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IIM

RAIPUR

P
R
O
D
U
C
E
R

02/09/16

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PLACING
C
O
N
S
U
M
E
R

INDIAN INSTITUTE OF MANAGEMENT R

IIM
RAIPUR

Placing (I) - Channel


Management
MANOJ H
RAHUL KHEDKAR
RISHIRAJ SINGH ASHIYA
SHAHUL HAMEED
VAMSY KRISHNA

INDIAN INSTITUTE OF MANAGEMENT RAIPUR

AGENDA
CONCEPT

CHANNELS

TYPES
ROLES
FUNCTION
S
SELECTION

02/09/16

Indian Institute of Management Raipur

DISTRIBUTION
CONCEPT

CHANNELS

TYPES
,
ROLES
FUNCTION
S
SELECTION

02/09/16

It
is
defined
as
the
management
of
all
activities which facilitate
movement
and
coordination of supply and
demand in creation of time,
place utility in goods
Indian Institute of Management Raipur

DISTRIBUTION
CONCEPT

CHANNELS

TYPES
,
ROLES
FUNCTION
S
SELECTION

02/09/16

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
Indian Institute of Management Raipur

TYPES OF DISTRIBUTION
CONCEPT

CHANNELS

TYPES
,
ROLES
FUNCTION
S
SELECTION

02/09/16

Indian Institute of Management Raipur

CHANNELS
CONCEPT

CHANNELS

TYPES
,
ROLES
FUNCTION
S
SELECTION

02/09/16

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
Indian Institute of Management Raipur

CHANNELS
CONCEPT
MANUFACTURE
R
CHANNELS

CUSTOMER

MANUFACTUR
TYPES
ER
,
ROLES
MANUFACTUR
ER
FUNCTION
S
MANUFAC
TURER
SELECTION

02/09/16

RETAILER

WHOLESAL
ER

AGENTS

WHOL
ESALE
R

CUSTOMER

RETAILER

RETAIL
ER

Indian Institute of Management Raipur

CUSTOMER

CUSTOMER

CHANNELS
MANUFACTURE
R

MANUFACTUR
ER

CUSTOMER
LEVEL
0

RETAILER
LEVEL
1

02/09/16

Indian Institute of Management Raipur

CUSTOMER

CHANNELS

MANUFACTUR
ER

WHOLESAL
ER

RETAILER

LEVEL
2
02/09/16

Indian Institute of Management Raipur

CUSTOMER

CHANNEL FLOW
CONCEPT
CHANNELS

TYPES
,
ROLES
FUNCTION
S
MANUFAC
TURER
SELECTION

02/09/16

C
O
M
P
A
N
Y

FORWAR
Goods/ Services
D
Payment for
BACKWAR
Goods/
D
Returns
BOTH WAYS
Information

Indian Institute of Management Raipur

C
U
S
T
O
M
E
R
S

INTERMEDIARIES
CHANNELS
INTERMEDIARIES

AGENTS

WHOLESALER
S

DISTRIBUTORS

RETAILERS

02/09/16

Links producers to other


intermediaries or the ultimate
buyer.
Promote, sell, and makeavailable 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
Indian Institute of Management Raipur

AGENTS
CHANNELS
INTERMEDIARIES

AGENTS

WHOLESALER
S

DISTRIBUTORS

RETAILERS

02/09/16

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.
Indian Institute of Management Raipur

WHOLESALERS
CHANNELS
INTERMEDIARIES

AGENTS

WHOLESALER
S

DISTRIBUTORS

RETAILERS

02/09/16

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.
Indian Institute of Management Raipur

DISTRIBUTORS
CHANNELS
INTERMEDIARIES

AGENTS

WHOLESALER
S

DISTRIBUTORS

RETAILERS

02/09/16

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

Indian Institute of Management Raipur

RETAILERS
CHANNELS
INTERMEDIARIES

AGENTS

WHOLESALER
S

DISTRIBUTORS

RETAILERS

02/09/16

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
Indian Institute of Management Raipur

