Distribution and

Channel
Management (DCM)
(MKT503)
Session 1 and 2
Dr. Tarun Agarwal
Jaipuria Institute of Management - Indore
Term V, Batch 2019-21
Introductions

• I’ll call your name?

• What do you expect to get out of learning
Marketing 503? What is your personal learning
GOAL?
Be Open and Frank

Section Division

Groups Formation

Project Allocation

Complete Book

Cases

SPOC’s
Be Comfortable
Group Case Presentations

Group Project Submission & Presentation

Role Plays

Quiz

End term

Deadlines

Attendance
Any Other Relaxations – On Demand
Study material Flip Videos
PPt’s
 Session Plan

SESSION DETAILS #
TOTAL SESSIONS 20

TEACHING SESSIONS 8/9 Top Management Speaker from

CO TEACHING SESSION 1/2
- AMUL
- Baker’s Street
TOTAL TEACHING SESSIONS 10 - Film Distribution & An Actor
- INSEAD Pass out, Startup CEO, Singapore
GUEST LECTURE 1/2
- Top 50 Women Entrepreneur from Bangladesh
Role Plays 1/2
GROUP PRESENTATIONS 3
CASE STUDIES (DISCUSSIONS) 4
 Broad Session Plan
Session Activity Case Name Joint Session
Number  Teaching Session: Prof. Manish Saraf
1,2,4,7, Core Teaching
11,12,13,14,15 Sessions
3 Case Discussion Arvind Readiness of the Following:
Lifestyle  Quiz
5 Role Plays (Two Sessions Together in Case  Role Plays
Possible)  Projects
6 Case Discussion Supor  Cases
8 Role Plays  End Term Examination
9 Guest Talk Yes – For sure
10 Guest Talk Yes – For Sure
16 Quiz & Case Big Basket Yes
Discussions
17 Case Discussion 3M Chile
Healthcare
Products
18 Group Presentations Yes – For Sure
15th – 20th December, 2020
19 Group Presentations Yes – For Sure
20 Group Presentations Yes – For Sure
 Course Outline

Please refer to the PGP Document

or
the Document as shared by the Course facilitator in Advance on WhatsApp
Evaluation

End term 40%

Case Analysis (Group) 10%
Group Assignment (Group)  20%
60%
Role Play (Individual/ Group) 20%
Quiz (Announced) 10%
Groups

• Groups of 7 or 8 for all group work i.e. Role Plays and Case Analysis
• Groups of 3 or 4 for Project Work & Flip Videos
• Groups have been formed, please note

NOTE: ALL STUDENTS on the team will receive the same grade. Your team members
will be your team for the entire course.

NOTE: LEADERS ROLE IS OF IMMENSE IMPORATNCE

Section A – SPOC’s

1. Hamsini
2. Aditi
3. Mishva
Section A DCM-Groups (Role Play and Case Analysis)
Aakrati   Mansi   Aashi Bilala
Aditi   Anurag   Ayush Jain
Prabal   Aman   Durgesh Murjani
Prachi Priyadarshini Team 2 Kamini Team 3 Geetika Kambo
Team 1
Aditya   Pooja Diwan   Mishva Joshi
Dewanshu   Krati Jain   Pooja Vaishnav
Hamsini   Divyani   Prachi Agrawal
Dhruvika   Ananya   Atul

Avneet Ayush Dubey Nikita Jain

Gourav Prachi shah Ashna Nigam
Himanshu Pooja shah Akshat dubey
Team 4 Harsh Team 5 Palak dubey Devashish Bhosle
Team 6
Itisha Akshat jain Janvi Kodhvani
Neha Pallavi Arzu jain
Pragati Pragya Madhulika Tiwari

Milan Choudhary
Nandani
Nikita Singh
Team 7 Pooja Banodha
Prakhar
Bhavna Jat
Section B – SPOC’s

