MARKETING

MANAGEMENT
Module 4 – MARKETING CONTROL – MODERN
TRENDS IN MARKETING – CHALLENGES

Yadhu Krishnan
Indicative Contents
 Distribution as a part of Value Delivery
 Role of Marketing Channels–Channel Functions & Flows–Channel
Levels–Channel Management Décisions–VMS & HMS–E-Commerce &
M-Commerce
 Introduction to Retailing & Wholesaling–Franchising Teleshopping–
Shopping through Internet
 Communicating Value–Marketing Communication Mix–Steps in
Developing Effective Communication Mix–Concept of Integrated
Marketing Communications
 Marketing Communication Mix Management–An overview
 DISTRIBUTION

[Link]
Strategic Planning and Execution

Resource Management

Overcoming Obstacles

Communication and Coordination

End Goal and Success

 Distribution as a part of value
delivery.

COMPANY
•Distribution is the process of making a product or
service available for the consumer or business user who
needs it.

• It involves several key activities such as warehousing, inventory

management, order fulfillment, transportation, and logistics.

•Goal of distribution system : To ensure that right products reach the

right place at the right time, which is crucial for customer satisfaction and
efficient value delivery.
HOW ABOUT PLAYING A QUICK SHORT
GAME?
Distribution Channel
Also known as “Marketing Channel”
The pathway through which goods and services travel from the producer or
manufacturer to the final consumer.
Key Components of Distribution Channels:

1. Producer/Manufacturer
2. Intermediaries : Wholesalers, Distributors, Retailers , Agent or
Brokers
3. Consumer

Two primary distribution Channels :

 Direct Distribution
Channel
 Indirect Distribution
Channel
Direct
Distribution:

The manufacturer or producer sells the product directly to the end consumer without involving
intermediaries.

Indirect
Distribution:

The product passes through one or more intermediaries before reaching the end
consumer.
Two other distribution channel : Dual Distribution(combination)
Reverse Distribution(Refurbished)
Functions of marketing
channels
1. Transactional Functions
•Buying: Intermediaries purchase products from producers.

•Selling: They promote and sell products to consumers.

•Risk Taking: They assume risks related to inventory and product demand.

2. Logistical Functions
•Assorting: Combine products from various producers to meet consumer needs.

•Storing: Maintain inventory to ensure product availability.

•Sorting: Categorize products for different market segments.

•Transporting: Move products from manufacturers to consumers efficiently.

3. Facilitating Functions
•Financing: Provide credit and financial assistance.

•Grading: Inspect and certify product quality.

•Marketing Information and Research: Gather and distribute market

intelligence.
4. Customer Relationship Management

Manage customer interactions and provide after-sales service to enhance satisfaction and loyalty.

5. Negotiation

Negotiate prices and terms of sale between producers and consumers to ensure mutually

beneficial agreements.
How apple excelled in harnessing Distribution logistics
 FLIPKART VIDEO
[Link]
Role of Marketing Channels

 Information provider

 Matching Buyers and Sellers

 Time and Place utility

 Assist in product function

 Matching Demand and Supply

Levels of Distribution Channel
1. Zero Level Channel or Direct Marketing : The producer
directly sells products to customers without any intermediaries.
Examples : Online sales, Fast food vendors etc.

2. One Level Channel : Level one channel has one

intermediary as the middleman between the producer and
consumer
3. Two Level Channel : Two-level distribution channel involves two
intermediaries between the producer and the final consumer.

4. Three-level channel : Three intermediaries. The producer sells to an

agent/broker who connects them to wholesalers, who then sell to
retailers, who then sell to consumers. Often for complex products or
specialized markets.

Example : Havell’s Electrocorp Bright Light Distributors

Electronics Shops
 PRODUCER

WHOLESALER RETAILE
R
VMS – Vertical Marketing System
• A vertical marketing system occurs when producers, wholesalers and retailers work in unison to
meet their customers' needs.

• Producers, wholesalers, and retailers—work together to ensure product efficiency

and optimal market performance.

Two strategies used in VMS :

 Forward Integration

 Backward Integration
1. Forward Integration : It involves expanding a company's activities to include
control over the distribution and selling of its products.
• Forward Integration helps to gain better control over their distribution channels, improve
profit margins, and enhance customer relationships.

2. Backward Integration : Backward integration involves expanding a company's

activities to include control over its suppliers. This means moving closer to the raw
materials and components needed for production.
• Backward integration helps to secure the supply of essential materials, reduce costs, and
improve supply chain reliability.
TYPES OF VMS :

1. Corporate VMS : It is a distribution channel structure where a single entity owns and controls
multiple stages of production, distribution, and retailing.
• CVMS is integrated under one ownership, allowing for centralized control and coordination.

2. Administered VMS : One member of the channel is large and powerful enough to coordinate
the activities of the other members without an ownership stake.
• Coordination and cooperation are achieved through the dominant member's sheer size, market
dominance, expertise, or leadership
3. Contractual VMS : Consists of independent firms joined together by contract for their mutual
benefit. Each member has specific roles and shares risks and rewards based on agreements.

