PLACING -I        `P                CR                OO                ND                SU                UC            ...
IIMRAIPUR         Placing (I) - Channel            Management                    MANOJ H                 RAHUL KHEDKAR    ...
AGENDA                           CONCEPT                          CHANNELS                             TYPES              ...
DISTRIBUTION             CONCEPT                                     What is Distribution?         CHANNELS               ...
DISTRIBUTION             CONCEPT                                     What is Distribution?         CHANNELS               ...
TYPES OF DISTRIBUTION             CONCEPT         CHANNELS                                                Distribution    ...
CHANNELS             CONCEPT                                      What are Channels?         CHANNELS                     ...
CHANNELS             CONCEPT         MANUFACTURER                                                CUSTOMER         CHANNELS...
MANUFACTURER                                           CUSTOMER        MANUFACTURER               RETAILER                ...
MANUFACTURER   WHOLESALER                RETAILER      CUSTOMER12/12/2012                  Indian Institute of Management ...
CHANNEL FLOW CONCEPT                 Goods/ Services                                                C                     ...
INTERMEDIARIES        CHANNELS     INTERMEDIARIES             AGENTS        WHOLESALERS        DISTRIBUTORS             RE...
INTERMEDIARIES        CHANNELS                         • Links               producers         to   other     INTERMEDIARI...
AGENTS        CHANNELS     INTERMEDIARIES             AGENTS                         • An independent individual or compan...
WHOLESALERS        CHANNELS     INTERMEDIARIES             AGENTS        WHOLESALERS                         • Independent...
DISTRIBUTORS        CHANNELS     INTERMEDIARIES             AGENTS        WHOLESALERS      • Distributors only carry compl...
RETAILERS        CHANNELS     INTERMEDIARIES             AGENTS        WHOLESALERS                         • A retailer ta...
TYPES             CONCEPT         CHANNELS                                             INTENSIVE              TYPES       ...
INTENSIVE             CONCEPT   INTENSIVE                 SELECTIVE     EXCLUSIVE         CHANNELS              TYPES     ...
SELECTIVE             CONCEPT   INTENSIVE                 SELECTIVE     EXCLUSIVE         CHANNELS              TYPES     ...
EXCLUSIVE             CONCEPT   INTENSIVE                 SELECTIVE     EXCLUSIVE         CHANNELS              TYPES     ...
ROLES             CONCEPT                                       PROMOTION                                       NEGOTIATIO...
PROMOTION             ROLES        PROMOTION     • Marketing intermediaries       NEGOTIATIO       attract customers and  ...
PROMOTION             ROLES        PROMOTION       NEGOTIATIO       N       INFORMATIO           N         ORDERING       ...
NEGOTIATION             ROLES        PROMOTION     • Intermediaries or middlemen       NEGOTIATIO       negotiate prices a...
NEGOTIATION             ROLES        PROMOTION       NEGOTIATIO       N       INFORMATIO           N         ORDERING     ...
INFORMATION             ROLES        PROMOTION     • Middlemen collect       NEGOTIATIO       information about demand,   ...
INFORMATION             ROLES        PROMOTION       NEGOTIATIO       N       INFORMATIO           N         ORDERING     ...
ORDERING             ROLES        PROMOTION     • WHOLESALERS       NEGOTIATIO       N       INFORMATIO           N       ...
PHYSICAL POSSESSION             ROLES        PROMOTION       NEGOTIATIO       N       INFORMATIO           N         ORDER...
TRANSFER OF TITLE             ROLES        PROMOTION       NEGOTIATIO       N       INFORMATIO           N         ORDERIN...
FINANCING             ROLES        PROMOTION       NEGOTIATIO       N       INFORMATIO           N         ORDERING       ...
RISK TAKING             ROLES        PROMOTION       NEGOTIATIO       N       INFORMATIO           N         ORDERING     ...
FUNCTIONS             CONCEPT                                          INFORMATION                                        ...
INFORMATION FLOWFUNCTIONS INFORMATION     FLOW  STIMULATE PURCHASING STORAGE AND  MOVEMENT                      Informatio...
STIMULATE PURCHASINGFUNCTIONS INFORMATION     FLOW  STIMULATE PURCHASING STORAGE AND  MOVEMENT                 For its pro...
STORAGE AND MOVEMENT   FUNCTIONS      INFORMATION          FLOW       STIMULATE      PURCHASING      STORAGE AND       MOV...
PRICE FIXING   FUNCTIONS      INFORMATION          FLOW       STIMULATE      PURCHASING      STORAGE AND       MOVEMENT   ...
Factors Influencing the Selection of                        Channel Members             CONCEPT                           ...
SELECTION             CONCEPT         CHANNELS                                MARKET                                      ...
