PowerPoint Presentation On Distribution Management and The Marketing Mix

PPT On Distribution Management and The Marketing Mix

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Presentation Transcript:

1. Distribution Management & The Marketing Mix

2. Learning Objectives
Role of distribution management in the marketing mix
Why distribution channels are required
Distribution channel strategy
Overview of distribution channel members
Intensity in the distribution effort

3. The Marketing Mix
Product
Place
Price
Promotion
Distribution channels help in the ‘place’ aspect of the marketing mix
Distribution provides place, time and possession utility to the consumer

4. Example
Consumer wants to buy a tube of toothpaste
Made available at a retail outlet close to her residence – place
Made available at 8 pm on a Tuesday evening when she wants it – time
She can pay for the toothpaste and take it away – possession
The company distribution function has made all this possible.
The situation would be similar if a customer wants to buy a refrigerator or medicines or even an electric motor

5. Players Involved
The company and its distribution network
Direct company to consumer
Company to a C&FA / distribution center to distributors to retailers
Distributor to wholesaler to retailer
All these intermediaries help the process of ‘exchange’ of the product or service.

6. 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 an operationally ready condition for their entire life.

7. Distribution Channels Defined
Are sets of interdependent organizations involved in the process of making a product or service available for use or consumption – Stern & Ansary
Whether selling products or services, marketing channel decisions play a role of strategic importance in the overall presence and success a company enjoys in the marketplace.

8. Distribution Channels
Are intermediaries or middlemen
Exist because producers cannot reach all their 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, specialisation and scales of operation

9. Types of Channels
Sales: motivates buyers, shares information between company and its consumers, negotiates fair bargains for consumers and finances the transactions
Delivery channel meant only for physical part of the distribution
Service channel – performs after sales service

10. For more info please refer our PPT
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