Scribd Logo
Upload

Welcome to Scribd!

  • 69 views

    Distribution Management

    Uploaded by

    Likith R
    This document discusses distribution channels and distribution management. Distribution channels consist of interdependent organizations that make products available for consumption. Managing channel members effectively and efficiently is the goal of distribution management. Distribution channels address demand factors like facilitating buyer-seller searches and supply factors like standardizing transactions. Key activities of distribution channels include addressing spatial and temporal discrepancies between production and consumption as well as breaking bulk and providing product assortment. Distribution management involves designing the channel structure and establishing the channel in the ex ante phase, and then motivating and resolving conflicts among channel members in the ex poste phase.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Distribution Management

    Uploaded by

    Likith R
    69 views17 pages
    This document discusses distribution channels and distribution management. Distribution channels consist of interdependent organizations that make products available for consumption. Managing channel members effectively and efficiently is the goal of distribution management. Distribution channels address demand factors like facilitating buyer-seller searches and supply factors like standardizing transactions. Key activities of distribution channels include addressing spatial and temporal discrepancies between production and consumption as well as breaking bulk and providing product assortment. Distribution management involves designing the channel structure and establishing the channel in the ex ante phase, and then motivating and resolving conflicts among channel members in the ex poste phase.

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document discusses distribution channels and distribution management. Distribution channels consist of interdependent organizations that make products available for consumption. Managing channel members effectively and efficiently is the goal of distribution management. Distribution channels address demand factors like facilitating buyer-seller searches and supply factors like standardizing transactions. Key activities of distribution channels include addressing spatial and temporal discrepancies between production and consumption as well as breaking bulk and providing product assortment. Distribution management involves designing the channel structure and establishing the channel in the ex ante phase, and then motivating and resolving conflicts among channel members in the ex poste phase.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    69 views17 pages

    Distribution Management

    Uploaded by

    Likith R
    This document discusses distribution channels and distribution management. Distribution channels consist of interdependent organizations that make products available for consumption. Managing channel members effectively and efficiently is the goal of distribution management. Distribution channels address demand factors like facilitating buyer-seller searches and supply factors like standardizing transactions. Key activities of distribution channels include addressing spatial and temporal discrepancies between production and consumption as well as breaking bulk and providing product assortment. Distribution management involves designing the channel structure and establishing the channel in the ex ante phase, and then motivating and resolving conflicts among channel members in the ex poste phase.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 17

    Distribution Management

    Distribution channels

    It consists of a set of interdependent organizations involved

    making a product or service available for use or consumption.

    Managing the channel members and their activities in a

    effective and efficient manner is distribution management.


    Why – Distribution channel

    a) Demand side factors


    b) Supply side factors
    Why – Distribution channels

    Demand side factors


     They act as a link between buyers and sellers and facilitate the search
    process for buyers and sellers.
     To adjust the discrepancy of assortment through the process of
    sorting, accumulation, allocation and assortment.
    Supply side factors
     Minimize distribution through routinizing and standardizing
    transactions which makes exchange more efficient.
     Reduction in number of reach points/contact points.
    Marketing flows/Functions in Channels
    Activities – Distribution channels
    1. Spatial discrepancy
    2. Temporal discrepancy
    3. Need to break the bulk
    4. Need to provide assortment
    Spatial discrepancy

    It defined as the discrepancy that exists because of the

    physical distance between the location where product is

    manufactured and the location where product is consumed.


    a) It has to consider the end users who are scattered and
    fragmented.
    b) It need to be cost–effective manner.
    Temporal discrepancy
    It is defined as the discrepancy as the discrepancy that

    exists because of the inevitable difference due to time of


    production of goods and its consumption.
    • To reduce this we need to do proper stock management at

    different locations.
    • When stock is perishable commodity the task becomes more

    complex.
    Cost and control aspects

    Cost efficiency

    Control

    Direct Distribution Indirect distribution


    How distribution function adds value

    a) Time utility : utility enjoyed when customer can buy a


    product on need rather than buying and stocking it .

    b) Possession utility : Easy access and possession at a cost.


    c) Place utility : Convenience
    Distribution channel management - Two phases

    The ex ante phase involves all the activities that are


    associated with the design and establishment of the
    distribution channel. These activities actually take place
    before the distribution channel actually starts functioning.

    The ex poste phase involves managing the day to day


    activities of the channel wherein the behavior of the
    individual channel members are coordinated
    Major steps

    1. Setting distribution objectives focusing on customer


    requirements.

    2. Determining and finalizing the activities to achieve the


    objectives
    3. Organizing the activities and assigning it to different
    entities to perform these activities.
    4. Develop policy guidelines for effective functioning.
    Distribution channel management

    Design of the
    channel structure
    Ex ante
    Phase
    Establishing the
    channel
    Distribution Channel Strategy
    • Channel Objective
    · Activity Finalization
    · Organizing the activities Motivating
    · Developing Policy Guidelines Channel
    Members
    Ex Poste
    Phase
    Resolving Conflicts
    among channel
    members
    Issues- Rural distribution

    1) Economic

    2) Physical infrastructure
    3) Service output issues
    4) Diversity
    • Carrying and forwarding agents break the bulk and
    dispatch the assorted products to distributor or

    retailers.

    You might also like

    pFad - Phonifier reborn

    Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

    Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


    Alternative Proxies:

    Alternative Proxy

    pFad Proxy

    pFad v3 Proxy

    pFad v4 Proxy