1. Ranjana
2. Sunshine
3. Yashwant
 Section B DCM – Groups (Role Play and Case Analysis)
GROUP NO. ROLL NO. NAME GROUP NO. ROLL NO. NAME
JI/2019-21/0114 SHUBHAM SINGH JI/2019-21/0108 SHIVANGI GOYAL
JI/2019-21/0089 RANA PRATAP SINGH JI/2019-21/0123 SUNSHINE MANGLANI
JI/2019-21/0097 SAHIL KAPOOR
JI/2019-21/0127 SWAPNIL TIMOTHY
1 JI/2019-21/0161 VINAY NAMDEO
JI/2019-21/0170 SHIVANI GUPTA 4 JI/2019-21/0101 SARIKA VERMA
JI/2019-21/0130 TARUN MEHTA JI/2019-21/0110 SHREY DOSHI
JI/2019-21/0128 TALHA PARKAR JI/2019-21/0098 SAMARTH SINGHAL
JI/2019-21/0162 SUDEETI MAROO JI/2019-21/0133 VARNITA ASHOK GUPTA
JI/2019-21/0088 RAMAN PRAJAPAT JI/2019-21/0126 SUSHMITA RATHORE
JI/2019-21/0147 SHUBHAM JAIN
JI/2019-21/0153 SWAYAM KAPOOR
2 JI/2019-21/0093 RITIKA SRIVASTAVA
JI/2019-21/0084 PRIYANSHI JAIN
JI/2019-21/0113 SHUBHAM CHOUDHARY
JI/2019-21/0119 SONIYA SOLANKI 5 JI/2019-21/0095 RIYA JACOB
JI/2019-21/0135 YASH DADHICH JI/2019-21/0109 SHOBHIT TIWARI
JI/2019-21/0082 PRASHANT MISHRA JI/2019-21/0086 RAHUL AGARWAL
JI/2019-21/0111 SHRUTI KHANDELWAL JI/2019-21/0125 SURBHI MANGAL
JI/2019-21/0102 SARTHAK PALIWAL
JI/2019-21/0099 SANCHITA MATHUR
3 JI/2019-21/0134 VINIT JAIRAJ
JI/2019-21/0118 SONIKA KACHHWAHA
JI/2019-21/0131 TUSHAR MUKHERJEE
JI/2019-21/0150 RADHIKA LADDHA JI/2019-21/0143 VANSHIKA GUPTA
JI/2019-21/0115 SHUBHANJALI BANODHA 6 JI/2019-21/0085 PURNIMA SANKHALA
JI/2019-21/0090 RANJANA SINGH JI/2019-21/0151 SIDDHARTH SONI
JI/2019-21/0129 TANYA SRIVASTAVA JI/2019-21/0138 YASHWANT VERMA
JI/2019-21/0100 SANGINI JHA
7 JI/2019-21/0120 SRISHTI MITTAL
JI/2019-21/0080 PRANAV SINGH
JI/2019-21/0163 RISHABH GARG
JI/2019-21/0091 RAVI JAISWANI
4 - Requests

15
Request - 1 (3)

• Work in Teams

• Stay Connected – WhatsApp Group

• Attendance at the end of the session

16
Request - 2 (4)

No requests shall be entertained WHATSOEVER for:

• Re – tests/evaluations

• Attendance issues “MISSED”

• Delayed submissions/ presentations

Manage your Time/Day/Date/Week/Month etc. 17

Request – 3 (2)

• Please do not approach any other faculty/PGP/exams as

regards DCM Elective Course Matters

• Reach out: 24 by 7

18
Request – 4 (3)

- Marks
- Class Schedule (Sat & Sunday)
- Any Other matter of Dispute

19
Suggestion (3)

Please refer to last three years END TERM question papers

Be updated of the sessions!

Remain prepared Quiz/Case Presentations!

20
Feed Back is Important
 Click icon to add picture

Me vs. Tata Tea

A story …

Buying, Selling, Assembling, Standardization,

Grading, Packing, Packaging, Risk Bearing etc.
What is a Marketing Channel?

• Your thoughts?

• Using your own words (take 2 minutes) to briefly Write/Think a

definition of a what a marketing channel is to you.
What is a Marketing
Channel ?
A marketing channel is a set of
interdependent organisations involved
in the process of making the product or
service available for use or
consumption.
 Channel Stages

2 Stages

Indirect

1 Stage

Indirect
Hybrid

Direct

Direct
Why do marketing channels exist?
• Demand side factors
• Facilitation of search, matchmaker that
bring together buyer and seller.
• Adjustment of assortment discrepancy
Goods are produced as Large quantity
of limited variety in comparison to
demand which is limited by quantity
for a wide variety
Bottom line: Meeting customer
demands, driven by the consumer.
• Supply side factors
• Routinization of transactions, to
minimize cost of distribution and
improve efficiency
• Reduction in number of Contacts
Bottom-line: mitigating risk,
minimizing management
cost, maximizing utility
Contractual efficiency
What work do the channels perform?

• Includes the performance of several marketing flows. E.g..:

Physical Physical Physical

Ownership Ownership Ownership

Promotion Promotion Promotion

Consumers:
Negotiation Negotiation Negotiation Industrial
Producers Wholesalers Retailers and
Financing Financing Financing
Household
Risking Risking
Risking

Ordering Ordering Ordering

Payment Payment Payment

 Who comprises the channel?

