When we factor this savings due to reduced funds blockage we observe that the

When we factor this savings due to reduced funds

This preview shows page 147 - 152 out of 203 pages.

When we factor this savings due to reduced funds blockage, we observe that the net profit under the current scenario is Rs. 508 lacs (Rs. 595 lacs less Rs. 87 lacs which is 15 percent of Rs. 580 lacs) whereas the net profit under the proposed scenario would be Rs. 518.75 lacs (Rs. 554 lacs less Rs. 35.25 lacs which is 15 percent of Rs. 235 lacs), which is in fact a slight improvement over the previous figure. 147
Image of page 147
EVALUATION OF CHANNELS Additionally of course the intermediary will help in increasing the width of distribution. Thus when evaluating alternate distribution channels one has not only to look at costs, but also at the blockage of funds and benefits accruing on the overall distribution scenario. 10.2 SUMMARY Distribution Channel basically consists of a chain of intermediaries, each passing the product down the chain to the next link, before it finally reaches the consumer or end-user. This process is known as the ‘distribution chain’ or the ‘channel.’ Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the all-important end user. In any distribution chain, a number of alternate ‘channels’ of distribution may be available: Distributor, who sells to retailers Retailer (also called dealer at times), who sells to end customers. Intensive distribution – Where the majority of resellers stock the ‘product’ (with convenience products, for example, and particularly the brand leaders in consumer goods markets) price competition may be evident. Selective distribution – This is the normal pattern (in both consumer and industrial markets) where ‘suitable’ resellers stock the product. Exclusive distribution – Only specially selected resellers or authorized dealers (typically only one per geographical area) are allowed to sell the ‘product’. 148
Image of page 148
EVALUATION OF CHANNELS 10.3 SELF ASSESSMENT QUESTIONS 1. What is 'channel' in a marketing setup? 2. What is meant by intensive and selective distribution? 3. When evaluating alternative modes of distribution, what factors besides the cost of distribution should be considered? 4. Apart from improving the width of distribution, do intermediaries have any other contribution to the working of a marketing initiative? 149
Image of page 149
EVALUATION OF CHANNELS REFERENCE MATERIAL Click on the links below to view additional reference material for this chapter Summary PPT MCQ Video Lecture 150
Image of page 150
BRAND VALUATION Chapter 11 BRAND VALUATION Learning Objectives After going through this chapter you should be able to understand: Understand the concept of Brands. Appreciate why and when brands needs to be valued. Learn different methods that may be used to assess the value of particular brands. Structure: 11.1 Brand 11.2 Valuation of a Brand 11.3 Summary 11.4 Self Assessment Questions 11.1 BRAND Brand is a name, a term, a sign, a symbol, a design or a combination of any or all of them that marketers use to convey the identity of its goods/ services to customers and differentiate its own products/services from those marketed by others.
Image of page 151
Image of page 152

You've reached the end of your free preview.

Want to read all 203 pages?

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors