CHANNEL INFORMATION SYSTEM.

The Nature of Marketing Channels

Distribution The activities that make products available to customers when and where they want to purchase them.

Marketing Channel A group of individuals and organizations directing products from producers to customers.

CIS Channel Information System

WHAT IS IT? The purpose of CIS is to collect and analyze data about the operations of channels.

WHY IS IT NEEDED? To assess the performance of the channels. To take corrective action to improve performance.

PROCESS OF CIS

DEVELOPING A CHANNEL MIS

DECIDE WHAT INFORMATION IS REQUIRED
How often & when?

ORGANIZE INFORMATION SUITABLE FOR INTERPRETATION AND ACTION

Operational information with little strategic intent.

DECIDE WHO WILL USE THE INFORMATION WHEN AND FOR WHAT PURPOSE
Salesperson or Channel partner.

Channel Design Decisions

Analyzing Consumer Needs. Setting Channel Objectives.

Identifying Major Alternatives. Types of intermediaries. Number of intermediaries. Responsibilities of intermediaries.

Channel design issues:

Target market coverage: intensive, exclusive,

selective Satisfying buyer requirements: - info (customer support key); - convenience (proximity, drive time) - variety (competing, complementary items) - attendant services (delivery, installation, credit) Profitability: margins earned, turn-over rate.

Legal Issues in Channel Management

Dual Distribution A producer can use two different channels to reach the same target market as long as it is not trying to engage in unfair competition and put its independent distributors out of business. Restricted Sales Territories Granting exclusive sales territory rights to distributors is permissible if the rights do not restrain trade. Tying Arrangements Requiring a channel member to buy additional products from the supplier in order to purchase a particular product from the supplier.

Legal Issues in Channel Management Contd

Full-Line Forcing Requiring a channel member to carry a suppliers entire product line to obtain any of the suppliers products.

Exclusive Dealing Forbidding an intermediary to carry products of a competing manufacturer. Is anticompetitive if

it blocks competitors from 10% of the market. sales revenues are sizable. the manufacturer is larger than the dealer.

Sales Ethics
Ethics are the moral principles and values that

govern the actions and decisions of an individual or group. They serve as guidelines on how to act rightly when faced with moral dilemmas.

Why is Trust Important?

A fundamental

competitive strategy of a growing number of organizations is to build long-term mutually beneficial relationships with their customers. The ability of those organizations salespeople to earn their customers trust is essential to the success of that strategy.

Areas of Unethical Behavior

Deceptive Practices

Illegal Activities Misuse Company Assets Defraud Con

Exaggerate Withhold Deceive Hustle Scam Bluff

Pushy Hard Sell Fast Talking High Pressure

Non-Customer-Oriented Behavior

Unsubstantiated Claims
The Dettol Soap TV commercial (TVC) had said that

their product eliminates the organisms [of cough and cold] ten times faster than other soaps and that it also eliminates organisms that cause gastrointestinal diseases. Neither of these claims could be substantiated by the company and they were forced to modify their ad. Olays (Procter & Gamble) Total Effects Cream, which claimed to be Indias best Anti-Ageing cream in a TVC had to be withdrawn as the company could not substantiate its claim.

Wild claims bordering on sheer lies.

In an ad for Hyundai Verna which appeared on the

companys website, it was claimed that the cars diesel variant CRDI VGT had a fuel economy of 32.8Kmpl! This wild claim could not be substantiated and in fact a customer claimed that he had not got more than 11 kmpl! This ad had to be discontinued. Another much publicized case was that of Tata Sky. They claimed that it was now offering its supersaver pack at Rs 200/- instead of Rs 300/- This was found to be an outright lie as the new, cheaper, package came without some premium channels! So all that the company was actually doing was offering a cheaper option. The company had to withdraw their TVC.

Ads offending the sensibilities of people

A television ad of the ING Vysya Life Insurance

showed the father of a young girl distressed at the cost of the higher education of his daughter. Visually this was shown by the ground breaking beneath him! In another scene, a father was shown to be distressed by the birth of a baby girl because of the financial cost involvedand again the ground was shown to be breaking underneath him. This ad was considered anti-womenbut even though the ad was asked to be withdrawn, by that time the ad campaign had already ended, in February 2008.

THANK YOU !!!!!!