INTRODUCTION TO DISTRIBUTION MANAGEMENT

Distribution Management

M Wahidul Islam

Spring 2015

LECTURE 1

4P’S OF MARKETING MIX

4P’S OF MARKETING MIXPLACE

Where do buyers look for your product or service?

If they look in a store, what kind? A specialist boutique or in a supermarket, or both? Or online? Or direct, via a catalogue?

How can you access the right distribution channels?

Do you need to use a sales force? Or attend trade fairs? Or make online submissions? Or send samples to catalogue companies?

What do you competitors do, and how can you learn from that and/or differentiate?

Distribution Management

Transport

Area of Supply Chain

Management

Sales Activities

Store Warehouse

Sales Depot

CONCEPT OF DISTRIBUTION

Manufacturing Warehouse

Point of Sales

Pre Production Activities

Production

WHERE DOES IT STAND IN THE COMPANY??

CEO

Production

Manufacturing

Warehousing

Marketing

Product & Brand

Sales / Distribution /

Trade Marketing

Customer Service

Finance HR Admin

Is distribution the most important function of all??

SO, WHAT DOES DISTRIBUTION MANAGEMENT DO?? Distribution management serves the

primary function of ensuring the product or service is available to the consumer within an arm’s length of his / her desire.

It makes sure that the product or service is available to the consumer, When they want Where they want How they want

It provides “time”, “place” and “possession” utility to the consumer

ISN’T DISTRIBUTION SAME AS SALES?

Distribution is a part of Overall Sales Activity Distribution functions execute the overall Sales and

Distribution Strategy Distribution complement Sales and Distribution Strategy

with the management of its elements (i.e. planning, budgeting, sales force management and channels as required)

Sales Management Task

Achievement of volume and market share

Distribution Management Role

Physical movement of goods and storage of products in the market

Ensuring high shelf visibility

Elements of Distribution Managemen

t

Planning, Forecasting & budgeting

Sales Force managemen

t

Product pricing and promotion

Product Visibility

Distribution channels

Channel Information

Systems

Warehousing and

logistics

From recruitment to motivating to leading

the sales force

Physical Goods movement and warehousing

Getting the feedback from channel partners

and insights

The ways you deliver the product to the end

consumer

Making sure that the product is visible and is where it is supposed to

be

Promoting the product through different channels

(consumer, sales force, channel partners etc)

Strategically planning for sales and distribution.

Forecasting and budgeting to achieve the same

ELEMENTS OF DISTRIBUTION MANAGEMENT Planning, Forecasting &

budgeting Strategic planning Deriving the Sales and Distribution

strategy Developing a Sales Forecast Sales Forecasting Methods Sales Budgets

Sales Force management Recruitment the sales force Training the sales force Motivating the sales force Compensating the sales force Leading the sales force

Product pricing and promotion Sales promotion Type of promotion

ELEMENTS OF DISTRIBUTION MANAGEMENT Product Visibility

Product Availability & Visibility / Point of Sales Merchandizing

Ensuring the right product availability

Utilizing the Point of Sales Distribution channels

Channel formats Service channels Prominent channel systems Channel institutions

ELEMENTS OF DISTRIBUTION MANAGEMENT Channel Information Systems

Why an information system?Elements of a Channel

Information SystemChannel performance evaluation

Warehousing and logisticsScope of logisticsOrder processingSupply chain managementFocus areas of logistics and

supply chain managementTechnology in logistics

management

END