1. Distribution channel management - an introduction

3. DISTRIBUTION STRATEGY MARKETING CHANNEL MANAGEMENT LOGISTICS MANAGEMENT

9. The cost and control aspects of intermediation Direct Distribution Indirect distribution Control Cost efficiency

17. Marketing Flows in channels Producers Wholesal- -ers Retailers Consumers Industrial And Household Physical Physical Physical Possession Ownership Possession Ownership Possession Ownership Promotion Promotion Promotion Negotiation Negotiation Negotiation Financing Financing Financing Risking Risking Risking Ordering Ordering Ordering Payment Payment Payment

18. Designing customer-oriented marketing channels

21. Distribution channel design To consume a product Service outputs have to be delivered Channels Participates in channel flows Activities have to be performed Thus performs activities

22. Example of a service output delivered template Available Consumer financing 7. Free for first two years, but available on payment afterwards. Also available at every city from where the product was bought. After sales support 6. Available Installation support 5. Other consumer goods items including that of other competitors are available at all the outlets where the products are otherwise Available Assortment 4. Not more than 2 days for any model Waiting time 3. There is at least one outlet for almost every 3 km radius excluding of course thinly populated areas Spatial convenience 2. Units are delivered in ones Bulk-Breaking 1. Service output delivered Service dimension Sl.No.

23. Channel flows and contribution to service outputs Bulk breaking, spatial convenience, waiting time Payment Bulk breaking, spatial convenience, waiting time Ordering Assortment Spatial convenience, waiting time, bulk breaking Financing Waiting time, bulk breaking, spatial convenience Risk taking Assortment Spatial convenience, bulk breaking Negotiation Is a service output in itself Spatial convenience Promotion Spatial convenience Ownership Assortment Spatial convenience, bulk breaking, waiting time Physical Possession Other contribution Indirect contribution Direct contribution Flow

28. Customer-oriented logistics management

33. Total cost Inventory cost Transportation cost Warehousing cost Number of warehouses Total cost Relationship between logistics, cost, and number of warehouses

35. Components of inventory carrying cost Inventory carrying cost Capital cost Inventory service costs Storage space costs Inventory carrying cost Inventory Investments Insurance and Taxes Warehouse rent, maintenance charges Obsolescence Damage& Pilferage Shrinkage Relocation costs

36. Retailer Stockist Supplier Retailer Retailer Retailer Retailer Stockist echelon lead time Stockist echelon Inventory Echelon inventory

38. Managing Channel Member Behaviour

40. Discrete relational exchange continuum Arm’s length relationship Relational exchange relationship

41. Channel control Pay–Off Function Tolerance Function Supplier authority Distributor’s profit earned Zone of acceptance

42. Role of persuasion, authority, and coercion in channel control Authority persuasion Coercion Pay –off function A B C Channel members profit Tolerance function control

43. Components of channel offering Financial returns Quality products Competitive price Reliable delivery National reputation Promotional support Training Market research Company policies Technical assistance Responsiveness systems Manufacturer sales force incentives Distributor sales force incentives Distributor firm incentives Capability building programmes Channel core elements Incentive programme

46. Influence situations in channel relationship Positive Negative Neutral + ve - ve Attitude towards the channel progranmme Behaviour towards the channel programme Radical confrontation Behavioural and attitudinal change Moderate confrontation Behavioural and attitudinal change Inducement process Behavioural change Radical rationalization Attitude change Moderate rationalization Attitude change Reinforcement process Behavioural reinforcement

47. Stages in channel conflict CAUSES OF CONFLICTS Attitudinal Causes Structural causes Attitudinal sources of conflict Structural sources of conflict Conflict resolution Cognitive/ Affective conflict Manifest conflict Conflict outcomes

48. Conflict management methods at different stages of conflict Latent conflict Felt conflict Manifest conflict Institutional approaches Joint membership of associations Exchange of executives Cooptation Dealer councils Third party mechanisms Mediation arbitration Negotiation

49. Negotiation strategies Accommodative Collaborative/problem solving Compromise Avoidance Competitive /aggressive Concern for the others interest HIGH LOW LOW HIGH Concern for own interest

50. Retail Management

54. Availability of stock and stock holding cost Stock holding cost Percentage of availability 80 % 90% 100% +20%

56. Merchandise planning process Plan mark –ups based on profitability targets Develop a sales plan Plan reductions Develop a stock plan Plan merchandise needs Calculated planned Purchase

59. Purchase process for service requirement identification Pre-purchase phase Purchase phase Post purchase phase Purchase process Service requirements Search Comparison Product related Augmentation of the product Transaction related Delivery Installation Use extension Repeat visits

60. Attitude towards trading format and store environment Pre-purchase Stage During Purchase Post-purchase Stage Task Oriented Pleasure Oriented Shopping Attitudes Convenient Locations Ample Parking Close to Other Task Oriented Stores Relevant Merchandise Selection Exclusive Store Merchandise Wide Choice Prestigious Image High Availability Competitive Pricing Rapid Cash Handling Ambience and Excitement Visual Merchandising In-store Facilities Product Services Centers Product Displays Customer Advice Areas Theme Displays Customer Advice Areas

61. Managing the I nternational Channels of Distribution

63. Market entry strategy Indirect exporting Direct exporting Licensing Franchising Contract manufacturing Strategic alliance Joint venture Wholly owned subsidiary C O N T R O L R I S K

64. Success factors in manf. – overseas distributor relationships Full compliance with law,drafting a strong distributor agent. Vertical trading restrictions Dismissal difficulties Differences in the legal and regulatory structures Making judicious ways of two way visits, establishing a well managed communication programme Communication blocks Negative attitudes Problems in physical distribution Geographic, economic, and cultural gaps Offering good incentives, helpful support schemes, frank discussions, and high levels of interactions Divided loyalties Seller buyer atmosphere Unclear future intentions Separate ownership Remedies Outcomes Distribution inhibitors

66. Export procedure Exporter Importer Bank in exporter’s country Importers bank Manufacturing Freight forwarder Transportation and Documentation formalities secured Import warehouse Customs broker Customs Ship 1 2 3 4 5 6 5 8 7 9 9 Contd.