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Handwritten Notes, Paper 1, , Paper 2, (Management), , Soft Copy, , ₹ 100, , ₹ 300, , Hard Copy, , ₹ 150, , ₹ 450, , Call or Whatsapp for Notes : 7627096162, Note : Paper 1 includes 7 units except Comprehensions, Numerical Reasoning, and Data Interpretation because these units are practice based and theoretical, part of these units is covered in notes., For hard copies postal/courier charges are separate.

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Channel Design Decisions, To design a marketing channel system, marketers analyze customer needs and wants, establish, channel objectives and constraints, and identify and evaluate major channel alternatives.,  Analyzing Customer Needs and Wants : Consumers may choose the channels they prefer, based on price, product assortment, and convenience, as well as their own shopping goals, (economic, social, or experiential). As with products, segmentation exists, and marketers must be, aware that different consumers have different needs during the purchase process.,  Establishing Objectives and Constraints : Marketers should state their channel objectives in, terms of service output levels and associated cost and support levels. Under competitive, conditions, channel members should arrange their functional tasks to minimize costs and still, provide desired levels of service. Usually, planners can identify several market segments based, on desired service and choose the best channels for each.

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Channel Design Decisions, To design a marketing channel system, marketers analyze customer needs and wants, establish, channel objectives and constraints, and identify and evaluate major channel alternatives.,  Identifying Major Channel Alternatives : Each channel—from sales forces to agents,, distributors, dealers, direct mail, telemarketing, and the Internet—has unique strengths and, weaknesses. Several clients can share the cost of manufacturers’ reps, but the selling effort is less, intense than company reps provide. Channel alternatives differ in three ways : the types of, intermediaries, the number needed, and the terms and responsibilities of each.,  Evaluating Major Channel Alternatives : Each channel alternative needs to be evaluated, against economic, control, and adaptive criteria.

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Channel Management Decisions, After a company has chosen a channel system, it must select, train, motivate, and evaluate individual, intermediaries for each channel. It must also modify channel design and arrangements over time. As, the company grows, it can also consider channel expansion into international markets.,  Selecting Channel Members : To facilitate channel member selection, producers should, determine what characteristics distinguish the better intermediaries—number of years in, business, other lines carried, growth and profit record, financial strength, cooperativeness, and, service reputation.,  Training and Motivating Channel Members : Carefully implemented training, market, research, and other capability-building programs can motivate and improve intermediaries’, performance. The company must constantly communicate that intermediaries are crucial partners, in a joint effort to satisfy end users of the product.

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Channel Management Decisions,  Evaluating Channel Members : Producers must periodically evaluate intermediaries’, performance against such standards as sales quota attainment, average inventory levels, customer, delivery time, treatment of damaged and lost goods, and cooperation in promotional and training, programs.,  Modifying Channel Design and Arrangements : No channel strategy remains effective over, the whole product life cycle. In competitive markets with low entry barriers, the optimal channel, structure will inevitably change over time. The change could mean adding or dropping individual, market channels or channel members or developing a totally new way to sell goods

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Channel Integration and Systems, Distribution channels don’t stand still. A huge recent growth has been take place of vertical, horizontal, and, multichannel marketing systems., Vertical Marketing Systems : A conventional marketing channel consists of an independent producer,, wholesaler(s), and retailer(s). No channel member has complete or substantial control over other members. A, vertical marketing system (VMS), by contrast, includes the producer, wholesaler(s), and retailer(s) acting as a, unified system. One channel member, the channel captain, owns or franchises the others or has so much power, that they all cooperate. There are three types: corporate, administered, and contractual.,  Corporate VMS A corporate VMS combines successive stages of production and distribution under single, ownership.,  Administered VMS An administered VMS coordinates successive stages of production and distribution, through the size and power of one of the members. Manufacturers of dominant brands can secure strong trade, cooperation and support from resellers.,  Contractual VMS A contractual VMS consists of independent firms at different levels of production and, distribution, integrating their programs on a contractual basis to obtain more economies or sales impact than, they could achieve alone. Sometimes thought of as “value-adding partnerships” (VAPs), contractual VMSs, come in three types : Wholesaler-sponsored voluntary chains, Retailer cooperatives, Franchise organizations.

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Channel Integration and Systems, Distribution channels don’t stand still. A huge recent growth has been take place of vertical,, horizontal, and multichannel marketing systems.,  Horizontal Marketing Systems : Another channel development is the horizontal marketing, system, in which two or more unrelated companies put together resources or programs to exploit, an emerging marketing opportunity. Each company lacks the capital, know-how, production, or, marketing resources to venture alone, or it is afraid of the risk. The companies might work, together on a temporary or permanent basis or create a joint venture company.,  Integrating Multichannel Marketing Systems : Most companies today have adopted, multichannel marketing. An integrated marketing channel system is one in which the strategies, and tactics of selling through one channel reflect the strategies and tactics of selling through one, or more other channels. Adding more channels gives companies three important benefits. The, first is increased market coverage. The second benefit is lower channel cost. There is a trade-off,, however. New channels typically introduce conflict and problems with control and cooperation., Two or more may end up competing for the same customers.

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Conflict, Cooperation, and Competition, Channel conflict is generated when one channel member’s actions prevent another channel from, achieving its goal. Channel coordination occurs when channel members are brought together to, advance the goals of the channel, as opposed to their own potentially incompatible goals., Types of Conflict and Competition :,  Horizontal channel conflict occurs between channel members at the same level.,  Vertical channel conflict occurs between different levels of the channel.,  Multichannel conflict exists when the manufacturer has established two or more channels that, sell to the same market. It’s likely to be especially intense when the members of one channel get, a lower price (based on larger-volume purchases) or work with a lower margin.

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Conflict, Cooperation, and Competition, Causes of Channel Conflict : Conflict may arise from :,  Goal incompatibility : The manufacturer may want to achieve rapid market penetration through a, low-price policy. Dealers, in contrast, may prefer to work with high margins and pursue short-run, profitability.,  Unclear roles and rights : Territory boundaries and credit for sales often produce conflict.,  Differences in perception : The manufacturer may be optimistic about the short-term economic, outlook and want dealers to carry higher inventory. Dealers may be pessimistic.,  Intermediaries’ dependence on the manufacturer : The fortunes of exclusive dealers, such as, auto dealers, are profoundly affected by the manufacturer’s product and pricing decisions. This, situation creates a high potential for conflict.

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Conflict, Cooperation, and Competition, Managing Channel Conflict : Conflict may resolve by :,  Strategic Justification : In some cases, a convincing strategic justification that they serve distinctive segments, and do not compete as much as they might think can reduce potential for conflict among channel members.,  Dual Compensation : Dual compensation pays existing channels for sales made through new channels.,  Superordinate Goals Channel members can come to an agreement on the fundamental or superordinate goal, they are jointly seeking.,  Employee Exchange : A useful step is to exchange persons between two or more channel levels.,  Joint Memberships : Marketers can encourage joint memberships in trade associations.,  Co-option : Co-optation is an effort by one organization to win the support of the leaders of another by, including them in advisory councils, boards of directors, and the like.,  Diplomacy, Mediation, and Arbitration : Diplomacy takes place when each side sends a person or group to, meet with its counterpart to resolve the conflict. Mediation relies on a neutral third party skilled in conciliating, the two parties’ interests. In arbitration two parties agree to present their arguments to one or more arbitrators, and accept their decision.,  Legal Recourse : If nothing else proves effective, a channel partner may choose to file a lawsuit.

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