TYPES
CONCEPT

CHANNELS

TYPES
ROLES
FUNCTION
S
SELECTION

02/09/16

Indian Institute of Management Raipur

INTENSIVE
CONCEPT

CHANNELS

TYPES
ROLES
FUNCTION
S
SELECTION

02/09/16

Indian Institute of Management Raipur

SELECTIVE
CONCEPT

CHANNELS

TYPES
ROLES
FUNCTION
S
SELECTION

02/09/16

Indian Institute of Management Raipur

EXCLUSIVE
CONCEPT

CHANNELS

TYPES
ROLES
FUNCTION
S
SELECTION

02/09/16

Indian Institute of Management Raipur

ROLES
CONCEPT

CHANNELS

TYPES

PROMOTION
NEGOTIATIO
N
INFORMATIO
N
ORDERING

ROLES

PHYSICAL
POSSESSION

FUNCTION
S

TRANSFER
OF TITLE
FINANCING

SELECTION

RISK TAKING
02/09/16

Indian Institute of Management Raipur

PROMOTION
ROLES

PROMOTION
NEGOTIATIO
N
INFORMATIO
N
ORDERING
PHYSICAL
POSSESSION

TRANSFER
OF TITLE
FINANCING
RISK TAKING
02/09/16

Marketing intermediaries
attract customers and
persuade them to buy
goods and services.
These intermediaries
undertake sales
promotion activities
through media and
personal contacts
Indian Institute of Management Raipur

PROMOTION
ROLES

PROMOTION
NEGOTIATIO
N
INFORMATIO
N
ORDERING
PHYSICAL
POSSESSION

TRANSFER
OF TITLE
FINANCING
RISK TAKING
02/09/16

Indian Institute of Management Raipur

NEGOTIATION
ROLES

PROMOTION
NEGOTIATIO
N
INFORMATIO
N
ORDERING
PHYSICAL
POSSESSION

TRANSFER
OF TITLE
FINANCING
RISK TAKING
02/09/16

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
Indian Institute of Management Raipur

NEGOTIATION
ROLES

PROMOTION
NEGOTIATIO
N
INFORMATIO
N
ORDERING
PHYSICAL
POSSESSION

TRANSFER
OF TITLE
FINANCING
RISK TAKING
02/09/16

Indian Institute of Management Raipur

INFORMATION
ROLES

PROMOTION
NEGOTIATIO
N
INFORMATIO
N
ORDERING
PHYSICAL
POSSESSION

TRANSFER
OF TITLE
FINANCING
RISK TAKING
02/09/16

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
Indian Institute of Management Raipur

INFORMATION
ROLES

PROMOTION
NEGOTIATIO
N
INFORMATIO
N
ORDERING
PHYSICAL
POSSESSION

TRANSFER
OF TITLE
FINANCING
RISK TAKING
02/09/16

Indian Institute of Management Raipur

ORDERING
ROLES

PROMOTION

WHOLESALERS

NEGOTIATIO
N
INFORMATIO
N
ORDERING
PHYSICAL
POSSESSION

TRANSFER
OF TITLE
FINANCING
RISK TAKING
02/09/16

Intermediaries collect small


orders from consumers
and on that basis place
large orders with
manufacturers
Indian Institute of Management Raipur

ORDERING
ROLES

PROMOTION

RETAIL OUTLETS

NEGOTIATIO
N
INFORMATIO
N
ORDERING
PHYSICAL
POSSESSION

TRANSFER
OF TITLE
FINANCING
RISK TAKING
02/09/16

Indian Institute of Management Raipur

PHYSICAL POSSESSION
ROLES

PROMOTION
NEGOTIATIO
N
INFORMATIO
N
ORDERING
PHYSICAL
POSSESSION

TRANSFER
OF TITLE
FINANCING

Middlemen take possession of


goods from producers and pass
on possession to consumers

RISK TAKING
02/09/16

Indian Institute of Management Raipur

TRANSFER OF TITLE
ROLES

PROMOTION
NEGOTIATIO
N
INFORMATIO
N
ORDERING
PHYSICAL
POSSESSION

TRANSFER
OF TITLE
FINANCING
RISK TAKING
02/09/16

Middlemen transfer ownership of


goods from producers to consumers
Indian Institute of Management Raipur

FINANCING
ROLES

PROMOTION
NEGOTIATIO
N
INFORMATIO
N
ORDERING
PHYSICAL
POSSESSION

TRANSFER
OF TITLE
FINANCING
RISK TAKING
02/09/16

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
Indian Institute of Management Raipur

