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Distribution Management & Marketing Mix


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Distribution Management and Marketing Mix - Chapter 8 of Sales and Distribution Management - Text and Cases by Krishna K Havaldar & Vasant M Cavale. Presented to the students of Tolani Institute of Adipur as a part of their Sales & Distribution Management Course

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Distribution Management & Marketing Mix

  1. 1. DISTRIBUTION MANAGEMENT & MARKETING MIX Text Book: Sales & Distribution Management by Krishna K Havaldar & Vasant M Cavale (1st Edition) Pre-Class Reading – Chapter 8 Compiled & Presented By: Anuj Sharma Presented to the students of Tolani Institute of Management
  2. 2. Time Utility Possession Utility Place Utility Presented to the students of Tolani Institute of Management Studies
  3. 3. WHAT IS DISTRIBUTION MANAGEMENT? Management of activities that facilate movement & co-ordination of supply and demand in creation of time and place utility of goods Art & Science of determining requirements, acquiring them, distributing them and finally maintain them in operationally ready condition for their entire lives Movement of raw materials from source of supply to beginning of production line Efficient movement of finished products from end of production line
  4. 4. SEVERAL ROUTES TO REACH THE ULTIMATE CONSUMER Direct  House-to-house campaign  Stall in consumer product exhibition Indirect  C&FA (Carrying & Forwarding Agent)  Distributor – Wholesaler – Retailer
  5. 5. FUNCTIONS PERFORMED BY INTERMEDIARIES Accumulate right kind of goods, aggregating & sorting to meet consumer needs Provide for storage and physical movement of goods Routine and simplified transactions Work with large number of products to minimise distribution costs Buy large variety of goods, compare costs and prices Canvas the sales of products – They do the actual “selling” Make right recommendations to their customers Scan the environment around them Reduce the number of touch points for the manufacturer
  6. 6. HOW TO DETERMINE THE DISTRIBUTION MIX Combination of Direct & Indirect works better Nature of company and its products Nature and dispersal of the company customers Business goals of the company Market expectation of credit Company’s capabilities & strengths Speed of growth desired by the company Company’s market share
  7. 7. ROLE OF DISTRIBUTION CHANNELS TO OVERCOME DISCREPANCIES • Distance between the producer & the consumerSpatial • Time between the producer & the consumerTemporal • Large quantities into acceptable lot sizes for the consumerBreak Bulk • Variety to the consumer to choose fromAssortment • Fund the activities of reaching the product to the consumerFinancial Support
  8. 8. DISTRIBUTION ADDS VALUE Time, place and possession utility to the consumer Delivering to the home of the buyer Installation, demonstration, guidance Troubleshooting & maintenance
  9. 9. EVOLUTION OF A DISTRIBUTION STRATEGY Corporate Strategy Marketing Strategy Distribution Strategy
  10. 10. FACTORS DETERMINING DISTRIBUTION STRATEGY Customer Service Levels Setting Distribution Objectives Set of Activities Distribution Organisation  Extent of in-company support  Costs  Flexibility of channel partners  Financial investment of channel partners Policy & Procedure Key Performance Indicators (KPIs) Critical Success Factors
  11. 11. OVERVIEW OF DISTRIBUTION CHANNELS C&Fas (Carrying & Forwarding Agents) CSAs (Consignment Selling Agents) Distributors, dealers, stockists, agents Wholesalers Retailers
  12. 12. PATTERNS OF DISTRIBUTION Intensive Distribution  As many outlets as possible  Increase coverage to increase sales  Mass goods Selective Distribution  A few select outlets  Outlets selected in line with image that company wants to project  Exclusive products Exclusive Distribution  More selective than selective distribution  One outlet in a market
  13. 13. THANK YOU!!! 13 Grazie Gracias Domo Arigato Merci Danke Obrigado Mahalo शुक्रिया