Global profile of major retailers
# Levels of Services in Retailing:
1. Self-service
2. Self-selection
3. Limited service
4. Full service
# Positioning through Retail Marketing Decisions:
1. Target market
2. Product assortment
3. Procurement
4. Prices
5. Services
6. Store atmosphere
7. Store activities and experiences
8. Communications
9. Location decisions

Wholesaling:
Wholesaling includes all the activities in selling goods or services to those who buy for resale or business use.
# Wholesaling Functions:
1. Selling and promoting

2.
3.
4.
5.
6.
7.
8.
9.

Buying and assortment building

Bulk breaking
Warehousing
Transportation
Financing
Risk bearing
Market information
Management service and counseling

# Types of Wholesaler:
1.
2.
3.
4.
5.
6.

Merchant wholesaler
Full service wholesaler
Limited service wholesaler
Brokers and agent
Manufacturers brances and offices
Specialized wholesalers

Chapter Questions:
1.
2.
3.
4.
5.
6.
7.
8.

What are the stages of channel management process?

Discuss different type of channel system with relevant example.
Explain different types of retailing with relevant example.
What are the challenges of new retail environment? Discuss.
Discuss different levels of retail services.
How can a company position its outlet through retail marketing decisions?
Describe the functions of wholesaling.
Discuss different type of wholesaling with relevant example.