LECTURE 1 INTRODUCTION TO DISTRIBUTION MANAGEMENT Distribution Management

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

4 P’S OFMARKETING MIX

4 P’S OFMARKETING 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?

CONCEPT OF DISTRIBUTION Pre Production Activities Area of Supply Chain Management Production Manufacturing Warehouse Sales Depot Transport Store Warehouse Distribution Management Point of Sales Activities

WHERE DOES IT STAND IN THE COMPANY? ? CEO Production Marketing Manufacturing Product & Brand Warehousing Sales / Distribution / Trade Marketing Finance HR Admin Customer Service Is distribution the most important function of all? ?

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

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

Strategically planning for sales and distribution. Forecasting and budgeting to achieve the same From recruitment to motivating to leading the sales force Planning, Forecasting & budgeting Physical Goods movement and warehousing Warehousing and logistics Sales Force management Getting the feedback from channel partners and insights Elements of Distribution Management Channel Information Systems The ways you deliver the product to the end consumer Promoting the product through different channels (consumer, sales force, channel partners etc) Distribution channels Product pricing and promotion Product Visibility Making sure that the product is visible and is where it is supposed to be

ELEMENTS OF DISTRIBUTION MANAGEMENT Planning, Forecasting & budgeting � � � Sales Force management � � � Strategic planning Deriving the Sales and Distribution strategy Developing a Sales Forecasting Methods Sales Budgets 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 �

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

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

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