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Lecture Sales and distribution management: Chapter 8 - Krishna K Havaldar, Vasant M Cavale

Chapter 8, distribution management & the marketing mix. After studying this chapter you will be able: 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. | Chapter 8 Distribution Management & The Marketing Mix SDM- Ch 8 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 SDM- Ch 8 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 SDM- Ch 8 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 SDM- Ch 8 Players Involved The company and its distribution network | Chapter 8 Distribution Management & The Marketing Mix SDM- Ch 8 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 SDM- Ch 8 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 SDM- Ch 8 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 SDM- Ch 8 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. What is distribution management? SDM- Ch 8 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. A distribution channel SDM- Ch 8 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. .