CHANNEL OF DISTRIBUTION MANAGEMENT

Distribution Management7th Semester BBA

By Nr. Navin Raj SarojM.B.A. (Marketing)

THE MARKETING MIX

Product Price Promotion Place

• Distribution channels help in the “Place” aspect of the marketing mix• Distribution provides place, time and possession utility to the

consumer

MANAGEMENT

Management as a function includes the sub functions of planning, organizing, staffing, co-ordination, controlling, budgeting, reviewing etc. Management is also viewed as a process of motivating others to work and of influencing others or of exercising authority over others in order to achieve the given objectives.

CONCEPT OF DISTRIBUTION MANAGEMENT

Management of all activities which facilitate movement and co-ordination of supply and demand in the creation of time and place utility in goods

The art and science of determining requirements, acquiring them, distributing them and finally maintaining them in and operationally ready condition for their entire life.

OBJECTIVES OF DISTRIBUTION MANAGEMENT

• Fully utilize the available human and material resources to the maximum extent without wastage.

• To increase the rapid growth and development of Country and organization

• Distribution activities are among the most pervasive of all human activities which involve movement and storage of goods for the purpose of achieving the desired objectives; Making right type of goods available at the right time and at the right place.

• Ultimately influenced by the customer expectation

DISTRIBUTION COVERAGEDistribution activities are mainly the result of the separation in distance and time between a production center location and the point of consumption.A manager has to conceptualize the current given rate of production of a particular product undertaken with a given quantum of available resources, s/he will be able to meet the market demand of certain period.Sales channel motivates buyers, shares information between company and its consumers,Delivery channel mean only for physical part of the distribution,Service channel perform after sales service

ASPECTS OF DISTRIBUTION MANAGEMENT

Exist because producer can not reach all the consumers,

Multiply reach and provide efficiency to the marketing process,

Facilitate smooth flow and create time, place and possession utilities,

Have the core competence and reach Provide contact, experience, specialization and

scales of operation

PHYSICAL DISTRIBUTION

Co-ordinating the demand with availability of products for customers. The availability of products can be ensured only after a careful scrutiny of the availability of raw materials, their movement, their processing into finished product and the movement of finished products.

Vendor Production Center

Dealer Customer

Raw Materials movement

Finished Product movement

Returned Goods Movement

PHYSICAL DISTRIBUTION FUNCTIONS

Packaging

Inventory Control

Warehousing

Material handling

Transportation

Location Analysis

Customer Service

Order Processing

Physical Distributi

on

CONCEPT OF LOGISTICSThere is a single chain with flow of materials starting form the supplier, then to the plant and finally to the end customer and also these activities are done sequentially in order to achieve customer satisfaction at low cost. For this to successful there has to be co-ordination in the activities of the department. Logistics means having, the right thing, at the right place, at the right time.Philip Kotler defines Logistics as “Planning, implementing, and controlling the physical flows of materials and finished goods from point of origin to point of use to meet the customer’s need at a profit”.

MARKET LOGISTICS Choices of Markets Procurement Plant location and layout Inventory Management Location and management of warehouses Choices of carriers, mode of transport Customer support Natural resources HR Finance Information

CHANNEL OF DISTRIBUTIONProducer

Retailer

Customer / Consumer

Producer

Distributor

Retailer

Customer / Consumer

Producer

Distributor

Wholesaler

Retailer

Customer / Consumer

REPRESNTATIVE ELECTRONIC MARKETING CHANNELS

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