sales ethics111

8/2/2019 Sales Ethics111

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CHANNEL INFORMATION

SYSTEM.


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The Nature of Marketing Channels

Distribution

The activities that make products available to customers whenand where they want to purchase them.

Marketing Channel A group of individuals

and organizationsdirecting productsfrom producers to

customers.


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CIS Channel Information System

WHAT IS IT?

The purpose of CIS is to collect and analyze dataabout the operations of channels.

WHY IS IT NEEDED?

To assess the performance of the channels. To take corrective action to improve performance.


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PROCESS OF CIS


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DEVELOPING A CHANNEL MIS

DECIDE WHAT INFORMATION IS REQUIRED

How often & when?

ORGANIZE INFORMATION SUITABLE FORINTERPRETATION AND ACTION

Operational information with little strategic intent.

DECIDE WHO WILL USE THE INFORMATIONWHEN AND FOR WHAT PURPOSE

Salesperson or Channel partner.


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Channel Design Decisions

Analyzing Consumer Needs.

Setting Channel Objectives.

Identifying Major Alternatives. Types of intermediaries.

Number of intermediaries.

Responsibilities of intermediaries.


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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.


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Legal Issues in Channel Management

Dual DistributionA producer can use two different channels to reach the same

target market as long as it is not trying to engage in unfaircompetition and put its independent distributors out of

business.

Restricted Sales TerritoriesGranting exclusive sales territory rights to distributors is

permissible if the rights do not restrain trade.

Tying ArrangementsRequiring a channel member to buy additional products from the

supplier in order to purchase a particular product from thesupplier.


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Legal Issues in Channel Management

Contd

Full-Line Forcing

Requiring a channel member to carry a suppliers entireproduct 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.


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Sales Ethics

Ethics are the moral principles and values thatgovern the actions and decisions of an individual orgroup. They serve as guidelines on how to act rightly

when faced with moral dilemmas.


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Why is Trust Important?

Afundamental competitive strategy of a growingnumber of organizations is to build long-term

mutually beneficial relationships with theircustomers. The ability of those organizationssalespeople to earn their customers trust isessential to the success of that strategy.


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Unsubstantiated Claims

The Dettol Soap TV commercial (TVC) had said thattheir product eliminates the organisms [of coughand cold] ten times faster than other soaps and thatit also eliminates organisms that cause

gastrointestinal diseases. Neither of these claimscould 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 creamin a TVC had to be withdrawn as the company couldnot substantiate its claim.


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Wild claims bordering on sheer lies.

In an ad for Hyundai Verna which appeared on thecompanys 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 acustomer 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 packat Rs 200/- instead of Rs 300/- This was found to be anoutright lie as the new, cheaper, package came without

some premium channels! So all that the company wasactually doing was offering a cheaper option. Thecompany had to withdraw their TVC.


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Ads offending the sensibilities of people

A television ad of the ING Vysya Life Insuranceshowed the father of a young girl distressed at thecost of the higher education of his daughter. Visuallythis was shown by the ground breaking beneath him!

In another scene, a father was shown to be distressedby the birth of a baby girl because of the financialcost involvedand again the ground was shown to be

breaking underneath him. This ad was considered

anti-womenbut even though the ad was asked to bewithdrawn, by that time the ad campaign hadalready ended, in February 2008.


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THANK YOU!!!!!!

sales ethics111

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