Unit 5 – Topic 1

Evaluating Channel
Performance
 Topic Learning Objectives
• Performance Measures in Marketing Channels
• Models to Diagnose Channel Profitability
• Results of Channel Performance
 Performance Measures in Marketing
Channels
• Channel Performance at Macro Level
Channel Efficiency
Productivity
Effectiveness
Equity
Profitability
 Performance Measures in Marketing
Channels
• Channel Performance at Micro Level
• Goal attainment-> Profits
• Pattern maintenance-> Competence
• Integration-> Loyalty, Compliance
• Adaptation-> Growth, Adaptability, Cusat
 Models to Diagnose Channel
Profitability
• Profit Margin* Asset Turnover = Return on
Assets
• Return on Assets* Financial Leverage = Return
on Net worth
Return on Assets* Financial Leverage =
Return on Net worth
• Net Profit/ Total Assets*Total Assets/Net
Worth=
• Net Profit/Net Worth
 Profit Margin* Asset Turnover =
Return on Assets
• Net profit/Net Sales* Net Sales/Total Assets=
• Net Profit/ Total Assets
 Results of Channel Performance
• Improved Service Quality
 Unit 5 – Topic 2

Managing Service
Conflicts
 Topic Learning Objectives
• Sources of Conflict
• Types Of Conflict
• Conflict Management
• Channel Leadership
 Sources of Conflict
• Goal Incompatibility
• Differing Perception of Reality
• Large number of products
• Many channels covering a particular Customer
segment
• Channel functions incompatible with
organizational goals
 Types Of Conflict
• Pre-contractual and Post contractual conflicts
• Vertical channel conflicts
• Horizontal channel conflicts
• Multi-Channel conflicts
 Conflict Management
• Negotiation
• Problem solving strategies
• Diplomacy In Diplomacy, the partners in the conflict
send one person from each side to resolve the conflict.
• Mediation
• Arbitration
• Personal Relationship
• https://www.uni-
marburg.de/konfliktforschung/veranstaltungen_tagung
en/internationalmediation.pdf
 Channel Leadership
• Creative and Effective Leadership result in
channel members moving towards shared
goals.
 Unit 5 – Topic 3

Wholesaling
 Topic Learning Objectives
• Wholesaling and its importance
• Types of wholesaling
• Strategic Issues in wholesaling
• Trends shaping wholesale distribution
• Challenges in wholesaling
 Wholesaling and its importance
• A wholesaler gets goods from the
manufacturer and delivers them to other
intermediaries down the channel.
• Simplify the product and information flow
between the manufacturers and end users.
• Make products available to the end users.
• Perform transactional, logistical and
facilitating functions.
 Transactional functions
• Buying
• Selling
• Risk taking
 Logistical Functions
• Assorting
• Sorting
• Storing
• Transporting
• https://www.utdallas.edu/~nkumar/CHPT16.P
DF
 Facilitating Functions
• Financing
• Grading
• Dissiminating
 Types of Wholesalers
• Merchant Wholesalers
• Agents and Brokers
• Manufacturer’s Wholesalers
• http://www.referenceforbusiness.com/small/S
m-Z/Wholesaling.html
 Strategic Issues in Wholesaling
• Target Market Decisions -STP
• Marketing Mix decisions- Products, price,
promotion, place
• http://jennyxzkong.blogspot.com/2012/05/w
holesaling-3-wholesalers-marketing.html
Trends shaping Wholesale Distribution
• Functional overlap
• Increased services
• Pricing and credit
• Regional coverage
• Organizational form and size
 Challenges in Wholesaling
• Inventory management
• Sales management
• Promotion management
• Financial planning and management
Unit 5 – Topic 4

Retailing
 Topic Learning Objectives
• Retailing and its importance
• Classification of retailers
• Strategic issues in retailing
• Trends in retailing
• Future of retailing
 Retailing and its Importance
• Importance to consumers
Inventory management
Value added services
Product Variety
Breaking bulk
Disseminating information
 Retailing and its Importance
• Importance to other channel members
Manufacturers
Wholesalers
• Importance to society
Source of employment
 Classification of Retailers
• Independently owned
• Chain owned
• Franchise operated
• Consumer cooperatives
• http://shodhganga.inflibnet.ac.in/bitstream/1
0603/97477/5/10_appendix.pdf
 Strategic Issues in Retailing
• Store location
• Retail store Image
• Product assortment
• Service rendered by the store
• Store personnel
• Store layout and ambience
• Convenience of location
 Trends in Retailing
• Competition
• Consumers
• Technology
• Micro marketing
• Emergence of new formats
• Global operations
• Ethnic retailing
• Diversification
 Future of Retailing
• Product portfolio to suit consumer needs
• Departmental stores face stiff competition
from mass merchandisers
• Concept of e-tailing will dominate retail sales
largely.
• Technology advancements will impact
operations
• Backward integation