KKH/DM/BU-1

DISTRIBUTION MGT (D.M.)
D.M. HAS 2 PARTS : DISTRIBUTION CHANNEL (DC) & PHYSICAL DISTRIBUTION/ MARKETING LOGISTICS (ML) DISTRIBUTON CHANNEL (MARKETING CHANNEL/TRADE CHANNEL IS A SET OF INTERDEPENDENT ORGANISATIONS INVOLVED IN THE PROCESS OF MAKING A PRODUCT/SERVICE www.a2zmba.com AVAILABLE FOR USE/ CONSUMPTION.

KKH/DM/BU-2

ML CONSISTS OF DELIVERING COMPLETED PRODUCTS TO CHANNEL INTERMEDIARIES & END USERS / CONSUMERS. FUNCTIONS & FLOWS IN MARKETING CHANNELS (A) MARKETING CHANNEL MEMBERS (E.G. MANUFACTURERS, WHOLESALERS, RETAILERS, BANKS/FIN.INSTITUTIONS, TRANSPORT CARRIERS, ETC) DO ONE OR MORE OF THE FOLLOWING FUNCTONS / TASKS / WORK.
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KKH/DM/BU-3

(i) PROMOTION: TO COMMUNICATE ABOUT PRODUCTS, TO GENERATE DEMAND/ATTRACT CUSTOMERS. IT INCLUDES ADS,S.P., PERSONAL SELLING, D.M., PUBLICITY. (ii) NEGOTIATION: AGREEMENT BETWEEN A BUYER & A SELLER, SO AS TO TRANSFER OWNERSHIP/POSSESSION. (iii) PHYSICAL DISTRIBUION: PHYSICAL FLOW/MOVEMENT OF GOODS FROM MANUFACTURER TO FINAL CUSTOMER. IT INCLUDES MANY ACTIVITIES : TRANSPORTATION, INVENTORY MGT., WAREHOUSING, ORDER PROCESSING / CUSTOMER SERVICE, ETC. www.a2zmba.com

E.a2zmba. WHO PAY THEIR BILLS THRU‟ BANK / FIN. COMPETITORS. (v) FINANCING / CREDIT / PAYMENT: EXTENDING CREDIT TO CUSTOMERS. (EG: 2 – WHEELERS. GEN.KKH/DM/BU-4 (iv) INFORMATION : COLLECTING & SPREADING MARKET INFO.CUSTOMERS NEED PREVENTIVE MAINTENANCE/REPAIRS DURING/OUTSIDE WARRANTY PERIOD.I. ENVIRONMENT.INSITUTIONS OR DIRECTLY TO SUPPLIERS (vi) AFTER – SALES SERVICE: DEPENDING UPON SERVICE/PRODUCT. CUSTOMERS.com . SETS) www.

www. AS SHOWN. FINANACING. PROMOTION) (B) FLOWS IN MARKETING CHANNEL.KKH/DM/BU-5 DEPENDING ON WHO CAN DO ABOVE FUNCTIONS EFFICIENTLY.a2zmba. THE MANUFACTURER SHIFTS/SHARES SOME FUNCTIONS WITH INTERMEDIARIES (EG STORAGE/INVEN.CARRING.com . A FLOW IS THE MOVEMENT OF FUNCTIONS/TASKS PERFORMED BY CHANNEL MEMBERS.

com .(i) PROMOTION FLOW / MOVEMENT MANUF'ER KKH/DM/BU-6 (ii) NEGOTIATION FLOW (iii) PHYSICAL FLOW / DISTRIBUTION www.a2zmba.

(iv) TITLE / OWNERSHIP FLOW MANUF'ER KKH/DM/BU-7 (v) INFORMATION FLOW (vi) ORDERING FLOW MANUF'ER (vii) PAYMENT FLOW www.com .a2zmba.

a2zmba. PHY. NEGOTIATION & FINANCING. (B) BACKWARD FLOWS ARE ORDERING & PAYMENT.com .KKH/DM/BU-8 FLOWS / MOVEMENTS IN CHANNEL ARE GROUPED AS (A) FORWARD FLOWS ARE PROMOTION. & OWNERSHIP/TITLE.DISTRI‟N. www. (C) BOTH DIRECTION FLOWS / MOVEMENTS ARE INFORMATION.

AS SHOWN HEREAFTER. www.a2zmba.com .KKH/DM/BU-9 ANALYSING MARKETING CHANNEL STRUCTURES MARKETING CHANNEL STRUCTURES VARY BY (1) CHANNEL LEVELS/CHANNEL LENGTH – WHICH IS BASED ON NUMBER OF INTERMEDIARIES & (2) DEGREE OF SPECIALISATION IN FUNCTIONS / FLOWS.

com .a2zmba.KKH/DM/BU-10 BASED ON CHANNEL LENGTH/LEVELS DIFFERENT TYPES OF CHANNEL STRUCTURES ZERO LEVEL MANUF'ER ONE LEVEL MANUF'ER TWO LEVELS MANUF'ER THREE LEVELS MANUF'ER DIRECT MARKETING DIRECT SELLING (ZEROINTERMEDIARIES) RETAILER RETAILER DIRECT CHANNEL www.

www.MULTI CHANNEL MATRIX STRUCTURES (BASED ON SPECILISATION OF FUNCTIONS) MANUFACTURER KKH/DM/BU-11 DIRECT CHANNEL INDIRECT CHANNEL NOTE : INDIRECT CHANNELS ARE TYPICALLY USED FOR CONSUMER MARKETING (EXCEPT B2C) & DIRECT / MATRIX CHANNEL STRUCTURES ARE USED MORE IN INDUSTRIAL MKG.com .a2zmba.

www.KKH/DM/BU-12 CRITERIA FOR HARMONIOUS RELATIONSHIP DIVERGENT CONVERGENT MISUNDERSTOOD HARMONIOUS RELATIONSHIP RELATIONSHIP ACRIMONIOUS RELATIONSHIP MISMANAGED RELATIONSHIP GOALS HARMONIOUS RELATIONSHIP EXISTS IF GOALS ARE CONVERGENT (SIMILAR).com . & THE PROCESS OF DELIVERING SERVICE TO CONSUMERS IS EFFICIENT & EFFECTIVE.a2zmba.

KKH/DM/BU-13 TYPES OF RELATIONSHIPS IN MARKETING CHANNEL AD .com .HOC ALLIANCE RELATIONSHIP TRANSACTION RELATIONSHIP ON-GOING PARTNERING RELATIONSHIP COOPERATIVE RELATIONSHIP www.a2zmba.

