Channel Management

1. ` PLACING -I P R O D U C E R C O N S U M E R

2.  Placing (I) - Channel Management MANOJ H RAHUL KHEDKAR RISHIRAJ SINGH ASHIYA SHAHUL HAMEED VAMSY KRISHNA IIM RAIPUR INDIAN INSTITUTE OF MANAGEMENT RAIPUR

3. AGENDA 12/12/2012 Indian Institute of Management Raipur 3 CONCEPT CHANNELS TYPES ROLES FUNCTIONS SELECTION

4. DISTRIBUTION 12/12/2012 Indian Institute of Management Raipur 4 , CONCEPT CHANNELS TYPES ROLES FUNCTIONS SELECTION It is defined as the management of all activities which facilitate movement and co-ordination of supply and demand in creation of time, place utility in goods

5. DISTRIBUTION 12/12/2012 Indian Institute of Management Raipur 5 , CONCEPT CHANNELS TYPES ROLES FUNCTIONS SELECTION It is the Art and Science of determining requirements, acquiring them, distributing them and finally maintaining them in an operationally ready condition for their entire life

6. TYPES OF DISTRIBUTION 12/12/2012 Indian Institute of Management Raipur 6 , CONCEPT CHANNELS TYPES ROLES FUNCTIONS SELECTION

7. CHANNELS The path through which goods and services travel from the vendor to the consumer or payments for those products travel from the consumer to the vendor 12/12/2012 Indian Institute of Management Raipur 7 , CONCEPT CHANNELS TYPES ROLES FUNCTIONS SELECTION

8. , CHANNELS CONCEPT TYPES ROLES FUNCTIONS SELECTION 12/12/2012 Indian Institute of Management Raipur 8 MANUFACTURER MANUFACTURER MANUFACTURER CUSTOMER CUSTOMER RETAILER RETAILER WHOLESALER CUSTOMER MANUFACTURER RETAILER WHOLESALER CUSTOMER AGENTS CHANNELS

9. 12/12/2012 Indian Institute of Management Raipur 9 MANUFACTURER CUSTOMER MANUFACTURER CUSTOMER RETAILER

10. 12/12/2012 Indian Institute of Management Raipur 10 MANUFACTURER RETAILER WHOLESALER CUSTOMER

11. CHANNEL FLOW Goods/ Services Payment for Goods/ Returns Information FORWARD BACKWARD BOTH WAYS CUSTOMERS COMPANY MANUFACTURER , CHANNELS CONCEPT TYPES ROLES FUNCTIONS SELECTION

12. 12/12/2012 Indian Institute of Management Raipur 12 INTERMEDIARIES CHANNELS AGENTS DISTRIBUTORS RETAILERS WHOLESALERS INTERMEDIARIES

13. INTERMEDIARIES Links producers to other intermediaries or the ultimate buyer. Promote, sell, and make-available a good or service through contractual arrangements or purchase and resale of the item. Each intermediary receives the item at one pricing point and moves it to the next higher pricing point until the item reaches the final buyer 12/12/2012 Indian Institute of Management Raipur 13 INTERMEDIARIES CHANNELS AGENTS DISTRIBUTORS RETAILERS WHOLESALERS

14. AGENTS An independent individual or company Primary selling arm of the producer and represent the producer to users. Agents take possession of products but do not actually own them . Make profits from commissions or fees paid for the services they provide to the producer and users. 12/12/2012 Indian Institute of Management Raipur 14 INTERMEDIARIES CHANNELS AGENTS DISTRIBUTORS RETAILERS WHOLESALERS

15. WHOLESALERS Independently owned firms that take title to the merchandise they handle. In other words, the wholesalers own the products they sell. Wholesalers purchase product in bulk and store it until they can resell it. Wholesalers generally sell the products they have purchased to other intermediaries, usually retailers, for a profit. 12/12/2012 Indian Institute of Management Raipur 15 INTERMEDIARIES CHANNELS AGENTS DISTRIBUTORS RETAILERS WHOLESALERS

