D ISTRIBUTION C HANNELS - 2 MKT 405: Distribution Management M Wahidul Islam Summer 2014.
I NTRODUCTION TO DISTRIBUTION MANAGEMENT Distribution Management M Wahidul Islam Spring 2015 LECTURE...
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Transcript of I NTRODUCTION TO DISTRIBUTION MANAGEMENT Distribution Management M Wahidul Islam Spring 2015 LECTURE...
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