• It include franchises and dealership networks.

HMS – Horizontal Marketing System
• A Horizontal Marketing system is a form of distribution channel wherein two
or more companies at the same level unrelated to each other come together
to gain the economies of scale

• They might collaborate on joint promotions, share distribution channels, or even merge to form
a larger entity with increased market power for exploiting the market opportunities.

Generally, this type of marketing system is followed by companies who lack in capital, human
resources, production techniques, marketing programs and are afraid of incurring the huge losses
E – Commerce
&
M – Commerce
(Presentation)
ആദായവില്പന, ആദായവില്പന
RETAILING – B2C
Retailing refers to the process of selling goods or services
directly to the end consumers for their personal use.

 According to William J Stantons, “ A Retailer or Retail store is a business enterprise

which sells primarily to the ultimate consumers for non business use.”

 According to Cundiff and Still, “Retailing consist of those activities involved in the selling
directly to ultimate consumers. ”
CHARACTERISTICS OF RETAILING
 Small Quantity Sales

 Variety of Channels

 Direct Sales to Consumers

 Customer Service

 Pricing Strategies

 Location and Accessibility

 Types of
Retailing
Brick-and-Mortar Stores : Traditional physical stores where
customers can browse and purchase products in person. Examples :
Department stores, specality stores, convenience stores etc.
 E-tailing (Electronic Retailing):

Selling products and services through online platforms, which allows customers to shop
from anywhere at any time.
Examples : Amazon , Flipkart, Myntra etc.

 Catalog Retailing:

Selling through printed or online catalogs where customers can place orders via
phone, mail, or online.
 Direct Selling:
Selling products directly to consumers through personal presentations, often in
their homes or at workplaces.

 Convenience Stores:
Small retail outlets that stock a limited range of everyday items, often located in
convenient locations for quick purchases.
IMPORTANCE OF RETAILING: FUNCTIONS OF
 Economic growth driver RETAILING :
 Significant employment provider • Product Procurement

 Facilitates market access for • Merchandising

manufacturers • Sales

 Enhances consumer convenience • Customer Service

 Drives product promotion and sales • Marketing

 Provides valuable feedback loop for • Inventory Management

manufacturers • Logistics

 Optimizes supply chain efficiency • Payment Processing

 Engages with local communities for • After-Sales Support

social impact. • Market Research

 Is Wholesaler &
Distributor same?
Wholesaler: A wholesaler purchases goods in bulk from
manufacturers or producers and sells them in smaller quantities
to retailers or other businesses.

Distributor: A distributor also purchases goods from

manufacturers or producers, but their role extends beyond
simply selling to retailers. Responsibilities such as warehousing,
inventory management, and logistics.
WHOLESALING – B2B
It is a business practice of selling goods in large quantities at a
lower price, primarily to retailers or other businesses, rather
than directly to consumers.

Definition :
According to Philip Kotler, “ Wholesaling consist of the sale and
all activities in selling goods or services to those who buy for
resale or business use.”
 CHARACTERISTICS OF WHOLESALING
 Bulk Purchases
 Volume Discounts
 Business-to-Business (B2B) Transactions
 Warehousing and Storage
 Logistics and Distribution
 Credit Facilities
 Market Expertise
 Relationships with Manufacturers
 Value-Added Services
 Types of
wholesalers
 Merchant Wholesalers: These wholesalers take ownership of the
products they sell. They purchase goods from manufacturers and sell
them to retailers, other businesses etc.
Examples : Adani Wilmar Limited, Shree Ramkrishna Exports
Pvt. Ltd.

 Merchant wholesalers can be divided into :

• Full-Service Wholesalers: Provide services such as inventory management, delivery, credit
facilities, and marketing support.
• Limited-Service Wholesalers: Provide only fewer services and may focus on specific product
categories or customer segments.
Brokers or Agents:
Brokers do not take ownership of the products but facilitate transactions
between buyers and sellers.
They earn commissions for their services.

Manufacturer's Sales Branches or Offices:

These are wholesale operations established by manufacturers to sell
products directly to retailers or other businesses.
Specialty Wholesalers:
They focus on specific product categories or industries.
• They offer specialized knowledge, expertise, and a tailored product selection to meet the
unique needs of their customers.

Drop Shippers:
They act as intermediaries between manufacturers and customers.
• They take orders from customers and arrange for products to be shipped directly from
the manufacturer to the customer.
• Drop shippers do not hold inventory, which reduces their operating costs.
Some other types of wholesalers are : Import/Export Wholesalers, Cash and Carry
Wholesalers
CHANNEL MANAGEMENT DECISIONS
 Selecting channel member :

The success of your distribution strategy largely

depends on choosing the right partners.

Points to be considered while picking your

intermediaries : growth, Location, profit record,
reputation.
 Managing and Motivating Channel Members :

• Selling only to them or with them which in turn increases the

relationship between the companies.

Managing and motivating can be done through : Communication and Relationship

Building, Training and Development, Incentives and Rewards, Support and Resources,
Building Trust and Loyalty
Evaluating channel members :

The producer or manufacturer shall check the performance of

the channel partner.

