SlideShare a Scribd company logo
Distribution
Management
Biju S K
Govt. College for Women
Thiruvananthapuram
Would you think these mangos have value?
Have value, only when it reaches in our hand
Meaning
• Distribution – is the process of creating value to a product or service by making it
available to consumers, who need it.
• Channels of distribution- set of marketing institutions or interrelated
intermediaries who participate in distribution of goods and services from the
manufactures to ultimate consumer.
• Value networks- a set of connections between organisations and individuals in the
marketing channel, interacting with each other, to benefit all the partners of the
entire group.
• Logistic Management- managing the movement and storage of goods from the
supplier to consumer through logistic firm.
Distribution channels
• Producer consumer
• Producer- retailer consumer
• Producer wholesaler retailer consumer
• Producer agent retailer consumer
• Producer agent wholesaler retailer consumer
Factors influencing the
Channels of Distribution
• Nature of Product
• Market
• Price of distribution
• Middlemen
• Target Market
• Company
• Marketing Environment
• Competitors
Widely used product – longer channel
Small customer base product- direct channel
Low value
High Value
Complicated / technical
User Friendly
Perishable- shorter channel
Non perishable- Longer channel
Financially sound – shorter channel – opening its own shops
Not financially sound – longer channel
Wish to control its sales- shorter channel
Manufacturing organisation- competency in production
can choose long channel
May use the channels of the competitor
May outsource or use own chin stores
Small customer base– shorter channel
Larger customer base – longer channel
Small Geographic area – shorter channel
Larger Geographic area – longer channel
Bulk quantity small customers – shorter channel
Small quantity large customers – longer channel
Govt restrictions – use shorter channels
Boom– longer channel
Depression - direct channel
supply chain management.pptx

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supply chain management.pptx

  • 1. Distribution Management Biju S K Govt. College for Women Thiruvananthapuram
  • 2.
  • 3.
  • 4. Would you think these mangos have value? Have value, only when it reaches in our hand
  • 5. Meaning • Distribution – is the process of creating value to a product or service by making it available to consumers, who need it. • Channels of distribution- set of marketing institutions or interrelated intermediaries who participate in distribution of goods and services from the manufactures to ultimate consumer. • Value networks- a set of connections between organisations and individuals in the marketing channel, interacting with each other, to benefit all the partners of the entire group. • Logistic Management- managing the movement and storage of goods from the supplier to consumer through logistic firm.
  • 6.
  • 7. Distribution channels • Producer consumer • Producer- retailer consumer • Producer wholesaler retailer consumer • Producer agent retailer consumer • Producer agent wholesaler retailer consumer
  • 8.
  • 9. Factors influencing the Channels of Distribution • Nature of Product • Market • Price of distribution • Middlemen • Target Market • Company • Marketing Environment • Competitors
  • 10.
  • 11.
  • 12. Widely used product – longer channel Small customer base product- direct channel Low value High Value Complicated / technical User Friendly Perishable- shorter channel Non perishable- Longer channel
  • 13. Financially sound – shorter channel – opening its own shops Not financially sound – longer channel Wish to control its sales- shorter channel Manufacturing organisation- competency in production can choose long channel
  • 14. May use the channels of the competitor May outsource or use own chin stores
  • 15. Small customer base– shorter channel Larger customer base – longer channel Small Geographic area – shorter channel Larger Geographic area – longer channel Bulk quantity small customers – shorter channel Small quantity large customers – longer channel
  • 16. Govt restrictions – use shorter channels Boom– longer channel Depression - direct channel