KKH/DM/BU-14 1. WHAT IS RETAILING? IT IS SELLING GOODS / SERVICES TO FINAL CONSUMERS FOR PERSONAL / FAMILY USE. MAIL. PHONE. STREET. BY PERSON.com . GOODS / SEVICES MAY BE SOLD IN STORES / SHOPS.a2zmba. OR CONSUMER‟S HOME. NOT FOR BUSINESS USE. www. INTERNET OR VENDING M/C.

com . RETAILERS ACTIVITIES: (i) PROVIDING ASSORTMENT. (iii) HOLDING INVENTORY. IMPORTANCE / ROLE OF RETAILER * RETAILER IS THE FINAL BUSINESS IN A CHANNEL. THAT LINKS A MANUFACTURER TO CONSUMERS. (ii) BREAKING BULK. * RETAILERS PERFORM IMPORTAN ACTIVITIES THAT INCREASE PRODUCT / SERVICE VALUE BY 20-50% OF FINAL COST OF MERCHANDISE.KKH/DM/BU-15 2. www.a2zmba. (iv) PROVIDING SERVICES.

EG: SHIFT IN CONSUMPTION HABIT OF OVER 1 BILLION PEOPLE (DUE TO TV. PRODUCT-MIX MAY VARY) COOKING OIL & VANASPATHI CONSUMPTION IS 1/3 OF RURAL EXPENDITURE ON FMCG PRODUCTS. RETAIL ENVIRONMENT • KKH/DM/BU-16 • • • • • • • • IT IS CHANGING IN INDIA.5 BILLION INVESTMENTS (70. URBAN POPULATION IS 30% OF TOTAL POPULATION.3.000 # EMPLOYMENT) (IN 10 YRS) >1000 LARGE / SMALL WORLD CLASS RETAIL STORES IN INDIA BY 2005. SOCIO-ECONOMIC DIFFERENCES (HENCE. 20% RETAILERS OFFER CREDIT TO CUSTOMERS. www. 50% TEA CONSUMED IN RURAL INDIA.com . 50% OF POPULATION < 20 YEARS AGE.a2zmba. MULTI-CULTURAL. LIBERALISED ECONOMY & DEMANDING CONSUMERS) USD 2.

com . HIGH ELECTRICITY COSTS.KKH/DM/BU-17 MAJOR FACTORS AFFECTING RETAILING IN INDIA        HIGH REAL-ESTATE COSTS.MAHDA 1976 ACT). www. HIGH INTEREST COSTS. CORRUPTION. UNPLANNED CITIES. ABSURD RENT CONTROL LAWS (EG . WEAK CONSUMER LAWS.a2zmba.

CONTROLS PRICE PROMOTION www. & SALE PROMOTION MGRS / FUNCTIONS BUYING INVENTORY OWNER . HRM DISTRIBUTION MGRS / FUNCTIONS ACCOUNTANT FIN.MANAGER STRATEGIC MGT. RETAIL (ORGN. (i) ORG. STRUCTURE OF A SMALL RETAILER RETAIL STRATEGY RETAIL FORMAT MERCHANDISE MGT MARCHANDISE. CONTROL STORES. ADV. ORGANISATION STRUCTURE SELECT LOCATIONS FIN.com .) STRUCTURES ORGANISATION STRUCTURES DIFFER BASED ON TYPE / SIZE OF THE RETAILER.KKH/DM/BU-18 4.a2zmba.

P. V.a2zmba. www. V. STORES MGR. SERVICE Sr. STORES Sr. HRM TRAIN -ING PLAC'T COMPE NSATION CUST. P. V. P.KKH/DM/BU-19 (ii) ORIGINAL STRUCTURE OF A DEPARTMENT STORE CHAIN CHAIRMAN / PRESIDENT V.P. P. V.. EVE NTS STORES MGRS. DIST STORES DISTRIBUTION MERCHANDISE PLANNING STORE CONSTRUCTION MERCHANDISE MGRS BUYERS REGN. P.PL. SP. MRKTG Sr. Sr MERCHANDISE Sr.com . FIN A/Cs EXPN CONTROL INVENTORYCON MIS Sr. V. ADV. V. P.

LIMITED DEPTH. EG: CLOTHING. PRICES SAME AS DEPARTMENT STORES LOW WAITING TIME. FOR DIFFERENT PRODUCTS MERCHANTISE. FOOD ITEMS. LOW WAITING TIME. (ii) SPECIALITY STORE : LIMITED NUMBER OF PRODUCT LINE WITH GREAT DEPTH OF SELECTION .KKH/DM/BU-20 5) RETAIL BASED CHANNEL FORMATS OR TYPES OF RETAILERS (i) CONVENIENCE STORE : CONVENIENTLY LOCATED.com .a2zmba. BROAD VARIETY. LOW WAITING TIME. APPLIANCES. SPATIAL (SPACE) CONVENIENCE. (iii) DEPARTMENT STORE : ORGANISED INTO SEPARATE DEPARTMENTS. WIDE VARIETY OF PRODUCTS WITH MODERATE DEPTH. www. SMALL GROCERY STORE HIGH MARGIN.

SHOPPING MALLS. TARGET CONSUMERS ARE LOW/MIDDLE INCOME GROUPS. LESS SERVICE.000 SQ.a2zmba. SHOPPING BEHAVIOUR (i) SHOPPING NEEDS : MANY PRODUCTS SATISFY (a) FUNCTIONAL / RATIONAL NEEDS. www. LESS DEPTH MERCHANTISE. SUPER MARKETS (20. LOWER (DISCOUNTED) PRICES.(iv) DISCOUNT STORE : KKH/DM/BU-21 WIDE VARIETY. OTHER TYPES OF RETAILERS ARE SUPER STORES (20. AND/OR (b) PSYCHOLOGICAL / EMOTIONAL NEEDS.FT) SELF-SERVICE FOOD STORES 6.FT).com .000 SQ. LOW COST LOCATIONS.000-50.

a2zmba.com .KKH/DM/BU-22 (ii) TYPES OF BUYING DECISION MAKING : (a) EXTENDED PROBLEM SOLVING (HIGH RISK & UNCERTAINITY) (b) LIMITED PROBLEM SOLVING – IMPULSE PURCHASE (MODERATE RISK & UNCERTAINITY) (c) HABITUAL DECISION MAKING (LOW RISK & UNCERTAINITY). STORE LOYALITY ARE EXAMPLES.BRAND LOYALITY. www.