 Evaluation techniques – Sales, average inventory sales, customer

delivery time, treatment of damage or loss of goods, cooperation in
company promotion

 Current performance = Set Performance or not…….

 Poor performing channel shall be assisted or replaced.

Franchisin
g
Franchising is a business model where the owner of a business (franchisor) grants or
licenses the rights to others (franchisees) to operate their business under the
franchisor's brand name and system.
Key elements in franchising :
 Franchisor
 Franchisee
 Franchise Agreement
 Franchise Fee
 Royalties
Some types of Franchising
1. Product Distribution Franchising : This type of franchising focuses on the
distribution of a franchisor's products through the franchisee.
• The franchisee is granted the right to sell the franchisor’s products and often operates
under the franchisor’s trademark.

2. Business Operation Franchising : This type involves not only the product, service,
and trademark but the entire business format.
• It involves operating the business, including marketing, training, and support.
3. Manufacturing Franchising : In this type of franchising, the franchisor grants the
franchisee the right to manufacture and sell products using the franchisor's
trademark and proprietary processes.
 Marketing Communication
The ways by which companies try to familiarise, influence and
remind customers either directly or indirectly concerning the
offerings they sell.
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Now lets match those videos into specific
categories………
Marketing Communication Mix
Also known as “Promotional Mix”

Promotion mix is a combination of different marketing communication

tools or tactics that a company uses to promote its products or services to
its target audience
It is a blend
of :
 Advertising
 Public Relations
 Personal Selling
 Sales Promotion
 Direct Marketing
 Advertiseme Events &
Sales Experien
nt
Promotion ce

Online &
Social Media
Public Direct Marketing Mobile
Relations Marketing Marketing
Objectives of Promotion Mix
 Build Awareness

 Build Interest

 Provide

Information

 To Face

competition

 Stimulate Demand
Marketing Communication Mix
1. Advertising :

"Advertising is the art of making yourself and your product known to the world in
such a way that a desire for buying that product is created in the hearts of the
people."
• Definition
According to AMERICAN MARKETING ASSOCIATION"
"Advertising is any paid form of non-personal presentation or promotion of
ideas, goods or services of an identified sponsor.

Types of Advertising
Print Advertising, Broadcast Advertising, Outdoor Advertising, Digital Advertising, Direct Mail
Advertising, Event Advertising, Product Placement, Influencer Marketing, Email Advertising,
Guerrilla Advertising, Mobile Advertising
Think Small – Volkswagen, 20th KFC – ‘FCK’ (2018)
Century

Links :
Colgate -
[Link]
m/watch?v=U5XbfxS8i_
c

Imperial Blue -
https://
[Link]/
Phone Pe – Truck Art Campaign watch?v=MGrjU_VcO5E
House of Dragon
2. Sales Promotion :
Sales promotion refers to a range of marketing strategies and techniques
designed to boost sales, attract customers, and enhance product awareness in
a short period.

3. Public Relations :
It is a strategic communication process that organizations use to build mutually
beneficial relationships with the public and manage their reputation.
4. Personal selling :
It is a direct form of communication where sales representatives interact with
potential customers to persuade them to purchase products or services. It
involves personal interactions that can build customer relationships and close
sales effectively.

5. Direct marketing :
It is a form of promotional mix where companies communicate directly with
customers through various channels, aiming to elicit a direct response, such as
a purchase, request for information, or visit to a website.
Telephone Marketing or Telemarketing
Telemarketing is a direct marketing technique that involves
contacting potential customers by telephone to promote
products or services, conduct surveys, or gather information.
 It is a powerful tool for reaching a large number of people quickly and can be used
for various purposes, from lead generation to customer retention.
teps in developing effective communication m
 Integrated Marketing
“Integrated marketing is an approach that uses different forms
of media, called channels, to tell a story or convey an idea”

Integrated marketing creates a consistent message and experience

across channels, boosting conversion chances by:

 More channels = more eyes to see your messaging.

 Repetition helps keep your brand top of mind.

 You gain authority by being available on every channel your customers are on.
ntegrated Marketing Communication (IMC)

Integrated Marketing Communication (IMC) is a strategic approach to promoting a

consistent message across multiple marketing channels to ensure clarity, consistency,
and maximum communication impact. Note :(IMC TOOLS = PROMOTION MIX
TOOLS)
Key Elements of IMC: Benefits of IMC:
 Consistency  Enhanced Brand Image
 Coordination
 Increased Reach and Engagement
 Clarity
 Synergy  Improved ROI

 Stronger Customer Relationships

Share a coke campaign – Coco
Cola

Results :

 “Leading to a 2.5% increase in U.S. sales volume in just the first year.“
 "The hashtag #ShareACoke generated over 500,000 photos and messages shared on
social media.“

 Literally increased consumer engagement and brand loyalty.

Content marketing : It is a marketing strategy used to attract, engage, and
retain an audience by creating and sharing relevant articles, videos, podcasts, and
other media.

Examples : Blogs, Newsletters, Social media posts, Email, podcsats etc.

ശുഭ ദിനം