MARKET FACTORS                              MARKET                   PRODUCT      PRODUCER                              FA...
PRODUCT FACTORS                              MARKET                   PRODUCT      PRODUCER                              F...
PRODUCER FACTORS                             MARKET                   PRODUCT      PRODUCER                             FA...
PROJECT SHAKTHI E CHOUPAL
THANK YOU12/12/2012     Indian Institute of Management Raipur   45
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Channel Management

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  • INTENSIVEDistribution through every reasonable outlet availableStrategy is to make sure that the product is available easily in as many outlets as possibleExample: FMCGSELECTIVEPreferred for consumer, pharma products and automobile sparesMultiple, but not all outlets in the marketFew Select outlets will be permitted to keep the productOutlets are selected in line with the brand image the company wants to projectEXCLUSIVEHighly selective choice of outlets – might even be one outlet in an entire marketExample: Car DealersCould include outlets set up by the companies itselfExample: Titan, Bata, Planet Fashion
  • Channel Management

    1. 1. PLACING -I `P CR OO ND SU UC ME ER R
    2. 2. IIMRAIPUR Placing (I) - Channel Management MANOJ H RAHUL KHEDKAR RISHIRAJ SINGH ASHIYA SHAHUL HAMEED VAMSY KRISHNA INDIAN INSTITUTE OF MANAGEMENT RAIPUR
    3. 3. AGENDA CONCEPT CHANNELS TYPES ROLES FUNCTIONS SELECTION12/12/2012 Indian Institute of Management Raipur 3
    4. 4. DISTRIBUTION CONCEPT What is Distribution? CHANNELS It is defined as the management of TYPES all activities which facilitate , movement and co-ordination of ROLES supply and demand in creation of time, place utility in goods FUNCTIONS SELECTION12/12/2012 Indian Institute of Management Raipur 4
    5. 5. DISTRIBUTION CONCEPT What is Distribution? CHANNELS It is the Art and Science of TYPES determining requirements, , acquiring them, distributing them ROLES and finally maintaining them in an FUNCTIONS operationally ready condition for their entire life SELECTION12/12/2012 Indian Institute of Management Raipur 5
    6. 6. TYPES OF DISTRIBUTION CONCEPT CHANNELS Distribution TYPES , ROLES Channel Physical FUNCTIONS management Distribution SELECTION12/12/2012 Indian Institute of Management Raipur 6
    7. 7. CHANNELS CONCEPT What are Channels? CHANNELS • The path through which TYPES , goods and services ROLES travel from the vendor FUNCTIONS to the consumer or payments for those SELECTION products travel from the12/12/2012 consumer to the vendor Indian Institute of Management Raipur 7
    8. 8. CHANNELS CONCEPT MANUFACTURER CUSTOMER CHANNELS MANUFACTURER TYPES RETAILER CUSTOMER , ROLES MANUFACTURER WHOLESALER RETAILER CUSTOMER FUNCTIONS MANUFACT WHOLE AGENTS RETAILER CUSTOMER URER SELECTION SALER12/12/2012 Indian Institute of Management Raipur 8
    9. 9. MANUFACTURER CUSTOMER MANUFACTURER RETAILER CUSTOMER12/12/2012 Indian Institute of Management Raipur 9
    10. 10. MANUFACTURER WHOLESALER RETAILER CUSTOMER12/12/2012 Indian Institute of Management Raipur 10
    11. 11. CHANNEL FLOW CONCEPT Goods/ Services C FORWARDCHANNELS C U O S TYPES Payment for Goods/ , M BACKWARD T Returns ROLES P O A MFUNCTIONS N BOTH E InformationMANUFACT Y WAYS R URERSELECTION S
    12. 12. INTERMEDIARIES CHANNELS INTERMEDIARIES AGENTS WHOLESALERS DISTRIBUTORS RETAILERS12/12/2012 Indian Institute of Management Raipur 12
    13. 13. INTERMEDIARIES CHANNELS • Links producers to other INTERMEDIARIES intermediaries or the ultimate buyer. AGENTS • Promote, sell, and make- available a good or service through WHOLESALERS contractual arrangements or purchase and resale of the item. DISTRIBUTORS • Each intermediary receives the item at one pricing point and RETAILERS moves it to the next higher pricing point until the item reaches12/12/2012 the final buyer Raipur Indian Institute of Management 13