16. DISTRIBUTORS Distributors only carry complementary product lines, either Pepsi or Coke products. Distributors usually maintain close relationships with their suppliers and customers. Distributors will take title to products and store them until they are sold Eg : Maruti distributor 12/12/2012 Indian Institute of Management Raipur 16 INTERMEDIARIES CHANNELS AGENTS DISTRIBUTORS RETAILERS WHOLESALERS

17. RETAILERS A retailer takes title to, or purchases, products from other market intermediaries. Retailers can be independently owned and operated, like small “mom and pop” stores, or they can be part of a large chain, like Walmart . The retailer will sell the products it has purchased directly to the end user for a profit 12/12/2012 Indian Institute of Management Raipur 17 INTERMEDIARIES CHANNELS AGENTS DISTRIBUTORS RETAILERS WHOLESALERS

18. TYPES 12/12/2012 Indian Institute of Management Raipur 18 CONCEPT CHANNELS TYPES ROLES FUNCTIONS SELECTION

19. INTENSIVE 12/12/2012 Indian Institute of Management Raipur 19 CONCEPT CHANNELS TYPES ROLES FUNCTIONS SELECTION

20. SELECTIVE 12/12/2012 Indian Institute of Management Raipur 20 CONCEPT CHANNELS TYPES ROLES FUNCTIONS SELECTION

21. EXCLUSIVE 12/12/2012 Indian Institute of Management Raipur 21 CONCEPT CHANNELS TYPES ROLES FUNCTIONS SELECTION

22. ROLES 12/12/2012 Indian Institute of Management Raipur 22 CONCEPT CHANNELS TYPES ROLES FUNCTIONS SELECTION PROMOTION NEGOTIATION INFORMATION ORDERING PHYSICAL POSSESSION RISK TAKING FINANCING TRANSFER OF TITLE

23. PROMOTION Marketing intermediaries attract customers and persuade them to buy goods and services. These intermediaries undertake sales promotion activities through media and personal contacts 12/12/2012 Indian Institute of Management Raipur 23 PROMOTION NEGOTIATION INFORMATION ORDERING PHYSICAL POSSESSION RISK TAKING FINANCING TRANSFER OF TITLE ROLES

24. PROMOTION 12/12/2012 Indian Institute of Management Raipur 24 PROMOTION NEGOTIATION INFORMATION ORDERING PHYSICAL POSSESSION RISK TAKING FINANCING TRANSFER OF TITLE ROLES

25. NEGOTIATION Intermediaries or middlemen negotiate prices and other terms and condi­tions between buyer and seller. No sale can take place without an agreement on prices and other terms and conditions 12/12/2012 Indian Institute of Management Raipur 25 PROMOTION NEGOTIATION INFORMATION ORDERING PHYSICAL POSSESSION RISK TAKING FINANCING TRANSFER OF TITLE ROLES

26. NEGOTIATION 12/12/2012 Indian Institute of Management Raipur 26 PROMOTION NEGOTIATION INFORMATION ORDERING PHYSICAL POSSESSION RISK TAKING FINANCING TRANSFER OF TITLE ROLES

27. INFORMATION Middlemen collect information about demand, competition , etc., from consumers and pass on to manufacturers. They also provide information to consumers about new products, changes in design, style, prices, etc., of existing products 12/12/2012 Indian Institute of Management Raipur 27 PROMOTION NEGOTIATION INFORMATION ORDERING PHYSICAL POSSESSION RISK TAKING FINANCING TRANSFER OF TITLE ROLES

28. INFORMATION 12/12/2012 Indian Institute of Management Raipur 28 PROMOTION NEGOTIATION INFORMATION ORDERING PHYSICAL POSSESSION RISK TAKING FINANCING TRANSFER OF TITLE ROLES

29. ORDERING 12/12/2012 Indian Institute of Management Raipur 29 WHOLESALERS RETAIL OUTLETS PROMOTION NEGOTIATION INFORMATION ORDERING PHYSICAL POSSESSION RISK TAKING FINANCING TRANSFER OF TITLE ROLES Intermediaries collect small orders from consumers and on that basis place large orders with manufacturers

30. PHYSICAL POSSESSION Middlemen take possession of goods from producers and pass on possession to consumers 12/12/2012 Indian Institute of Management Raipur 30 PROMOTION NEGOTIATION INFORMATION ORDERING PHYSICAL POSSESSION RISK TAKING FINANCING TRANSFER OF TITLE ROLES