a2zmba.com EVALUATE CHOICE .KKH/DM/BU-23 STEPS / STAGES IN STORE SELECTION & BUYING PROCESS STAGES IN BUYING PROCESS (UNSATISFIED) NEED RECOGNITION INFORMATION SEARCH PRE-STORE VISIT NEED RECOGNITION SEARCH FOR RET-AILERS EVALUATE RETAILERS SELECT A RETAILER VISIT THE STORE IN-STORE VISIT NEED RECOGNITION SEARCH FOR MER-CHANDISE EVALUATE MERCHANDISE SELECT MERCHANIDISE PURCHASE MERCHANDISE POST PURCHASE EVALUATION www.

a2zmba. (ii) CONDUCT SITUATIONAL AUDIT (SWOT). www.KKH/DM/BU-24 RETAIL PLANNING & STRATEGIES CONSIST OF FOLLOWING STEPS (i) DEFINE BUSINESS MISSION. (iii) DECIDE OBJECTIVES & GOALS.com . (v) DEVELOP FINANCIAL STRATEGY. (iv) EVOLVE RETAIL STRATEGY. (vi) PREPARE ACTION PLAN (PERT-CPM) (vii) IMPLEMENTATION & CONTROL.

IT INCLUDES : (i) GOODS/SERVICES OFFERED. (b) RETAIL FORMAT/RETAIL MARKETING MIX.KKH/DM/BU-25 RETAIL STRATEGY CONSISTS OF (a) TARGET MARKET SEGMENTS.a2zmba. (ii) PRICING. (iv) STORE LOCATION. DESIGN & VISUAL MERCHANTISE. (iii) PROMOTION. (v) CUSTOMER SERVICE www.com .

(ii) LOCATION.com .a2zmba. www. CAN BE BUILT BY FOLLOWING AREAS: (i) CUSTOMER LOYALTY. (iii) VENDOR RELATIONS.KKH/DM/BU-26 (c) SUSTAINABLE COMPETITIVE ADVANTAGE. (iv) MANAGEMENT INFORMATION & DISTRIBUTION SYSTEMS. (v) LOW-COST OPERATIONS.

a2zmba.com . (ii) ASSORTMENT(DEPTH) (iii) SERVICE LEVEL www.KKH/DM/BU-27 MERCHANDISE PLAN RETAILER PLANS (a) WHAT TYPE OF MERCHANDISE (GOODS) TO BUY. THIS DEPENDS ON RETAIL STRATEGY 3. FACTORS ARE RELEVANT : (i) VARIETY(BREADTH).

com . www. INVENTORY (ii) TURNOVER NET SALES AVERAGE INVENTORY AT RETAIL THIS CAN BE CALCULATED ON MONTHLY / QUARTERLY / YEARLY BASIS. RAPID INVENTORY TURNOVER SHOWS FINANCIAL SUCCESS.KKH/DM/BU-28 (c) HOW MUCH TO BUY.a2zmba.“TOP DOWN”. “BOTTOM-UP” APPROACH & FORECASTING METHODS. DEPENDS ON : (i) SALES FORECAST .

IT INCLUDES: (i) SELECTING VENDORS/SUPPLIERS. PROCUREMENT FOCUSES ON BUYING MERCHANDISE.com .NEGOTIATING.PROCUREMENT & DESTRIBUTION AFTER MERCHANTISE PLAN IS MADE.a2zmba. VENDOR CUSTOMER KKH/DM/BU-29 www. RETAIL DISTRIBUTION / LOGISTICS IT IS PHYSICAL FLOW OF MERCHANDISE FROM THE SOURCE OF SUPPLY TO CUSTOMER. (iii) DEVELOPING RELATIONSHIP. (ii) MEETING.

AS COST OF SPACE IS LESS.com . CHECKING. RECEIVING.KKH/DM/BU-30 SOME RETAILERS HAVE DISTRIBUTION CENTER TO STORE BUFFER STOCKS. www. DIRECT DISTRIBUTION TO STORES IS BETTER. MARKING. STORING. DISTRIBUTION CENTER ACTIVITIES : TRANSPORTATION. FILLING ORDERS.a2zmba. IF RETAILER HAS FEW STORES.

MOTIVATING.com . MEASURING & EVALUATING PERFORMANCE.a2zmba. (ii) MANAGING MERCHANDISE. (iv) INVENTORY CONTROL. (v) STORE PERFORMANCE EVALUATION. (iii) CUSTOMER SERVICE. SELECTING. www. TRAINING.KKH/DM/BU-31 RETAIL (STORE) MANAGEMENT INCLUDES THE FOLLOWING: (i) MANAGING STORE EMPLOYEES : RECRUITING.

R. DEPARTMENT. BUT EVALUATION IS DONE BY IMMEDIATE SUPERVISOR.KKH/DM/BU-32 • PERFORMANCE EVALUATION SYSTEM IS DESIGNED BY H.com . www. • BOTH YEARLY/HALF YEARLY REVIEW + FREQUENT APPRAISALS ARE DONE. • SUBJECTIVE & OBJECTIVE CRITERIA SHOULD BE USED.a2zmba.

 WHOLESALER/DISTRIBUTOR SMALL DIFFERENCE IS IGNORED.com . INDUSTRIAL & INSTITUTIONAL USERS. www.a2zmba.KKH/DM/BU-33 WHOLESAILING (B2B)  IT INCLUDES SELLING PRODUCTS TO BUSINESSES LIKE RETAILERS. BUT NOT TO HOUSEHOLD CONSUMERS.  TERMINOLOGIES/TERMS VARY IN INDUSTRY. CONTRACTORS & MERCHANTS.

KKH/DM/BU-34 • • • • IMPORTANCE OF WHOLESAILING LARGEST SALES IN WHOLESALE TRADE. www. STEADY GROSS MARGINS.com .a2zmba. PERFORM IMPORTANT TASKS/ FUNCTIONS. SALES GROWTH > ECONOMIC GROWTH.

com . WAREHOUSING/STORAGE-INVENTORY HOLDING.KKH/DM/BU-35 • • • • • • • • FUNCTIONS/TASKS PERFORMED BY WHOLESALERS/ DISTRIBUTORS. BUYING & ASSORTMENT BUILDING. TRANSPORTATION FINANCING RISK BEARING. www.a2zmba. BULK BREAKING. SELLING & PROMOTING. MARKET INFORMATION.

a2zmba.com .KKH/DM/BU-36 STRUCTURE OF WHOLESAILING www.

