Marketing mgmt

Submitted By:Naresh SharmaAmit Sharma

A PRESENTATION ONManagement of Channels

Submitted To:Mrs. Monika Dubey

INTRODUCTIONChannel management involves more than just distribution,

and has been described as management of how and where a product is used and of how the customer and the product interact.

Channel management covers processes for identifying key customers, communicating with them, and continuing to create value after the first contact.

After a company has chosen alternative, individual intermediaries' must be selected trained, motivated, and evaluated.

Channel arrangements must be modified over time.

Selecting channel members: recruit intermediaries determine what characteristics distinguish

the better intermediaries Motivating channel members:  provide superior value to these intermediaries provide training programms, market research programs, and other capability - building programs to improve intermediaries' performance.

PROCESS

The company and the intermediaries' are partners in the joint efforts to satisfy end-using consumers. They can draw on the following types of power to elicit cooperation:

1. Coercive power: Coercive power occurs when a manufacturer threatends to withdraw a resource or terminate a relationship if the intermediaries' fail to cooperate.

2. Reward power: Reward power occurs when the manufacturer offers intermediaries' an extra benefit for performing specific acts or functions.

PROCESS (CONTINUE)

3. Expert power: Expert power can be applied when the manufacturer has special knowledge that the intermediaries' value.

4. Legitimate power: Legitimate power is wielded when the manufacturer requires a behavior that is warranted under the contact. As long as the intermediaries' view the manufacturer as a legitimate leader, legitimate power works.

5. Referent point : Referent point occurs when the manufacturer is so highly respected that intermediaries' are proud to be associated. Companies such as IBM, caterpillar, and Hewlett-Packard have high referent power. 

6. Evaluating channel members: Evaluation provides the information necessary to decide these channel members to retain and which to drop. Evaluation criteria include sales volume and value, profitability, levels of the stocks etc.

WHOLESALING

The sale and distribution of goods to users other than end consumers.

Wholesaling involves selling merchandise to retailers, wholesalers and merchants, or to industrial, commercial and institutional users.

Wholesaling often occurs when large quantities of merchandise are reassembled, sorted, then repackage, and distribute in smaller lots.

Business-to-Business (B2B).

Current trends in Wholesaling

1. The distribution between large retailers and large wholesalers continues to blur :

While many retailers now operate formats such as wholesale clubs and super-centers that perform many wholesale functions

Many large wholesalers are setting up their own retailing operations

For example Walmart.

2. Wholesalers will continue to increase the services they provide to retailers—

retail pricingcooperative advertisingmarketing and management information reportsaccounting servicesonline transactions.

3. However, the increased use of computerized, automated, and Web-based systems will help wholesalers contain the

costs of ordering, shipping, and inventory holding, thus boosting their productivity.

Wholesalers who do not find efficient way to deliver value to their customers will soon drop by the wayside. 

4. With the advent of the internet and E-procurement, an increasing number of wholesalers locate nearer

manufacturing bases in China, Taiwan, and Southeast Asia.

It is different from the traditional way that wholesalers were closer to the markets they supplied than the source from which they got the products.

RETAILING

Retail is the process of selling consumer goods or services to customers through multiple channels of distribution to earn a profit. 

In retailing product is sell to the end consumer for personal or non- business use.

1. Self serve :- Serve the customers who are willing to perform their own

locate-compare-select process to save money. For Ex. Walmart, Supermarket.

2.High speed retail :- This is driving trends like drive-by dining, mobile banking

and it’s also killing giant malls, which take too much time to shop.

Equally, people are getting increasingly bored with the same brands in the same places, which in turn is driving ‘pop-up’ retail and ‘limited time only’ products and offers.

Current trends in Retailing

3.E-retailing :- The sale of goods and services through the Internet.

Electronic retailing, or e-tailing, can include business-to-business and business-to-consumer sales. E-tailing revenue can come from the sale of products and services, through subscriptions to website content, or through advertising. 

4. Retailers will adopt and experiment with technology. 3D PRINTING POS TECHNOLOGY BEACONS

5.More retailers will take control of their value chain and improve order fulfillment :-

Retailers will realize this in 2015, which is why we’ll likely see an increase in value chain initiatives, single product retail, and private label merchandise.

Additionally, more retailers will get creative with how they fulfill orders and distribute products.