• Manufacturers

• Intermediaries (not manufacturer, not end-user)….e.g.?

CHANNEL • Wholesalers
• Retail
• Specialized
• Perform a specific flow (promotion, financing, possession, ordering or payment flow)

• End Users
• DCM – Network of Institutions, Interrelated and Co-ordinated Efforts, Creates
Place Utility, Creates Time Utility, Creates Convenience Values, Creates Possession
Utility: Right Place, Time and Form
 B2C and B2B Channel: Levels of Distribution Channel

B2C B2B

Hybrid

Direct Indirect Indirect Indirect

Functions of Distribution Channel
How to choose a Channel?
How to choose a Channel?
How to choose a Channel?
Wholesalers – who are they?

• Three major types:

1. Merchant wholesalers
2. Agents, brokers, and commission merchants
3. Manufacturers’ sales branches and offices

• What are the task performed by Merchant Wholesalers?

• Modern well-managed merchant wholesalers perform the following
types of distribution tasks for producers and manufacturers:
1. Providing market coverage
2. Making sales contacts
3. Holding inventory
4. Processing orders
5. Gathering market information
6. Offering customer support
• Merchant wholesalers are equally well suited to perform the
following distribution tasks for their customers:
1. Assuring product availability
2. Providing customer service
3. Extending credit and financial assistance
4. Offering assortment convenience
5. Breaking bulk
6. Helping customers with advice and technical support
Marketing Channel and the Environment
Major Environment

• Economic environment
• Competitive environment
• Sociocultural environment
• Technological environment
• Legal environment
 The Economic Environment
• Recession
• Channel members-Substantial reductions in sales volume and
profitability
• Firms-heavy inventories

• Inflation=Consumer Price Index(CPI)

• Buy now before the price goes higher
• Hold on to your money

• Deflation
• Difficulties to pass cost induced price increases through the channel

• Other economic issues

• Huge national debt, the trade deficit, the government budget deficit
Competitive Environment

Types of competition:
1. Horizontal competition
2. Intertype competition
3. Vertical competition
4. Channel system competition
 The Sociocultural Environment

• Age patterns of the population

• generation Y, N vs. Silver generation
• Changing ethnic mix
• Minority markets
• Educational trends
• Higher learning students (12 millions):information, more
services
• Family or household structure
• Smaller families, child-free couples, single
• Changing role of women
• 80%:30s~40s yrs career oriented women
 The Technological Environment

• The Internet and electronic marketing channels

• Scanners, computerized inventory management, and portable
computers
• Universal product code (UPC)
• Electronic data interchange (EDI)
• Teleshopping, computershopping, and home shopping : Net TV
• Other technological innovations
• Computer salespeople, strategic alliance
 Legal Environment

• Legal issues in channel management

• Dual Distribution, or multi-channel distribution

Producer or manufacturer uses 2 or more different channel structures for distributing the same product
• Exclusive Dealing
Supplier requires its channel members to sell only its products or to refrain from selling directly to
competitive suppliers
•Full-Line Forcing
Supplier requires channel members to carry a full-line of its products in order to sell any particular
products in supplier’s line
 Legal Environment

• Legal issues in channel management

• Price Discrimination
Supplier sells at different prices to the same class of channel members
• Price Maintenance
Supplier dictates prices charged by channel members to their customers
• Refusal to Deal
Supplier has right to refuse to deal with whomever they want as channel members
 Legal Environment

• Legal issues in channel management

• Resale Restrictions
Manufacturer attempts to stipulate to whom and in what geographical market channel members may
resell the manufacturer’s products
• Tying Agreements
Supplier sells a product to a channel member on condition that the channel member also purchase
another product

• Vertical Integration
Firm owns and operates organizations at other levels of the distribution channel
Channel Structure Exercise

1. For an apparel brand

2. For electronics product like iphone
3. For movie production company
4. For a data-processing equipment
5. For insurance product
6. For OLX
Use solid lines for physical product or service
Use dotted line for information / negotiation flow
Impact of Environment in a Marketing Channel
Context

Producers and
manufacturers
Locus of channel
Member management
participants
Environment: Intermediaries
1. Economic
2. Sociocultural
3. Competitive
4. Legal Target
5. Technological markets

Nonmember
participants Facilitating
agencies

Channel manager’s analysis of environmental impact must include all channel participants
 Thank You

Next Session: Case Discussion: Arvind Lifestyle Brands