Lecture1-Distribution Channel Management - An Introduction
Lecture1-Distribution Channel Management - An Introduction
Lecture1-Distribution Channel Management - An Introduction
Management- An Introduction
Dr. Neeraj Dixit
Associate Professor
IES Management College
Mumbai
Contents
Definition of Distribution Management
Time, Place & Possession Utility
What are Distribution/Marketing channels &
their importance
Functions of distribution channel members
Role of Marketing Channels
Channel functions & Flows
Channel levels
Patterns of distribution
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Distribution ManagementDefinition
Broad range of activities concerned with
MARKETING CHANNELS
Marketing channels are sets of interdependent
decisions:
The companys pricing depends on whether it
uses mass-merchandisers or high-quality
boutiques.
The firms sales force and advertising decisions
depend on how much training and motivation
dealers need.
In addition, channel decisions involve relatively
long-term commitments to other firms as well
as a set of policies and procedures.
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Intermediaries in distribution
Distributor
C&FA( Carrying & Forwarding Agent)
2.
3.
4.
5.
6.
7.
8.
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1.
Physical Flow
Suppliers
2.
Transporters,
Warehouses
Manufacturer
Transporters,
Warehouses
Dealers
Transporters
Customers
Title Flow
Manufacturer
Suppliers
3.
Manufacturer
Banks
Dealers
Banks
Customers
Transporters,
Warehouses,
Banks
Manufacturer
Transporters,
Warehouses,
Banks
Dealers
Transporters,
Banks
Customers
Promotion Flow
Suppliers
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Banks
Information Flow
Suppliers
5.
Customers
Payment Flow
Suppliers
4.
Dealers
Advertising
agency
Manufacturer
Advertising
agency
Dealers
Customers
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Channel Levels
The producer and the final consumer are
1-level
Manufacturer
2-level
3-level
Manufacturer
Manufacturer
Distributor
Distributor
Dealer/Stockist
Consumer
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Retailer
Retailer
Consumer
Consumer
Retailer
Consumer
Petrol pumps
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1-level
Manufacturer
2-level
3-level
Manufacturer
Manufacturer
Manufacturers
representative
Manufacturer's
sales branch
Industrial
distributors
Industrial
Customer
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Industrial
Customer
Industrial
Customer
Industrial
Customer
Patterns of Distribution
This determines the intensity of desired
distribution after a firm has decided on
the most appropriate channels of
distribution.
In a way, the intensity denotes the service
level that the organization provides to its
customers.
There are three types of Distribution intensity
1. Intensive Distribution.
2. Selective Distribution
3. Exclusive Distribution
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Intensive distribution
This strategy is to make sure that the product is
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Selective Distribution
Only a few select outlets are permitted to
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Exclusive Distribution
Exclusive distribution means severely
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Pharmaceutical distribution
Stockists in India operate on a margin of
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Application Question
Sharpedge
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