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INITAO COLLEGE Course Code: MM 4

Jampason, Initao, Misamis Oriental
2nd Semester, S.Y. 2021 - 2022 Course Title: Distribution Management

Unit: 3 (Lecture)

Instructor: Instructor:
Ms. Laarni Joy J Conadera
Mobile Number: Mobile Number:
09169014515
Facebook Group Page:
Facebook Group Page:
Handle Group:
Handle Group: BSBA3 G1-G3
MODULE 2:
Topic: Desired Learning Outcomes:
Introduction to Distribution Management
 Explain the importance of distribution channels in
Duration: 3 hrs distribution management under the “place” part of
the marketing mix (4 p’s).
SPECIFIC INSTRUCTION FOR SUBMISSIONS
The students are required to submit the assessment on February 8, Tuesday .
INTRODUCTION
Distribution management refers to the process of overseeing the movement of goods from supplier or
manufacturer to point of sale. It is an overarching term that refers to numerous activities and processes such as
packaging, inventory, warehousing, supply chain, and logistics.

Distribution management is an important part of the business cycle for distributors and wholesalers. The profit
margins of businesses depend on how quickly they can turn over their goods. The more they sell, the more they
earn, which means a better future for the business. Having a successful distribution management system is also
important for businesses to remain competitive and to keep customers satisfied.

Distribution management deals with the “place” part of the marketing mix. This aspect of the marketing function
provides the place, time and the possession utility of the customer. If a consumer wants to buy a tube of Colgate
toothpaste for example, the distribution management in the company ensures that the toothpaste is made
available to this consumer at a retail shop to his residence.
ACTIVITY
Students must be able to read and understand the importance of distribution channels in distribution management
under the “place” part of the marketing mix (4 p’s).
Understanding Distribution Management

Distribution management is critical to a company's financial success and corporate longevity. Executing it
successfully requires effective management of the entire distribution process. The larger a corporation or the
greater the number of supplies points a company has, the more it will need to rely on automation to effectively
manage the distribution process.

Modern distribution management encompasses more than just moving products from point A to point B. It also
involves gathering and sharing relevant information that can be used to identify key opportunities for growth and
competitiveness in the market. Most progressive companies now use their distribution forces to obtain market
intelligence which is vital in assessing their competitive position.

There are basically two types of distribution: commercial distribution (commonly known as sales distribution) and
physical distribution (better known as logistics). Distribution involves diverse functions such as customer service,
shipping, warehousing, inventory control, private trucking-fleet operations, packaging, receiving, materials
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handling, along with plant, warehouse, store location planning, and the integration of information. The goal is to
achieve ultimate efficiency in delivering raw materials and parts, both partially and completely finished products
to the right place and time in the proper condition. Physical distribution planning should align with the overall
channel strategy.

When talking about the distribution management, it’s also under the marketing management responsibility to
oversee the movements and flows of business. The company’s marketing strategy is part of the overall business
plan of the marketing effort, forms a critical part of the marketing strategy. According to the author of the book
Havaldar and Cavale, 2012. It is critical because the distribution channel strategy cannot be frequently changed
as it requires building a network based on sound and long-term relationship.

Distribution strategy could be looking as some of these factors:

 Defining customer service levels. This is the most critical factor in designing the channel strategy. As we
define the customer service level, we need to scrutinize it so that we know the level of our service to
them in order to deliver or meet the needs with a satisfactory level.
 Defining the distribution objectives to achieve these service type levels.
 Outlining the steps or activities required to achieve the distribution channel objectives.
 A clearly defined policy and procedure for the network to carry out its daily activities to achieve the
objectives.

Distribution Channel is a group of people and firms involved in the transfer of title or ownership as the product
moves from the producer to the consumer. Distribution channels can be broadly classified as:

 Sales channel- which has the functions of motivating buyers, sharing information between the consumer
and the company, negotiating fair bargains for the consumer and financing the transactions.
 Delivery channel- which is only meant for physical transactions such as delivering goods from one
company to the retailers or the end user.
 Service channel- performs after sales service to establish long-term relationship.
ANALYSIS
This module talks about the distribution management specifically, the importance of distribution channels in
distribution management under the “place” part of the marketing mix (4 p’s).
APPLICATION
ASSESSMENT REFERENCES
Havaldar, Krishna K., Cavale, Vasant M., Sales and
Distibution Management, 2nd edition (2011)