THEY ARE CALLED JOBBERS.a2zmba. ARRANGE DELIVERIES. www. INDEPENDENT BUSINESSES.com .KKH/DM/BU-37 DIFFERENT FORMATS / TYPES OF WHOLESALERS (A) MERCHANT WHOLESALERS.DISTRIBUTORS OR MILL SUPPLY HOUSES. BY MERCHANDISE. OFFER CREDIT. TWO CATEGORIES: (i) FULL-SERVICE WHOLESALERS: THEY CARRY STOCK. HAVE A SALES FORCE.

CREDIT. DELIVARY. www.com . (b) INDUSTRIAL DISTRIBUTORS : SELL TO MANUFACTURERS.KKH/DM/BU-38 TWO TYPES OF FULL – SERVICE WHOLESALERS (a) WHOLESALE MERCHANTS SELL TO RETAILERS &GIVE FULL RANGE OF SERVICES.a2zmba. GIVE SERVICES LIKE STORAGE.

a2zmba.com . BUSINESS CUSTOMERS) CASH & CARRY W/S.KKH/DM/BU-39 FULL SERVICE W/S W/S MERCHANTS (SELL TO RETAILERS) INDUSTRIAL DISTRIBUTORS (SELL TO. HOSPITALES) LIMITED SERVICE W/S (B) BROKERS DROP SHIPPERS (OPEATE HEAVY EQUIPT) RACK JOBBERS (SELL TO DRUG / GROCERY RETAILERS) MAIL ORDER W/S (SPECIALITY FOODS) FORMATS / TYPES OF WHOLESALERS (W/S) PRODUCERS' COOPERATIVES (FARM PRODUCTS) (C) AGENTS MANUFACTURER'S REPS. OTHER BUSINESSES) www. EQPTS. (AGENTS) SELLING AGENT (D) MANF'S RETAILERS BRANCH O/Fs (E) MISCELLANEOUS W/S PURCHASING AGENT AGRICULTURAL ASSEMBLERS PETROLEUM BULK PLANTS / TERMINALS AUCTION COMPANIES (CARS. (SELL FMCG TO SMALL RETAILERS FOR CASH) TRUCK W/S (SELL SEMI PERISHABLES TO RETAILERS.

FOLLOWING TYPES: (a) CASH & CARRY WHOLESALERS HAVE LIMITED FMCG PRODUCTS. www. SELL TO SMALL RETAILERS FOR CASH.a2zmba. RESTAURANTS (c) DROP SHIPPERS OPERATE IN BULK INDUSTRIES LIKE HEAVY EQUIPMENT TO SHIP FROM MANUFACTURER TO CUSTOMER.KKH/DM/BU-40 (ii) LIMITED SERVICE WHOLESALERS OFFER FEW SERVICES TO SUPPLIERS & CUSTOMERS. HOSPITALS. (b) TRUCK WHOLESALERS SELL & DELIVER LIMITED SEMI-PERISHABLE MERCHANDISE TO RETAIL STORES.com .

BILL FOR GOODS SOLD TO CONSUMERS. NEGOTIATION HELP. www. DELIVER.com . (B) BROKERS : BRING BUYERS & SELLERS TOGETHER. DISPLAY. (f) PRODUCERS CO-OPERATIVES : COLLECT & SELL FARM PRODUCTS.KKH/DM/BU-41 (b) RACK JOBBERS SELL TO GROCERY & DRUG RETAILERS. EX: REAL ESTATE. (e) MAIL-ORDER WHOLESALERS. KEEP STOCK RECORDS.a2zmba. COMMISSION PAID BY PARTY WHO HIRED THEM.

com (iii) AUCTION COMPANIES. (D) MANUFACTURERS’ & RETAILERS’ BRANCH OFFICES (E) MISCELLANEOUS WHOLESALERS (i) AGRICULTURAL ASSEMBLERS. www. (ii) PETROLEUM BULK PLANTS / TERMINALS.KKH/DM/BU-42 (C) AGENTS : REPRESENT EITHER BUYERS/SELLERS. (i) MANUFACTURER‟S REPRESENTATIVES / AGENTS. .a2zmba. (ii) SELLING AGENTS (iii) PURCHASING AGENTS (iv) COMMISSION MERCHANTS.

com . SELECTION OF WHOLESALERS DEPEND UPON : (i) GIVING VALUE-ADDED SERVICES AS PER NEEDS OF MANUFACTURERS & RETAILERS. TIMELY PAYMENTS & MARKET INFORMATION. www.a2zmba.  WHOLESALER INDUSTRY IS VULNERABLE. (ii) REDUCING COSTS WITH MODERN MATERIAL HANDLING & I. (iii) FULFILLING COMMITMENTS (AS PER AGREEMENTS) LIKE SALES VOLUME.T.SELECTION & USING WHOLESALERS KKH/DM/BU-43  WHOLESALERS ARE USED WHEN THEY ARE MORE EFFECTIVE & EFFICIENT IN PERFORMING IMPORTANT FUNCTIONS/TASKS.

(ii) SELECT PROFITABLE PRODUCTS & SERVICES. (v) DEVELOP AUTOMATED WAREHOUSES & SUPERIOR MIS & ORDER PROCESSING.com . (iv) DEVELOP OVERALL PROMOTION STRTEGY.a2zmba. (iii) NEW PRICING STRATEGIES. www. (b) IMPROVE DECISIONS ON (i) TARGET MARKET & RELATIONSHIP BUILDING.KKH/DM/BU-44 WHOLESALE STATEGIES (a) INCREASE PRODUCTIVITY BY BETTER MANAGEMENT OF INVENTORIES & RECEIVABLES.

B. www. EVALUATE CHANNEL ALTERNATIVES & CHOSE A CHANNEL SYSTEM.com . D. DECIDE CHANNEL OBJECTIVES & CONSTRAINTS.a2zmba.KKH/DM/BU-45 CHANNEL PLANNING DESIGNING CHANNEL SYSTEM STEPS ARE : A. C. IDENTIFY MAJOR CHANNEL ALTERNATIVES. UNDERSTAND SERVICE OUTPUTS NEEDED BY TARGET CUSTOMERS.