31. TRANSFER OF TITLE Middlemen transfer ownership of goods from producers to consumers 12/12/2012 Indian Institute of Management Raipur 31 PROMOTION NEGOTIATION INFORMATION ORDERING PHYSICAL POSSESSION RISK TAKING FINANCING TRANSFER OF TITLE ROLES

32. FINANCING Intermediaries provide financial, assistances at different stages of the market­ing channel. They buy goods in cash from producers and sell them to consumers on credit 12/12/2012 Indian Institute of Management Raipur 32 PROMOTION NEGOTIATION INFORMATION ORDERING PHYSICAL POSSESSION RISK TAKING FINANCING TRANSFER OF TITLE ROLES

33. RISK TAKING 12/12/2012 Indian Institute of Management Raipur 33 PROMOTION NEGOTIATION INFORMATION ORDERING PHYSICAL POSSESSION RISK TAKING FINANCING TRANSFER OF TITLE ROLES Intermediaries assume most of the risks involved in the distribution of goods. They relieve producers from these risks and enable them to concentrate on pro­duction

34. FUNCTIONS 12/12/2012 Indian Institute of Management Raipur 34 CONCEPT CHANNELS TYPES ROLES FUNCTIONS SELECTION INFORMATION FLOW STIMULATE PURCHASING STORAGE AND MOVEMENT PRICE FIXING

35. INFORMATION FLOW Information flows from Retailers <- >distributors Distributors <-> Wholesalers Wholesalers <-> company INFORMATION FLOW STIMULATE PURCHASING STORAGE AND MOVEMENT PRICE FIXING FUNCTIONS

36. STIMULATE PURCHASING For its promotion VIP encourages retailers to advertise in the city on its behalf, and shares some cost of it INFORMATION FLOW STIMULATE PURCHASING STORAGE AND MOVEMENT PRICE FIXING FUNCTIONS

37. STORAGE AND MOVEMENT 12/12/2012 Indian Institute of Management Raipur 37 INFORMATION FLOW STIMULATE PURCHASING STORAGE AND MOVEMENT PRICE FIXING FUNCTIONS GAS CYLINDERS ARE STORED IN THE WAREHOUSES AND THEN MOVED THROUGH RETAILERS T

38. PRICE FIXING 12/12/2012 Indian Institute of Management Raipur 38 INFORMATION FLOW STIMULATE PURCHASING STORAGE AND MOVEMENT PRICE FIXING FUNCTIONS

39. Factors Influencing the Selection of Channel Members 12/12/2012 Indian Institute of Management Raipur 39 Performance Reputation Control Experience Cost Image Selection of Channel Members CONCEPT CHANNELS TYPES ROLES FUNCTIONS SELECTION

40. SELECTION 12/12/2012 Indian Institute of Management Raipur 40 CONCEPT CHANNELS TYPES ROLES FUNCTIONS SELECTION MARKET FACTORS PRODUCT FACTORS PRODUCER FACTORS

41. MARKET FACTORS Customer Profiles Consumer or Industrial Consumer Size of Market Geographic Location 12/12/2012 Indian Institute of Management Raipur 41 MARKET FACTORS PRODUCT FACTORS PRODUCER FACTORS CONCEPT CHANNELS TYPES ROLE FUNCTIONS SELECTION

42. PRODUCT FACTORS Product Complexity Product Price Product Life Cycle Product Delicacy 12/12/2012 Indian Institute of Management Raipur 42 CONCEPT CHANNELS TYPES ROLE FUNCTIONS SELECTION MARKET FACTORS PRODUCT FACTORS PRODUCER FACTORS

43. PRODUCER FACTORS Producer Resources Number of Product Lines Desire for Channel Control 12/12/2012 Indian Institute of Management Raipur 43 CONCEPT CHANNELS TYPES ROLE FUNCTIONS SELECTION MARKET FACTORS PRODUCT FACTORS PRODUCER FACTORS

44. PROJECT SHAKTHI E CHOUPAL

45. THANK YOU 12/12/2012 Indian Institute of Management Raipur 45