This document provides an introduction to distribution management. It discusses the 4Ps of marketing mix, with a focus on place and distribution channels. It defines distribution management as ensuring products are available to consumers when, where, and how they want through time, place, and possession utility. Distribution management is part of overall sales activities and complements sales strategy by managing elements like planning, sales force management, product pricing and promotion, visibility, channels, and logistics. The document outlines these key elements of distribution management in more detail.

1. INTRODUCTION TO DISTRIBUTION
MANAGEMENT
Distribution Management
M Wahidul Islam
Spring 2015
LECTURE 1

2. 4P’S OF MARKETING MIX

3. 4P’S OF MARKETING MIX
PLACE
 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?

4. 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

5. 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??

6. 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

7. 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

8. Elements of
Distribution
Management
Planning,
Forecasting
& budgeting
Sales Force
management
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

9. 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

10. 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

11. ELEMENTS OF DISTRIBUTION
MANAGEMENT
 Channel Information Systems
 Why an information system?
 Elements of a Channel Information
System
 Channel performance evaluation
 Warehousing and logistics
 Scope of logistics
 Order processing
 Supply chain management
 Focus areas of logistics and supply
chain management
 Technology in logistics
management

12. END