6. Multi store Retail Chain :- here the objective of business is to expand by opening

stores across different markets and geographies and reap economies of scale and scope.

7.Multi brand retail chain :- in this modern retail format generally stores provide

variety of brands and product at one place.

Technology in Retailing

The new technology in Retailing is required which is necessary for the next level of retailing:

Technology is required to automate the Customer's Experience.

Consumers wants more transparency.More Personalize and Engaged Service to Consumers.

Technology in In-store Retailing

In-Store, Kiosk, Display of ProductsProduct InformationFrequent Shopper KioskVirtual Displays

Other In-Store Retailing DevicesHand Held Shopping AssistanceElectronic Point of Sale SignageBody Scanner

In-Store Checkout Technologies

1.Self-ScanningThe device is connected with a computer monitor screen

where the prices and detail of product appears.2.Self Check Out SystemThe self checkout system is like a small station which

consists various devices such as ATM , Barcode Scanner, Weighing Scale, Overhead CCTV Camera and also the check stand location.

Self Check-out Station

Retail distribution system in India

The Indian Retail sector has come off age and has gone through major transformation over the last decade with a noticeable shift towards organised retailing.

A T Kearney, a US Based global management consulting firm has ranked India as the fourth most attractive nation for retail investment among 30 flourishing markets.

Current situation of Retail distribution system in India

The retail market is expected to reach a whooping Rs. 47 lakh crore by 2016-17, as it expands at a compounded annual growth rate of 15 per cent, accordingy to the ‘Yes Bank - Assocham’ study.

The retail market, (including organised and unorganised retail), was at Rs. 23 lakh crore in 2011-12. According to the study, organised retail, that comprised just seven per cent of the overall retail market in 2011-12, is expected to grow at a CAGR of 24 per cent and attain 10.2 per cent share of the total retail sector by 2016-17.

Emerging sectors/trends in Indian retailing

Within retail, the emerging sectors would be food and grocery, apparel, electronics, e-commerce, fashion and lifestyle.

 Use of computers for merchandise planning and management, control of inventory costs and supplies and replenishment of goods done electronically, internal store billing, etc has changed the face of product retailing.

Retail classification in India   

                  Organized retail - Organised traders/retailers, who are

licensed for trading activities and registered to pay taxes to the government.

Unorganized retail – It consists of unauthorized small shops - conventional Kirana shops, general stores, corner shops among various other small retail outlets - but remain as the radiating force of Indian retail industry.

Market Dynamics

In the past few years, Indian Retail sector has seen tremendous growth in the organised segment.

Major domestic players have stepped into the retail arena  with long term, ambitious plans to expand their business across verticals, cities and formats.

Companies like Tata, Reliance, Adani Enterprise and Bharti have been investing considerably in the booming Indian Retail market.

Along with these giant retailers, a number of transnational brands have also entered into the market to set up retail chains in close association with bigger Indian companies.

Key drivers of the Indian Retail IndustryEmergence of nuclear familiesAn increase in the double-income households trendLarge working populationReasonable Real estate pricesIncrease in disposable income and customer aspirationDemand as well as increase in expenditure for luxury

itemsGrowing preference for branded products and higher

aspirations

Growing liberalization of the FDI policy in the past decadeIncreasing urbanisation,Rising affluence amid consumers BottlenecksA long way to meet international standardsLack of efficient supply-chain managementLack of required retail spaceNo fixed consumption patternShortage of trained manpowerLack of proper infrastructure and distribution channel 

The Road Ahead…

Organised Retail is emerging as the new phenomenon in India and despite the slump, the market is growing exponentially.

As economic growth brings more of India’s people into the consuming classes and organized retail lures more and more existing shoppers, by 2017, more than 300 million shoppers are likely to patronize organized retail chains.

Thus, with tremendous potential and huge population, India is set for high growth in consumer expenditure. With India's large ‘young’ population and high domestic consumption, the macro trends for the sector look favorable.

REFERENCE

http://www.financepractitioner.com/dictionary/channel-management

http://www.expertsmind.com/questions/channel-management-decisions-30113335.aspx

http://jennyxzkong.blogspot.in/2012/05/wholesaling-4-trends-in-wholesaling.html

http://info.shine.com/industry/retail/7.htmlhttp://www.vmou.ac.in/prog?SC=129

THANK YOU !

ANY QUERY?