KKH/DM/BU-46

(A) UNDERSTAND SERVICE OUTPUTS NEEDED BY TARGET CUSTOMERS SOME OF THE SERVICE OUTPUTS ARE : (i) LOT SIZE, (ii) WAITING TIME, (iii) SPATIAL (SPACE) CONVENIENCE. (iv) PRODUCT VARIETY/ASSORTMENT. (v) SERVICE BACK-UP. IF A CHANNEL GIVES MORE SERVICE OUTPUTS, COST & PRICES GO UP. OPPOSITE IS TRUE. EX: DISCOUNT STORES.
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KKH/DM/BU-47

(B) DECIDE CHANNEL OBJECTIVES & CONSTRAINTS. (i) CHANNEL OBJECTIVES VARY WITH DIFFERENT MARKET SEGMENTS. CHANNEL OBJECTIVES ARE “ TARGETED SERVICE OUTPUT LEVELS”. (ii) CHANNEL OBJECTIVES VARY WITH PRODUCT CHARACTERISTICS. (iii) STRENGTHS & WEAKNESSES (CONSTRAINTS) OF DIFFERENT INTERMEDIARIES MUST BE CONSIDERED. (iv) CONSTRAINTS OF ENVIRONMENT MUST BE CONSIDERED.
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KKH/DM/BU-48

(C) IDENTIFY MAJOR CHANNEL ALTERNATIVES. CONSIDER 3 ELEMENTS OF CHANNEL ALTERNATIVES: (i) TYPES OF INTERMEDIARIES. (ii) NO. OF INTERMEDIARIES : EXCLUSIVE, SELECTIVE, INTENSIVE DISTRIBUTION. (iii) TERMS & RESPONSIBILITIES : PRICE POLICY, CONDITIONS OF SALE, TERRITORIES RIGHTS, SERVICES & RESPONSIBILITIES.
www.a2zmba.com

ESTIMATE COST OF SELLING DIFFERENT SALES VOLUME THRU‟ EACH CHANNEL.a2zmba. DEGREE OF CONTROL VARIES WITH DIFFERENT CHANNELS. CRITERIA USED FOR EVALUATION : (i)ECONOMIC CRITERIA.KKH/DM/BU-49 (D) EVALUATE MAJOR CHANNEL ALTERNATIVES & SELECT A CHANNEL SYSTEM. (ii) CONTROL (iii) ADAPTIVE CRITERIA. www.com . THE MANUFACTURER NEEDS CHANNELS WHICH ADAPT TO CHANGING NEEDS OF MARKETS.

KKH/DM/BU-50 ORGANISATIONAL PATTERNS IN MARKETING CHANNELS. THEY WERE UNSTABLE & COULD NOT ACHIEVE www. CHANNEL MEMBERS BARGAINED OVER EACH TRANSACTION. RETAILERS. .a2zmba. DIFFERENT CHANNEL SYSTEMS ARE DEVELOPED THESE ARE: (1) CONVENTIONAL (FREE FORM) MARKETING CHANNEL CONSISTS OF INDEPENDENT FIRMS REPRESENTING MANUFACTURER. WHOLESALERS. EACH SEEKS TO MAXIMISE OWN PROFITS.com ECONOMIES AND SUPERIOR SERVICE. TO DELIVER SERVICE OUTPUTS DESIRED BY ENDUSERS. NO MEMBER HAS CONTROL OVER OTHER CHANNEL MEMBERS.

BEHAVE BETTER. THE CHANNEL LEADER. (B)“SOFT” VERTICAL INTEGRATION.com INCLUDES .a2zmba. CHANNEL. & HAVE LESS CONFLICT.KKH/DM/BU-51 (2)VERTICAL INTEGRATION / VERTICAL MARKETING SYSTEM (VMS) TO IMPROVE EFFECTIVENESS & EFFICIENCY OF FREE FORM/CONVENTIONAL MKT. VERTICAL MARKETING SYSTEM (VMS) HAS EMERGED. THERE ARE TWO TYPES OF VERTICAL INTEGRATION : (A)“HARD” VERTICAL INTEGRATION (CORPORATE VMS). WHICH www. IT IS A UNIFIED SYSTEM IN WHICH ONE MEMBER. OWNS OTHERS OR HAS SO MUCH POWER THAT OTHERS COOPERATE.

a2zmba. & (B2) CONTRACTUAL VMS. www.KKH/DM/BU-52 (B1) ADMINISTERED VMS. THIS STRATEGY IS FOLLOWED BY COMPANIES (EX BATA & CG-TRANF& HTSG) WHEN PRODUCTION AND DISTRIBUTION ARE COMBINED UNDER SINGLE OWNERSHIP.com . (A) “HARD” VERTICAL INTEGRATION INCLUDES OWNERSHIP OF THE CHANNEL BY ONE FIRM THRU‟ GROWTH/ACQUISITION.

a2zmba.KKH/DM/BU-53 www.com .

KKH/DM/BU-54 DEGREES OF VERTICAL INTEGRATION & OUTSOURCING.a2zmba.com . DECISIONS ON “MAKE-OR-BUY” ARE SAME AS VERTICAL (FORWARD) INTEGRATION OR OUTSOURCE. www. IN MARKETING CHANNELS.

a2zmba. . CAUTION : IF A VENDOR GETS KEY INFORMATION. REASONS : (I) LESS COST (II) LESS CAPITAL INVESTMENT. WAREHOUSING. OUTSOURCING ACTIVITIES INCLUDE INVOICING. SHIPPING. ETC.KKH/DM/BU-55 OUTSOURCING IS BUYING GOODS / SERVICES FROM OUTSIDE VENDORS.. IN DISTRIBUTION MGT. (III) BETTER QUALITY. SELLING.com COMPETITOR. IT CAN BECOME A www. FINANCING.

• MARKET POTENTIAL OF E-CHANNELS IS HIGH. www.a2zmba. AFTER E-MAIL & RESEARCHING/ GETTING INFORMATION. ALTHOUGH PRESENTLY SMALL.com . • ON – LINE SHOPPING IS THIRD MOST POPULAR ACTIVITY ON THE INTERNET. IT IS SIMILAR TO E-COMMERCE.KKH/DM/BU-56 ELECTRONIC CHANNELS • IT MEANS REACHING & SELLING GOODS/SERVICES TO END-USERS ELECTRONICALLY-BY USING THE INTERNET.

OTHER SYSTEMS LIKE ISDN.a2zmba. DSL. CABLE MODEM ARE COSTLY.KKH/DM/BU-57 • SOME OF THE PROBLEMS OF E-CHANNEL ARE : (i) HOW VAT (VALUE ADDED TAXES) WILL BE COLLECTED FOR ON LINE SALES? (ii) ON-LINE-PAYMENTS PROBLEMS. www. (iii) DIAL-UP SYSTEM IS SLOW FOR ACCESSING WEB-SITES.com .

