Distribution Management and Marketing Mix - Chapter 8 of Sales and Distribution Management - Text and Cases by Krishna K Havaldar & Vasant M Cavale. Presented to the students of Tolani Institute of Adipur as a part of their Sales & Distribution Management Course

1. DISTRIBUTION
MANAGEMENT &
MARKETING MIX
Text Book: Sales &
Distribution Management
by Krishna K Havaldar &
Vasant M Cavale (1st
Edition)
Pre-Class Reading –
Chapter 8
Compiled & Presented By:
Anuj Sharma
Presented to the students of
Tolani Institute of Management

2. Time
Utility
Possession
Utility
Place
Utility
Presented to the students of
Tolani Institute of Management
Studies

3. WHAT IS DISTRIBUTION
MANAGEMENT?
Management of activities that facilate movement & co-ordination of
supply and demand in creation of time and place utility of goods
Art & Science of determining requirements, acquiring them,
distributing them and finally maintain them in operationally ready
condition for their entire lives
Movement of raw materials from source of supply to beginning of
production line
Efficient movement of finished products from end of production line

4. SEVERAL ROUTES TO REACH THE
ULTIMATE CONSUMER
Direct
 House-to-house campaign
 Stall in consumer product exhibition
Indirect
 C&FA (Carrying & Forwarding Agent)
 Distributor – Wholesaler – Retailer

5. FUNCTIONS PERFORMED BY
INTERMEDIARIES
Accumulate right kind of goods, aggregating & sorting to meet
consumer needs
Provide for storage and physical movement of goods
Routine and simplified transactions
Work with large number of products to minimise distribution costs
Buy large variety of goods, compare costs and prices
Canvas the sales of products – They do the actual “selling”
Make right recommendations to their customers
Scan the environment around them
Reduce the number of touch points for the manufacturer

6. HOW TO DETERMINE THE
DISTRIBUTION MIX
Combination of Direct & Indirect works better
Nature of company and its products
Nature and dispersal of the company customers
Business goals of the company
Market expectation of credit
Company’s capabilities & strengths
Speed of growth desired by the company
Company’s market share

7. ROLE OF DISTRIBUTION CHANNELS
TO OVERCOME DISCREPANCIES
• Distance between the producer & the consumerSpatial
• Time between the producer & the consumerTemporal
• Large quantities into acceptable lot sizes for the consumerBreak Bulk
• Variety to the consumer to choose fromAssortment
• Fund the activities of reaching the product to the consumerFinancial Support

8. DISTRIBUTION ADDS VALUE
Time, place and possession utility to the consumer
Delivering to the home of the buyer
Installation, demonstration, guidance
Troubleshooting & maintenance

9. EVOLUTION OF A DISTRIBUTION
STRATEGY
Corporate
Strategy
Marketing
Strategy
Distribution
Strategy

10. FACTORS DETERMINING
DISTRIBUTION STRATEGY
Customer Service Levels
Setting Distribution Objectives
Set of Activities
Distribution Organisation
 Extent of in-company support
 Costs
 Flexibility of channel partners
 Financial investment of channel partners
Policy & Procedure
Key Performance Indicators (KPIs)
Critical Success Factors

11. OVERVIEW OF DISTRIBUTION
CHANNELS
C&Fas (Carrying & Forwarding Agents) CSAs (Consignment Selling
Agents)
Distributors, dealers, stockists, agents
Wholesalers
Retailers

12. PATTERNS OF DISTRIBUTION
Intensive Distribution
 As many outlets as possible
 Increase coverage to increase sales
 Mass goods
Selective Distribution
 A few select outlets
 Outlets selected in line with image that company wants to project
 Exclusive products
Exclusive Distribution
 More selective than selective distribution
 One outlet in a market

13. THANK YOU!!!
13
Grazie
Gracias
Domo Arigato
Merci
Danke
Obrigado
Mahalo
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