    14. 14. AGENTS CHANNELS INTERMEDIARIES AGENTS • An independent individual or company WHOLESALERS • Primary selling arm of the producer and represent the producer to users. DISTRIBUTORS • Agents take possession of products but do not actually own them. • Make profits from commissions or fees RETAILERS paid for the services they provide to the producer and users.12/12/2012 Indian Institute of Management Raipur 14
    15. 15. WHOLESALERS CHANNELS INTERMEDIARIES AGENTS WHOLESALERS • Independently owned firms that take title to the merchandise they handle. • In other words, the wholesalers own the products they sell. DISTRIBUTORS • Wholesalers purchase product in bulk and store it until they can resell it. • Wholesalers generally sell the products they RETAILERS have purchased to other intermediaries, usually retailers, for a profit.12/12/2012 Indian Institute of Management Raipur 15
    16. 16. DISTRIBUTORS CHANNELS INTERMEDIARIES AGENTS WHOLESALERS • Distributors only carry complementary product lines, either Pepsi or Coke products. DISTRIBUTORS • Distributors usually maintain close relationships with their suppliers and RETAILERS customers. Distributors will take title to products and store them until they are sold12/12/2012 Indian Institute of Management Raipur 16
    17. 17. RETAILERS CHANNELS INTERMEDIARIES AGENTS WHOLESALERS • A retailer takes title to, or purchases, products from other market intermediaries. DISTRIBUTORS • 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 RETAILERS directly to the end user for a profit12/12/2012 Indian Institute of Management Raipur 17
    18. 18. TYPES CONCEPT CHANNELS INTENSIVE TYPES ROLES SELECTIVE FUNCTIONS EXCLUSIVE SELECTION12/12/2012 Indian Institute of Management Raipur 18
    19. 19. INTENSIVE CONCEPT INTENSIVE SELECTIVE EXCLUSIVE CHANNELS TYPES ROLES FUNCTIONS SELECTION12/12/2012 Indian Institute of Management Raipur 19
    20. 20. SELECTIVE CONCEPT INTENSIVE SELECTIVE EXCLUSIVE CHANNELS TYPES ROLES FUNCTIONS SELECTION12/12/2012 Indian Institute of Management Raipur 20
    21. 21. EXCLUSIVE CONCEPT INTENSIVE SELECTIVE EXCLUSIVE CHANNELS TYPES ROLES FUNCTIONS SELECTION12/12/2012 Indian Institute of Management Raipur 21
    22. 22. ROLES CONCEPT PROMOTION NEGOTIATIO CHANNELS N INFORMATIO N TYPES ORDERING ROLES PHYSICAL POSSESSION TRANSFER FUNCTIONS OF TITLE FINANCING SELECTION RISK TAKING12/12/2012 Indian Institute of Management Raipur 22
    23. 23. PROMOTION ROLES PROMOTION • Marketing intermediaries NEGOTIATIO attract customers and N INFORMATIO persuade them to buy goods N and services. ORDERING PHYSICAL • These intermediaries POSSESSION undertake sales promotion TRANSFER OF TITLE activities through media and FINANCING personal contacts RISK TAKING12/12/2012 Indian Institute of Management Raipur 23
    24. 24. PROMOTION ROLES PROMOTION NEGOTIATIO N INFORMATIO N ORDERING PHYSICAL POSSESSION TRANSFER OF TITLE FINANCING RISK TAKING12/12/2012 Indian Institute of Management Raipur 24
    25. 25. NEGOTIATION ROLES PROMOTION • Intermediaries or middlemen NEGOTIATIO negotiate prices and other N INFORMATIO terms and condi-tions N between buyer and seller. ORDERING PHYSICAL • No sale can take place POSSESSION without an agreement on TRANSFER OF TITLE prices and other terms and FINANCING conditions RISK TAKING12/12/2012 Indian Institute of Management Raipur 25
    26. 26. NEGOTIATION ROLES PROMOTION NEGOTIATIO N INFORMATIO N ORDERING PHYSICAL POSSESSION TRANSFER OF TITLE FINANCING RISK TAKING12/12/2012 Indian Institute of Management Raipur 26
    27. 27. INFORMATION ROLES PROMOTION • Middlemen collect NEGOTIATIO information about demand, N INFORMATIO competition, etc., from N consumers and pass on to ORDERING manufacturers. PHYSICAL POSSESSION • They also provide information TRANSFER OF TITLE to consumers about new FINANCING products, changes in design, RISK TAKING style, prices, etc., of existing products12/12/2012 Indian Institute of Management Raipur 27
    28. 28. INFORMATION ROLES PROMOTION NEGOTIATIO N INFORMATIO N ORDERING PHYSICAL POSSESSION TRANSFER OF TITLE FINANCING RISK TAKING12/12/2012 Indian Institute of Management Raipur 28