PRODUCTS / BRANDS NOT AVAILABLE WHERE THE BUYER LIVE.    CAN SHOP ANY TIME. ENJOY ON-LINE SHOPPING & EASY TO SHOP.KKH/DM/BU-58 MAJOR REASONS FOR ON-LINE SHOPPING. LESS TIME THAN SHOPPING AT STORES.com . www. DON‟T LIKE CROWD AT RETAIL STORES.a2zmba.  LOWER PRICES.

DESIRED PRODUCT NOT AVAILABLE. DON‟T WANT TO PAY SHIPPING COSTS. NOT SURE ABOUT TIMELY DELIVERY.KKH/DM/BU-59 MAJOR REASONS FOR NOT MAKING ONLINE PURCHASE     PRODUCT RETURNS DIFFICULT.  ENJOY SHOPPING AT RETAIL STORES.  TOTAL COST OF BUYING MORE. www.com .a2zmba.

MANAGING CONFLICTS (i) SELLING AT LIST PRICE.a2zmba. (iv) PROMOTE. (WITHOUT DISCOUNTS) (EX.KKH/DM/BU-60 CONFLICTS DUE TO ON-LINE SALES MANUFACTURER SELLING DIRECTLY THRU‟ OWN WEB SITES. DON‟T SALE. OR OTHER ON-LINE RESELLER CAN FACE GOAL & DOMAIN RELATED CONFLICTS. www. P&G). NIKE) (ii) SELLING DIFFERENT PRODUCTS (EX. (iii) GIVE CREDIT TO OFF-LINE RETAILERS.com .

CHANNEL CONFLICTS.a2zmba. 2. • INTRA CHANNEL CONFLICT MEANS CONFLICTS WITHIN A CHANNEL. www.com . • MULTIPLE CHANNELS HAVE CONFLICTS BETWEEN 2 OR MORE CHANNELS.KKH/DM/BU-61 CHANNEL MANAGEMENT 1. CHANNEL POLICIES.

www. MANAGING CHANNEL CONFLICTS  SOME CONFLICTS CAN BE CONSTRUCTIVE.     GOAL DIFFERENCES DIFFERING PERCEPTIONS.  ASSESS CONFLICT BY INTENSITY.com . DOMAIN DIFFERENCES.a2zmba.KKH/DM/BU-62 SOURCES/CAUSES OF CONFLICTS. FREQUENCY & IMPORTANCE OF THE ISSUE. GRAY/BLACK MARKETS.

a2zmba.KKH/DM/BU-63 METHODS FOR MANAGING CONFLICTS  EXCHANGE OF PERSONS.com .  DIPLOMACY.  MEDIATION.  COOPTATION  ACHIEVING COMMON GOALS. www.  ARBITRATION.

com  LEGALITY VARIES IN COUNTRIES. PRICING & PRODUCT LINE.  SELECTIVE & EXCLUSIVE DISTRIBUTION TO MINIMISE INTRABRAND & IMPROVE INTERBRAND COMPETITION & SERVICE OUTPUTS. CHANNEL POLICIES POLICIES ARE MADE TO MANAGE THE CHANNEL & EFFORTS OF MEMBERS. 2.0.a2zmba. www. POLICIES DISCUSSED ARE: MARKET & CUSTOMER COVERAGE. MARKET COVERAGE POLICIES  INTENSIVE DISTRIBUTION MAY INCREASE INTRABRAND COMPETITION.1. .KKH/DM/BU-64 2.

PROFITS.a2zmba.KKH/DM/BU-65 2. www. FOR INTERMEDIARIES COST OF SERVICE OUTPUTS.2.com . CUSTOMER COVERAGE POLICIES  WHOM INTERMEDIARIES RESELL  PREVENT GRAY MARKETS  PREVENT INTRABRAND COMPETITION 2. AND MARKET (COMPETITORS) NORMS ARE CONSIDERED. PRICING POLICIES  MANUFACTURER HAS PRICE LIST & DISCOUNT POLICIES.3.  MAXIMUM RETAIL PRICE MAINTAINENCE (RPM) IS ADOPTED.

com . CUSTOMER SEGMENT PRICING. PREDATORY PRICING IS ILLEGAL.a2zmba. IMAGE PRICING. AS FOLLOWS: (i) (ii) (iii) (iv) (v)  VOLUME DISCOUNT.KKH/DM/BU-66  PRICE DISCRIMINATION LEGALLY ALLOWS DIFFERENT PRICES TO DIFFERENT BUYERS. LOCATION PRICING. TIME PRICING. www.

www.KKH/DM/BU-67 2. (B) TYING AND FORCING FULL PRODUCT LINE ARE HELD BY COURTS AS ILLEGAL.com . PRODUCT LINE POLICIES (A) EXCLUSIVE DEALING & TERRITORY ARRANGEMENT ARE LEGAL IF SELLER‟S MARKET SHARE IS NOT DOMINANT & COMPETITION IS NOT LESSENED SUBSTANTIALLY. IF THE ARRANGEMENT LESSONS COMPETITION SUBSTANTIALLY.a2zmba.4.

MAINTAIN.KKH/DM/BU-68  A PRODUCT MIX CONSISTS OF PRODUCT LINES. EACH PRODUCT LINE MANAGER TO DECIDE WHICH PRODUCT ITEMS TO BUILD.a2zmba. HARVEST. OR DIVEST. BASED ON SALES. MARKET PROFILE ANALYSIS.com . PROFITS. www.

(B) DATABASE USE. ELEMENTS OF CHANNEL INF-SYSTEM : (i) HARDWARE & NETWORKS.a2zmba.com . (ii) DATABASES. (i) SPATIAL (SPACE RELATED) CONVENIENCE.KKH/DM/BU-69 CHANNELS INFORMATION SYSTEMS 1. (ii) WAITING (DELIVARY) TIME REDUCTION. www. (iii) STOCKING NEEDED PRODUCTS & AVOIDING STOCK-OUTS. (A) DATABASE GENERATION. 2. IMPACT ON SERVICE.

www. (BY USING DATABASES). AS SHOWN BELOW.KKH/DM/BU-70 CUSTOMERS BY USING CHANNEL INFO. ON CHANNEL FLOW PERFORMANCE INF. 3.TECHNOLOGY HAS IMPROVED PERFORMANCE OF MAJOR CHANNEL FLOWS.SYS.com .SYSTEM.a2zmba. FAST MOVING ITEMS ARE ORDERED & SLOW MOVING PRODUCTS ARE DELETED. IT HAS INCREASED CONSUMER SATISFACTION & REDUCED COSTS. IMPACT OF INF.

a2zmba.KKH/DM/BU-71 JIT DELIVERIES REDUCE PHYSICAL POSSESSION INVENTORY NOT HELD FOR LONG TIME OWNERSHIP FLOWS (MOVEMENTS) REDUCE AT DISTRIBUTORS / RETAILERS DISCOUNT COUPONS ARE GENERATED INSTANTLY AT RETAIL CHECK OUTS REDUCTION OF PAPER WORK ENABLE BUSINESS BUYERS SPEND MORE TIME ON NEGOTIATIONS WITH SUPPLIERS PAPERWORK REDUCED DUE TO ELECTRONIC PAYMENT SYSTEMS AUTOMATIC REORDERING MINIMISES HUMAN INVOLVEMENT POINT .OF . www.com WITHOUT LOSING SALES .SALE DATA REDUCES INVENTORY.

