DISTRIBUTION

SPOT MANAGEMENT
for the21st Century
KEY DIFFERENTIATORS
customers now have access to products worldwide and
expect specialized products to fit their specific needs

better able to react with changes efficient and cost-

quickly identify in operational tactics conscious
trends
DISTRIBUTION: MEANING
AND CONCEPT

MAIN CONCEPT
Distribution – Refers to the
development of arrangements
necessary to transfer ownership
of a product and its
transportation from where it is
finally consumed.
WHAT IS DISTRIBUTION
MANAGEMENT?
Distribution management is part of the
supply chain process that ultimately
delivers goods to end-users or
consumers.

Managing distribution is essentially

managing the movement of goods,
whether it be from a wholesaler to a
retailer or from a retailer to a consumer.
VIRTUAL STORES
 Marketing channel
management is concerned
with the entire process of

USER BENEFIT
setting up and operating
the contractual organization
that is responsible for
meeting the distribution
objectives of firms.

THERE ARE BASICALLY FOUR TYPES

OF MARKETING CHANNELS:
1. direct selling- directly to consumers away from
a fixed retail location
2. Selling through intermediaries - wholesalers and
retailers are utilized to make a product available
to the customer
3. Dual distribution - They may sell directly to the
end users as well as sell to other companies for
resale.
4. Reverse channels - from consumer to
intermediary to beneficiary.
Technology, however, has made another flow possible. This one goes in the
reverse direction and may go -- from consumer to intermediary to the
beneficiary. Think of making money from the resale of a product or recycling.
LOGISTICS
MANAGEMENT – is focused more on
providing product availability
at appropriate times and on
places in the marketing
channel.
 LOGISTICS MANAGEMENT INVOLVES
NUMEROUS ELEMENTS, INCLUDING:
Selecting appropriate vendors with the ability
to provide transportation facilities

Choosing the most effective routes for

transportation

Discovering the most competent delivery

City 1 City 1
method
City 2 City 2
Using software and IT resources to proficiently
handle related processes
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 happy.
•Distribution management helps keep things organized
and keeps customers satisfied.
Item 5 Item 1
20% 20%
•The larger a corporation, or the greater the number of
supply points a company has, the more it will need to rely
on automation to effectively manage the distribution
process.

•Most progressive companies now use their distribution

forces to obtain market intelligence which is vital in
Item 4 Item 2
assessing their competitiveness. 20% 20%

•First, it keeps things organized. If there was no proper

management system in place, retailers would be forced
to hold stock in their own locations—a bad idea, Item 3
especially if the seller lacks proper storage space. 20%
 BUSINESS GOAL

•Distribution channels help in the

‘place 'aspect of the marketing Customer
Market & Performance
Insight
mix
STRATEGY

•Distribution provides place, time

Market Mix
and possession utility to the Competitor
Modeling

consumer

MARKETING PLAN
SCENE: 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

THANK YOU!

imAWESOME!