Distribution research involves determining the optimal number and location of salespeople, retail outlets, warehouses, and discounts. This can involve simulating different scenarios to analyze costs and delivery times for different locations. Common methods include center-of-gravity simulation to minimize distance to customers, computerized simulation models to determine the optimal number and placement of warehouses, and trade area analysis to evaluate market positioning and customer bases. Outlet location research examines methods for individual companies and chains, while research on sales representatives analyzes the optimal number for a given territory.

1. DISTRIBUTION RESEARCH
PRESENTED BY:-
MAHESH KUMAR
SHARMA

2. Distribution Research
Distribution decisions based on the
number and location of salespersons, retail
outlets, warehouses, and the size of
discount to be offered(determined by what
is being offered by existing or similar
products).

3. Warehouses and Retail Location
Research
What costs and delivery times would result if we
choose one location over another?
Ans. Simulation of scenarios.
can be a simple, paper-pencil exercise for
a limited geographic area.
can be a complex, computerized
simulation for a regional or national market.

4. Center-of-Gravity Simulation
 It is used to locate a single warehouse or retail
site.
 Minimize the distance to customers.

5. Computerized Simulation
Models
 Designed to determining how many
warehouses should be used and where they
should be located.
 Required to work on multiple warehouse
location problems.

6. Trade Area Analysis
 It helps in creating mailing lists, evaluating a
store’s or shopping center’s market
positioning, measuring competitive customer
bases, determining the potential of new
location.
 Also helps to evaluating regional retail chains
and acquisition plans.

7. Outlet Location Research
 It deals with individual
companies, chains, financial institutions with
multiple outlets etc.
 Two general methods:-
1) Analogous location method:- involves plotting
the area surroundings the potential site.
2) Multiple regression models:- can be used to
generate a relationship between store sales
and a range of store, population and competitor
characteristics.

8. Number and Location of Sales
Representatives
 How many sales representatives should there
be in a given territory?
 Three general research methods
1) Sales Effort Approach:- Applicable when
the product line is first introduced.
2) statistical analysis of sales data:-can be
used after the sales program is under way.
3) Field Experiments:- also applicable only
after the sales program has begun.

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