(iii) ALLOCATE FUNCTIONAL COSTS TO VARIOUS CHANNELS. THE STEPS ARE : (i) IDENTIFY CHANNEL ACTIVITIES. THIS IS SAME AS “MARKETING COSTS & PROFITABILITY”.KKH/DM/BU-72 ASSESSING MARKETING CHANNEL PERFORMANCE 1.DISCUSSED EARLIER.com .a2zmba. www. MEASURING & EVALUATING CHANNEL MEMBERS‟ CONTRIBUTION TO CHANNEL PERFORMANCE. (iv) PREPARE P & L FOR EACH CHANNEL. (ii) CONVERT NATURAL EXPENSES TO CHANNEL ACTIVITIES/FUNCTIONS.

a2zmba. www. RESULT OF CHANNEL PERFORMANCE.com . FOCUSING ON FOLLOWING 5 FACTORS: (i) (ii) (iii) (iv) (v) TANGIBLES. THIS IS DONE BY A QUESTIONNAIRE TO MEASURE TARGET CUSTOMERS‟ PERCEPTIONS. RELIABILITY. REPONSIVENESS. CHANNEL PERFORMANCE IS ASSESSED BY AUDITING SERVICE QUALITY. EMPATHY.KKH/DM/BU-73 2. ASSURANCE.

IT IS ALSO CALLED “PHYSICAL DISTRIBUTION” www.KKH/DM/BU-74 MARKETING LOGISTICS IT IS DELIVERING THE FINAL PRODUCT TO CUSTOMERS & INTERMEDIARIES.com .a2zmba. AT DESIRED TIME & LOWEST COST.

a2zmba.KKH/DM/BU-75 IN DEMAND CHAIN MGT: A FIRM FIRST THINKS OF TARGET MARKET & ITS DEMAND. . REPLACE „CHAIN‟ WORD BY www.com „NETWORK‟ IS FURTHER IMPROVEMENT. & THEN DESIGNS SUPPLY CHAIN BY WORKING BACKWARD.

www.KKH/DM/BU-76 MISSION OF LOGISTICS MGT IS TO PLAN & COORDINATE AND INTEGRATE THOSE ACTIVITIES THAT ARE NECESSARY TO SATISFY CUSTOMER NEEDS OF EXCELLENT SERVICE AT LOWEST COST. .a2zmba.com WITHIN THE ORGANISATION.

a2zmba.com .KKH/DM/BU-77 THE SUPPLY CHAIN IS A NETWORK. www.

MANAGE & IMPROVE FLOW OF MATERIALS & INFORMATION FROM SUPPLIERS TO END USERS.OF RAW MATERIAL THRU‟ OPERATIONS TO DELIVARY OF www. ACTIVITIES OF SCM ARE DESIGN OF PRODUCT. PLANNING & FORECASTING.a2zmba. LOGISTICS SCOPE STARTS FROM MGT. MATERIAL HANDLING. . PURCHASE. ORDER PROCESSING. WAREHOUSING. INVENTORY CONTROL.com FINAL PRODUCT TO CUSTOMERS.SUPPLY CHAIN MGT (SCM) KKH/DM/BU-78 IT IS A NETWORK OF CONNECTED & INTERDEPENDENT FIRMS COOPERATIVELY WORKING TO CONTROL. CUSTOMER SERVICE. PRODUCTION.

COMPETITIVE STRATEGIES ARE: • PERFORM VALUE CHAIN ACTIVITIES (PORTER‟S) MORE EFFICIENTLY & DIFFERENTLY THAN COMPETITORS..com BUILDING WITH SUPPLIERS & CUSTOMERS. • USE LOGISTICS CONCEPT (& SCM) TO INTEGRATE DISTRIBUTION. OPERATIONS.KKH/DM/BU-79 LOGISTICS & COMPETITIVE STRATEGY. .a2zmba. GOALS/COMPETITIVE ADVANTAGE A FIRM WANTS TO ACHIEVE DELIVERING SUPERIOR CUSTOMER SERVICE AT LOWER COST/SUPERIOR CUSTOMER VALUE. PROCUREMENT WITHIN THE FIRM & NETWORK (RELATIONSHIPS) www.

a2zmba. TO SATISFY DIFFERENT NEEDS OF CUSTOMERS.com . (iii) POST-TRANSACTION / POST-SALES SERVICE. • “PERFECT ORDER” ACHIEVEMENT CAN BE USED TO MEASURE SERVICE PERFORMANCE & TO SET SERVICE STANDARDS. • SERVICE MUST BE CUSTOMISED.KKH/DM/BU-80 CUSTOMER SERVICE DIMENSION • IT HAS MANY ELEMENTS WHICH ARE GROUPED IN 3 CATEGORIES: (i) PRE-TRANSACTION / PRE-SALES SERVICE. (ii) TRANSACTION / DURING-SALES SERVICE. www.

com .KKH/DM/BU-81 DEVELOPING LOGISTICS ORGANISATION & MANAGEMENT. www. HOW TRADITIONAL ORGANISATION PROCESSES A CUSTOMER ORDER. 1. IT IS SEQUENTIAL & TAKES A LONG TIME.a2zmba.

IS INPUT FOCUSED & BUDGET DRIVEN.com ADVANTAGE.KKH/DM/BU-82 2. STRUCTURE IS ON FUNCTIONAL BASIS. IT CANNOT INTEGRATE LOGISTICS MGT. THIS ORG.a2zmba.TO ACHIEVE COMPETITIVE www. CONVENTIONAL (VERTICAL) ORG. .

HORIZONTAL ORG. HENCE.KKH/DM/BU-83 3. (C) BUILT ON MULTI FUNCTIONAL TEAMS.com .SHOULD BE DEVEOPED WITH FOLLOWING CHARACTERISTICS : (A) ORGANISE AROUND PROCESSES & NOT TASKS.a2zmba. (B) HAVE A FLAT ORGANISATION. www.