    29. 29. ORDERING ROLES PROMOTION • WHOLESALERS NEGOTIATIO N INFORMATIO N ORDERING • RETAIL OUTLETS PHYSICAL POSSESSION TRANSFER OF TITLE • Intermediaries collect small FINANCING orders from consumers RISK TAKING and on that basis place large12/12/2012 orders with manufacturers Indian Institute of Management Raipur 29
    30. 30. PHYSICAL POSSESSION ROLES PROMOTION NEGOTIATIO N INFORMATIO N ORDERING PHYSICAL POSSESSION TRANSFER OF TITLE • Middlemen take possession of goods from producers and FINANCING pass on possession to RISK TAKING consumers12/12/2012 Indian Institute of Management Raipur 30
    31. 31. TRANSFER OF TITLE ROLES PROMOTION NEGOTIATIO N INFORMATIO N ORDERING PHYSICAL POSSESSION TRANSFER OF TITLE • Middlemen transfer FINANCING ownership of goods from producers to consumers RISK TAKING12/12/2012 Indian Institute of Management Raipur 31
    32. 32. FINANCING ROLES PROMOTION NEGOTIATIO N INFORMATIO N ORDERING PHYSICAL POSSESSION TRANSFER • Intermediaries provide financial, OF TITLE assistances at different stages of FINANCING the market-ing channel. They buy goods in cash from producers and RISK TAKING sell them to consumers on credit12/12/2012 Indian Institute of Management Raipur 32
    33. 33. RISK TAKING ROLES PROMOTION NEGOTIATIO N INFORMATIO N ORDERING PHYSICAL POSSESSION • Intermediaries assume most of TRANSFER OF TITLE the risks involved in the FINANCING distribution of goods. They relieve producers from these RISK TAKING risks and enable them to12/12/2012 concentrate on pro-duction Indian Institute of Management Raipur 33
    34. 34. FUNCTIONS CONCEPT INFORMATION FLOW CHANNELS STIMULATE TYPES PURCHASING ROLES STORAGE AND MOVEMENT FUNCTIONS SELECTION PRICE FIXING12/12/2012 Indian Institute of Management Raipur 34
    35. 35. INFORMATION FLOWFUNCTIONS INFORMATION FLOW STIMULATE PURCHASING STORAGE AND MOVEMENT Information flows from Retailers <- >distributors Distributors <-> Wholesalers PRICE FIXING Wholesalers <-> company
    36. 36. STIMULATE PURCHASINGFUNCTIONS INFORMATION FLOW STIMULATE PURCHASING STORAGE AND MOVEMENT For its promotion VIP encourages retailers to advertise in the city on its behalf, and shares PRICE FIXING some cost of it
    37. 37. STORAGE AND MOVEMENT FUNCTIONS INFORMATION FLOW STIMULATE PURCHASING STORAGE AND MOVEMENT GAS CYLINDERS ARE STORED IN THE WAREHOUSES AND THEN MOVED THROUGH RETAILERS T PRICE FIXING12/12/2012 Indian Institute of Management Raipur 37
    38. 38. PRICE FIXING FUNCTIONS INFORMATION FLOW STIMULATE PURCHASING STORAGE AND MOVEMENT PRICE FIXING12/12/2012 Indian Institute of Management Raipur 38
    39. 39. Factors Influencing the Selection of Channel Members CONCEPT Cost CHANNELS Control TYPES Image Selection of Channel ROLES Members Performance FUNCTIONS Experience Reputation SELECTION12/12/2012 Indian Institute of Management Raipur 39
    40. 40. SELECTION CONCEPT CHANNELS MARKET FACTORS TYPES PRODUCT ROLES FACTORS FUNCTIONS PRODUCER FACTORS SELECTION12/12/2012 Indian Institute of Management Raipur 40
    41. 41. MARKET FACTORS MARKET PRODUCT PRODUCER FACTORS FACTORS FACTORS CONCEPT CHANNELS TYPES ROLE • Customer Profiles FUNCTIONS • Consumer or Industrial Consumer • Size of Market SELECTION • Geographic Location12/12/2012 Indian Institute of Management Raipur 41
    42. 42. PRODUCT FACTORS MARKET PRODUCT PRODUCER FACTORS FACTORS FACTORS CONCEPT CHANNELS TYPES ROLE • Product Complexity FUNCTIONS • Product Price • Product Life Cycle SELECTION • Product Delicacy12/12/2012 Indian Institute of Management Raipur 42
    43. 43. PRODUCER FACTORS MARKET PRODUCT PRODUCER FACTORS FACTORS FACTORS CONCEPT CHANNELS TYPES ROLE • Producer Resources FUNCTIONS • Number of Product Lines SELECTION • Desire for Channel Control12/12/2012 Indian Institute of Management Raipur 43
    44. 44. PROJECT SHAKTHI E CHOUPAL
    45. 45. THANK YOU12/12/2012 Indian Institute of Management Raipur 45
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