Subject: Pharmaceutical Marketing and Management Full Marks - 50 1. Personnel Management: a) Definition, scope, importance, behavioral science and personnel management. b) Motivation, moral and job satisfaction. c) Education, training, management development and performance evaluation. d) Means of achieving harmonious industrial relation collective bargaining, joint consultation worker council, arbitration, and industrial democracy. 2. Production Management: Definition, scope, importance and application of management, techniques and principles to production management, production planning and quality control. 3. Materials Management: a) Purchasing: Formulating effective buying policies, determination of needs and desires of patrons, selecting the sources of supply, determination the terms of purchase, receiving, marketing and stocking goods. b) Inventory control: Methods of inventory control, selection of optimum method, effect of inventory control. 4. Risks Management 5. Pharmaceutical Marketing: a) Promotion: Objectives, classification, developing a promotional plan, promotion strategy, budget and executing the program. Steps of implantation of advertising, types (display, direct mail, etc.) and preparation of advertisement. Personal selling and evaluation of promotion (general and specialized method). b) Pricing: General consideration, pricing method, prescription pricing and professional fees. c) Channel of distribution d) Forecasing of sales 5. Management of Community Pharmacy and Governmental Pharmacy.

1. Page 1 of 5
Edited By: Jaytirmoy Barmon Distribution
Lecturer, Pharmacy, Varendra University
Distribution
Prepared by:
Md. Sanowar Hossain
G. M. Masud Parvez &
Jaytirmoy Barmon
Q. What do you mean by distribution? What are the strategic approaches to distribution?
Distribution
Distribution is the process of making a product or service available for the consumer or
business user who needs it. Distribution is fundamentally concerned with ensuring that
products reach target customers in the most direct and cost efficient manner.
Distribution involves doing the following things:
1) A good transport system to take the goods into different geographical areas.
2) A good tracking system so that the right goods reach at the right time in the right
quantity.
3) A good packaging, which takes the wear and tear of transport.
4) Tracking the places where the product can be placed such that there is a maximum
opportunity to buy it.
5) It also involves a system to take back goods from the trade.
Distribution strategies
Strategically, there are three approaches to distribution
1. Mass distribution (also known as intensive distribution): When products are destined for
a mass market, the marketer will seek out intermediaries that appeal to a broad market
base. For example, snack foods and drinks are sold via a wide variety of outlets including
supermarkets, convenience stores, vending machines, cafeterias and others.
2. Selective distribution: A manufacturer may choose to restrict the number of outlets
handling a product. This strategy is commonly observed for more specialized goods that
are carried through specialist dealers. For example, medicine, cosmetics and skincare sales
staff are trained to use the product range. The manufacturer will only allow trained
clinicians to sell their products.
3. Exclusive distribution: In an exclusive distribution approach, a manufacturer chooses to
deal with one intermediary or one type of intermediary. The advantage of an exclusive
approach is that the manufacturer retains greater control over the distribution process. In
exclusive arrangements, the distributor is expected to work closely with the manufacturer
and add value to the product through service level, after sales care or client support
services. Another definition of exclusive arrangement is an agreement between a supplier
and a retailer granting the retailer exclusive rights within a specific geographic area to
carry the supplier's product. This strategy is typical of luxury goods.

2. Page 2 of 5
Edited By: Jaytirmoy Barmon Distribution
Lecturer, Pharmacy, Varendra University
Components of distribution
Following are some important components of distribution-
o Agents: Agents are middlemen who represent the produces to the customer. They are
merely an extension of the company but the company is generally bound by the
actions of its agents. One thing to keep in mind, the ownership of the goods do not
pass to the agent. They only work on fees and commissions.
o Wholesalers: Wholesalers buy the goods from the producers directly. One important
characteristic of wholesalers is that they buy in bulk at a lower rate than retail price.
They store and warehouse huge quantities of the products and sell them to other
intermediaries in smaller quantities for a profit.
o Distributors: Distributors are similar to wholesalers in their function. Except they
have a contract to carry goods from only one producer or company. They do not stock
a variety of products from various brands. They are under contract to deal in
particular products of only one parent company.
o Retailers: Retailers are basically shop owners. Whether it is your local grocery store
or the mall in your area they are all retailers. The only difference is in their sizes.
Retailers will procure the goods from wholesaler or distributors and sell it to the final
consumers. They will sell these products at a profit margin to their customers.
Push vs pull strategy
In consumer markets, another key strategic level decision is whether to use a push or pull
strategy. In a push strategy, the marketer uses intensive advertising and incentives aimed at
distributors, especially retailers and wholesalers, with the expectation that they will stock the
product or brand, and that consumers will purchase it when they see it in stores. In contrast,
in a pull strategy, the marketer promotes the product directly to consumers hoping that they
will pressure retailers to stock the product or brand, thereby pulling it through the distribution
channel. The choice of a push or pull strategy has important implications for advertising and
promotion. In a push strategy the promotional mix would consist of trade advertising and sales
calls while the advertising media would normally be weighted towards trade magazines,
exhibitions and trade shows while a pull strategy would make more extensive use consumer
advertising and sales promotions while the media mix would be weighted towards mass-
market media such as newspapers, magazines, television and radio.