FOCUS . www.KKH/DM/BU-84 (A) MARKET-BASED PERFORMANCE MEASUREMENT. HORIZONTAL ORG.a2zmba.com FIG.

BRAND MANAGEMENT CRM.a2zmba.KKH/DM/BU-85 SOME OF CORE PROCESSES ARE : (i) (ii) (iii) (iv) CUNSUMER DEVELOPMENT. CUSTOMER SERVICE www.com .

www. WHO FOCUS THE TEAM ON MARKET BASED GOALS.KKH/DM/BU-86      THESE PROCESSES ARE BEST MANAGED BY CROSS-FUNCTIONAL TEAMS. PRODUCTION SHOULD PRODUCE WHAT IS NEEDED BY MARKET. CHANGE FROM VERTICAL TO HORIZONTAL IS IMPORTANT. FOR MARKET DRIVEN LOGISTICS.a2zmba. LEADERS ARE “INTEGRATORS”.com . REWARD SYSTEM SHOULD CHANGE.

TRUCK. AIR. PIPELINES. 3. CAN AFFECT CUSTOMER SATISFACTION. WATERWAYS. 2. RAIL-TRUCK. AIR TRUCK. THEREFORE SELECTION OF RIGHT TRANSPORTATION MODE IS IMPORTANT. www.KKH/DM/BU-87 TRANSPORTATION DECISIONS 1.TRUCKWATER. ALTERNATIVES : RAIL.a2zmba.RAIL-WATER.com .

com . www. SPEED. & COST. AVAILABILITY.  COMMON CARRIERS.  CONTRACT CARRIERS. MARKETERS CHOOSE FROM :  PRIVATE CARRIERS. LOSS / DAMAGE. CRITERIA FOR SELECTION DEPENDABILITY. 5.a2zmba.KKH/DM/BU-88 4.

EACH FIRM STORES FINISHED PRODUCTS UNTIL THEY ARE SOLD. FIRMS MUST DECIDE : (i) HOW MANY WARE HOUSES ARE NEEDED . www.a2zmba. PRODUCTION & COMSUMPTION CYCLES DO NOT ALWAYS MATCH.com .KKH/DM/BU-89 WAREHOUSING DECISIONS 1. THEREFORE. 2. (ii)THEIR LOCATION. 3.

KKH/DM/BU-90 4. 5. DECISION DEPENDS ON : (A) MARKET COVERAGE.a2zmba. TYPES OF WAREHOUSES AVAILABLE (i) PRIVATE (COMPANY OWNED) (ii) PUBLIC (LEASED/RENTED) (iii) STORAGE (MEDIUM-LONG TERM) (iv) DISTRIBUTION CENTRES. (C) DISTRIBUTION COSTS. (B) CUSTOMER SERVICE LEVEL. www.com . (v) AUTOMATED.

INVENTORIES ARE HELD AT: PRODUCTION. A FIRM’S OBJECTIVE : SUPERIOR CUSTOMER SERVICE AT LOWER COST. OUT OF TOTAL INVESTMENT IN ASSETS. 4.KKH/DM/BU-91 INVENTORY MANAGEMENT 1. 3.a2zmba. INVESTMENT IN INVENTORY IS HIGHEST. 2. INVENTORY COST RISES AT FASTER RATE AS CUSTOMER SERVICE LEVEL COMES CLOSER TO 100%. DISTRIBUTION. www. RETAIL LEVELS.com .

KKH/DM/BU-92 5.a2zmba. INVENTORY DECISIONS ARE : (A) WHEN TO ORDER? (B) HOW MUCH TO ORDER? www.com .

MARKETING LOGISTICS/PHYSICAL DISTRIBUTION (PD) COST. P. LS = COST OF LOST SALES.com .a2zmba. DUE TO DELAY IN DELIVARY. www. IS AS FOLLOWS: P = F+W+I+LS F = FREIGHT/TRANSPORTATION COST. W = WAREHOUSE COST.KKH/DM/BU-93 MARKETING LOGISTICS COST AND PERFORMANCE 1. I = INVENTORY COST.

KKH/DM/BU-94

2. TWO APPROACHES FOR PERFORMANCE MEASUREMENT. (A) MINIMISE TOTAL COST OF P.D. (P). (B) RETURN ON INVESTMENTS (ROI).

www.a2zmba.com

KKH/DM/BU-95

MATERIAL HANDLING (M.H.)
OBJECTIVES: TO INCREASE USABLE CAPACITY OF THE WAREHOUSE AND TO IMPROVE OPERATING EFFICIENCY. GUIDELINES/PRINCIPLES OF MATERIAL HANDLING. • OPTIMISE MATERIALS FLOW. • SIMPLIFY BY REDUCING, ELIMINATING, COMBINING MOVEMENTS. • USE GRAVITY PRINCIPLE.
www.a2zmba.com

KKH/DM/BU-96

• MAKE OPTIMUM USE OF BUILDING SPACE. • SELECT RIGHT M.H.EQUIPMENT. • STANDARDISE M.H. METHODS & SIZES/TYPES OF EQUIPMENT. • ADOPT SAFETY PRINCIPLE.

www.a2zmba.com

www.com .a2zmba. 2.KKH/DM/BU-97 BENCHMARKING 1. INITIALLY BENCH MARKING WAS FOCUSED ON COMPETITORS. BUT NOW IT IS FOCUSED ON TOP PERFORMING FIRMS. OR STUDYING “BEST PRACTICE COMPANIES” TO IMPROVE PERFORMANCE. MEANING : STUDYING “WORLD-CLASS PERFORMERS” & ADOPTING “BEST PRACTICES”. REGARDLESS OF THEIR INDUSTRY.

(viii) MONITOR RESULTS. (iv) MEASURE PERFORMANCE OF THESE FIRMS. (iii) IDENTIFY BEST IN CLASS COMPANIES. STEPS INVOLVED IN BENCHMARKING (i) DECIDE WHICH FUNCTIONS TO BENCHMARK.KKH/DM/BU-98 3. MGT. ASK CUSTOMERS. CONSULTING FIRMS. (vi) SPECIFY ACTION PLAN TO CLOSE THE GAP.a2zmba. FOR SR.NO. (ii) IDENTIFY KEY PERFORMANCE VARIABLES. SUPPLIERS. . www. (vii) IMPLEMENT ACTION PLAN.com DISTRIBUTORS. (iii). (v) MEASURE THE COMPANY‟S PERFORMANCE.

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