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

4P’ S OF MARKETING MIX

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?

Distribution Management Transport Area of Supply Chain Management Sales Activities Store Warehouse Sales Depot C ONCEPT OF D ISTRIBUTION Manufacturing Warehouse Point of Sales Pre Production Activities Production

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

S O, 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

I SN ’ 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

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

E LEMENTS 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

E LEMENTS 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

E LEMENTS 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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