1. HOW DOES DISTRIBUTION ADD
VALUE
The distribution function using the network of
the channel partners adds value to the selling
function by providing
Time
Place and
Possession utility to the consumer.
Ex : Buy a television
3. THE DISTRIBUTION STRATEGY COULD
BE LOOKING AT SOME OF THESE
FACTORS
1. Customer service levels
2. Setting distribution objectives
3. Set of activities
4. The distribution organization
5. Policy and procedure
6. Key performance indicators
7. Critical success factors
4. CUSTOMER SERVICE LEVELS
The nature of the industry in which the company
is operating, its products and services, its market
share and the nature of competition help define
the level of customer service the firm can
promise its customers.
5. SETTING DISTRIBUTION
OBJECTIVES
The customers also have certain expectations
from the company and its channel partners
Ex: Retailers selling HUL products would want
the company and its distributors to service them
in such a way that they hold minimum stocks
and at the same time never run out of stocks.
6. SET OF ACTIVITIES
This task is normally performed jointly by the
company sales personnel along with the channel
partners. Some of these steps could be.
Periodic sales forecasts by geography
Collecting of sales proceeds
Carrying out promotional activities
7. THE DISTRIBUTION ORGANISATION
The firm has to now determine as to who will do
what. this step will healp define the organisation
structure to support the entire strategy.
Selecting clear objectives for each of the channel
partners and systems to monitor the activities
and measure the performance of the channel
partners.
8. POLICY AND PROCEDURE
It is expected that the company sales personnel
and its channel partners understand what is
expected of them and discharge their roles and
responsibilities faithfully.
The operations manual is capable of answering
any query on procedure which the sales people
or the channel
9. KEY PERFORMANCE INDICATORS
The effectiveness of the strategy can only be
judged if the company has agreed on certain
measurement criteria with its channel partners
Some of the most popular K P I are
Achievement of market shares
Zero complaints from the customers
Market coverage with ready stocks
Minimize damages to products
10. CRITICAL SUCCESS FACTORS
The distribution strategy also will be successful
if it has the support and backing of the top
management of the company.
Some of the CSF are
Clear, transparent and unambiguous policy and
procedure.
Fair dealing of the company with all its partners.
Clearly defined customer service policy.
11. AN OVERVIEW OF DISTRIBUTION
CHANNELS
A distribution channel is a group of people and
firm involved in the transfer of title or ownership
as the product moves from the producer to
ultimate consumer.
13. SALES CHANNEL
Which has the function of motivating buyers,
sharing information between the consumer and
the company,negotiationg fair bargains for the
consumer and financing the transaction.
14. DELIVERY CHANNEL
Which is only meant for physical transactions.
SERVICE CHANNEL
Which performs after sales service like a Maruti
service station