RISK TAKING
ROLES

PROMOTION
NEGOTIATIO
N
INFORMATIO
N
ORDERING
PHYSICAL
POSSESSION

TRANSFER
OF TITLE
FINANCING
RISK TAKING
02/09/16

Intermediaries assume most of


the risks involved in the
distribution of goods.
They relieve producers from
these risks and enable them to
concentrate
onRaipur
production
Indian
Institute of Management

FUNCTIONS
CONCEPT

INFORMATIO
N FLOW

CHANNELS

TYPES
ROLES
FUNCTION
S
SELECTION

02/09/16

STIMULATE
PURCHASIN
G
STORAGE
AND
MOVEMENT

PRICE
FIXING
Indian Institute of Management Raipur

INFORMATION FLOW
FUNCTION
S
INFORMATIO
N FLOW
STIMULATE
PURCHASIN
G
STORAGE
AND
MOVEMENT

PRICE
FIXING
02/09/16

Information flows from


Retailers <- >distributors
Distributors <-> Wholesalers
Wholesalers <-> company

Indian Institute of Management Raipur

STIMULATE PURCHASING
FUNCTION
S
INFORMATIO
N FLOW
STIMULATE
PURCHASIN
G
STORAGE
AND
MOVEMENT

PRICE
FIXING
02/09/16

For its promotion VIP encourages


retailers to advertise in the city on
its behalf, and shares some cost of it
Indian Institute of Management Raipur

STORAGE AND MOVEMENT


FUNCTION
S
INFORMATIO
N FLOW
STIMULATE
PURCHASIN
G
STORAGE
AND
MOVEMENT

PRICE
FIXING
02/09/16

GAS CYLINDERS ARE STORED IN THE


WAREHOUSES AND THEN MOVED THROUGH
RETAILERS T
Indian Institute of Management Raipur

PRICE FIXING
FUNCTION
S
INFORMATIO
N FLOW
STIMULATE
PURCHASIN
G
STORAGE
AND
MOVEMENT

PRICE
FIXING
02/09/16

Indian Institute of Management Raipur

Factors Influencing the Selection of


Channel Members
CONCEPT

Cost
CHANNELS

TYPES
ROLES
FUNCTION
S

Image

Control

Selection of
Channel
Members Performance

Experience

Reputation

SELECTION

02/09/16

Indian Institute of Management Raipur

SELECTION
CONCEPT

CHANNELS

MARKET
FACTORS

TYPES
ROLES
FUNCTION
S

PRODUCT
FACTORS

PRODUCER
FACTORS

SELECTION

02/09/16

Indian Institute of Management Raipur

MARKET FACTORS
CONCEPT

MARKET
FACTOR
S

PRODUCT
FACTORS

PRODUCER
FACTORS

CHANNELS

TYPES
ROLE
FUNCTION
S
SELECTION

02/09/16

Customer Profiles
Consumer or Industrial Consumer
Size of Market
Geographic Location
Indian Institute of Management Raipur

PRODUCT FACTORS
MARKET
FACTORS

CONCEPT

PRODUC
T
FACTOR
S

CHANNELS

TYPES
ROLE
FUNCTION
S
SELECTION

02/09/16

Product
Product
Product
Product

Complexity
Price
Life Cycle
Delicacy

Indian Institute of Management Raipur

PRODUCER
FACTORS

PRODUCER FACTORS
CONCEPT

MARKET
FACTORS

PRODUCT
FACTORS

PRODUCE
R
FACTORS

CHANNELS

TYPES
ROLE
FUNCTION
S
SELECTION

02/09/16

Producer Resources
Number of Product Lines
Desire for Channel Control
Indian Institute of Management Raipur

CHANNELS

PROJECT SHAKTH

E CHOUPAL

02/09/16

Indian Institute of Management Raipur

THANK YOU

02/09/16

Indian Institute of Management Raipur

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