GROUP 8

Group members
Name

Roll no

Shreeya bachav

06

Kajal gujar

16

Richa gurnani

18

Darshika jain

23

Rahul kalani

35

Hitesh hasija

20

Bhavik jain

22

Forfeiting
Meaning:
Forefeiting is a mechanism by which the right for
export receivables of an exporter (Client) is
purchased by a financial intermediary (Forfaiter)
without recourse to him.
It is a highly flexible technique.
Forfeiting is a highly effective sales too.

Forfeiting-8 Steps
Commercial

contract ; exporter and

foreign buyer.
Commitment to forfeit BE, Promissory
note.
Delivery of goods by exporter to buyer.
Delivery of bills exchange or PN note to
bank to EXIM BANK.
Endorsement of BE/PN without,
resources.

 Cash

payment through a nitro

account.
Presentation of bills of
exchange or promissory note
to buyer on maturity.
Payment of debt instrument
on maturity.

BENEFITS TO EXPORTERS AND

IMPORTER
EXPORTER
Deferred payment
Finances
Hedges
IMPORTER
Grace periods
100% Financing
Interest

Advantages of
Forfeiting
1.

Better liquidity 2. No risk of exchange rate

fluctuations.
3. Simple as well as flexible in
nature.

Disadvantages of
Forfeiting
1.

No legal framework to protect

the banker .
2. It is very expensive.
3. There is no secondary market
for these types of instruments.

Example of forfeiting
Negotiations
Approaches to a forfeiter
Indication
Issues a commitment
Signs the contract
Guarantee
Delivers

Channels

Flow of the organizations offerings, e.g. physical goods or

information, to the ultimate end users (end customer), as
well as that of sales proceeds or realizations from the
customer back to the marketing firm

Marketing or distribution channels:

All entities (e.g. distributors, wholesalers, retailers, broker, agents,
etc.) that perform certain functions for the marketing firm

Communication or contact channels:

Convey information to the customers to raise their awareness about
the firms products and services and persuade them to make
purchases
www.drvkumar.com
Copyright Dr. V. Kumar,
2005

Channel Management
Distribution Channels:
Managing the flow of goods and
services from manufacturer to
end-user

Channel Management
of:
Contact Channels:
Managing the flow of information
between any two parties, using
one or more contact modes

www.drvkumar.com
Copyright Dr. V. Kumar,
2005

Customer Relationships:
Direct, Upstream & Downstream
DIRECT RELATIONSHIP
Goods

Manufacturer

Goods
Information
Dollars

UPSTREAM
RELATIONSHIP

(from channel perspective)

Information
Dollars

End Customer

Goods
Information
Channel
Intermediaries Dollars

DOWNSTREAM
RELATIONSHIP

(from Channel perspective)

www.drvkumar.com

Copyright Dr. V. Kumar,

2005

KEY FACTORS AFFECTING CRM

THROUGH TRADITIONAL CHANNELS
Incentives

for coordinating information

exchange.
Protecting the interest of the channels.
Indirect customer relationship.
Direct customer relationship.
Methods of CRM.

CHALLENGES FACING CRM

THROUGH TRADITIONAL
CHANNELS

Prevent Dilution of CRM strategies

Indirect control of CRM through channels
Eliciting customer information from all
channels for Central Processing
Possible rise in consumer expectation
Multi-channels conversation

Opportunities for CRM

Widening coverage of the consumer population

Improved customer information for the firm

Lower dependency on specific channel partners

Customer self-selection across channels and

individualisation

Challenges for CRM

Media planning becoming increasingly

difficult

Consistency in service level and the need

for IT systems

Channel conflict and channel differentiation