3. Page 3 of 5
Edited By: Jaytirmoy Barmon Distribution
Lecturer, Pharmacy, Varendra University
Distribution channel
It is the way products get to the end-user, the consumer; and is also known as a marketing
channel.
A firm can design any number of channels they require to reach customers efficiently and
effectively. Channels can be distinguished by the number of intermediaries between producer
and consumer. If there are no intermediaries then this is known as a zero-level distribution
system or direct marketing. A level one (sometimes called one-tier) channel has a single
intermediary. A level two (alternatively a two-tier) channel has two intermediaries, and so on.
This flow is typically represented as being manufacturer to retailer to consumer, but may
involve other types of intermediaries. In practice, distribution systems for perishable goods
tend to be shorter - direct or single intermediary, because of the need to reduce the time a
product spends in transit or in storage. In other cases, distribution systems can become quite
complex involving many levels and different types of intermediaries.

4. Page 4 of 5
Edited By: Jaytirmoy Barmon Distribution
Lecturer, Pharmacy, Varendra University
Q. What do you mean by distribution network? What are the benefits and factors
influencing distribution network?
Distribution Network
A distribution network is an interrelated arrangement of people, storage facilities and
transportation system that’s moves goods and services from producers and consumers.
A distribution network is the system a company uses to get products from the manufacturer to
the retailer.
Distribution networks come at the post-manufacturing part of a supply chain- the flow of goods
and services and includes all processes that transform raw materials into final products and into
the hands of consumers.
Benefits
 Reduced distribution costs
 Improved understanding of customer service needs and options
 Improved understanding of service costs
 Appropriate balance of storage, inventory and transport costs
 Graphical mapping of customer demand and density
 Access to leading distribution network modeling tools and methods
Factors influencing distribution network
1. Customer needs that are met.
2. Cost of meeting customer needs- The customer needs that are met influence the
company's revenues, which along with cost decide the profitability of the delivery
network.
3. Response time- Response time is the amount of time it takes for a customer to receive
an order.
4. Product variety- Product variety is the number of different products/configurations that
are offered by the distribution network.
5. Product availability- Product availability is the probability of having a product in stock
when a customer order arrives.
6. Customer experience- includes the ease with which customers can place and receive
orders as well as the extent to which this experience is customized
7. Time to market- Time to market is the time it takes to bring a new product to the market.
8. Order visibility- Order visibility is the ability of customers to track their orders
from placement to delivery.
9. Returnability- Returnability is the ease with which a customer can return
unsatisfactory merchandise and the ability of the network to handle such returns.
KEY TAKEAWAYS
 In a supply chain, a distribution network is an interconnected group of storage facilities
and transportation systems that receive inventories of goods and then deliver them to
customers.
 It is an intermediate point to get products from the manufacturer to the end customer,
either directly or through a retail network.
 A fast and reliable distribution network is essential in today's instant gratification
society of consumers.

5. Page 5 of 5
Edited By: Jaytirmoy Barmon Distribution
Lecturer, Pharmacy, Varendra University
Q. What are the steps to improve your distribution network?
A strong Distribution network works almost like automation, where in manufacture the
product, and if the distribution is strong, the product reaches the end customers very
fast.
1) Keep track of channel dealers:
By keeping track of your distribution channel and your channel dealers, you can clearly see
which areas need improvement, which areas could still expand and which areas you might have
to abandon. You would come to know where you need more channel dealers. In case you have
to abandon an area, get ready to open a new area so as to enhance your existing distribution
network further; just so you are able to mitigate the losses you would have incurred.
2) Inventory management and tracking:
Meticulous inventory of your stock in different sales outlets and the subsequent sales data will
tell you what your averages are. With that average in hand, you will see which areas are selling
your products better, and which areas are not performing up to par. One more thing that could
help is to have a record of your marketing histories in all regions where you have distribution
networks.
3) Focus on local markets:
In cases where the sale is great so not much marketing has been put in, remember to never rest
on your laurels. Keep saturating your target markets with surveys and promotional surveys as
a cover for discreet data mining.
4) Focus on segmentation (example geographic):
When sales is below average, take a look at marketing history again. What has been done here?
What has not been done here? If your marketing efforts are performed equally in the complete
distribution network, then perhaps the low sales are a result of lower population densities
5) Marketing expansion or Product expansion:
If after several years, your distribution channel remains stagnant, then you may have reached
the limits of that market for that particular product. There are other products to market. Perhaps
you were marketing 8 to 10 products regularly.
6) Switch channel members when needed:
Be aware of the leaders of your distribution networks in every area. Each of them will have
their favorite methods to use. If their methods are failing, it would be unnecessary to force them
to use other marketing methods. Simply switch leaders laterally to different regions where their
specialization is most needed.
7) Keep a tab on market changes:
A customer will buy a product to try from time to time, but they will mostly buy the same
product they like over and over again. And they will keep on buying it, because a product has
something they want. This is where surveys are necessary.