MID 2 Assignment

Submitted in the partial fulfillment of

The Degree of Masters of Business Administration
Topic: Introduction to SDM and Marketing Channels

Department of Business Management

Dr. Harisingh Gour Vishwavidyalaya, Sagar, M.P.
A central University
Year 2022-23
41st Batch
TOPIC :- INTRODUCTION TO
SDM
AND
MARKETING CHANNELS
Submitted To:
Submitted By:
Professor Yashwant Singh
Hritik kalsiya
Thakur
Y21282021;
Course Co-ordinator
MBA 4th Semester
 SDM: SALES AND DISTRIBUTION
MANAGEMENT

Sales and distribution management, in simple words, refers to the process of managing
the sales and distribution activities of a company.
It involves overseeing the tasks related to selling and delivering products or services to
customers.

Sales management is vital to the success of any business seeking to grow market share.
The following are a few reasons sales management it’s so important:
 – A good sales and distribution management team is first and foremost a revenue
generator. It facilitates sales at a given price that generates profit for the company.
– Sales and distribution management plays a key role in setting and meeting corporate
sales and performance goals.
– Sales and distribution teams stay abreast of customer preferences, government
regulations, competitive sets and other factors impacting sales.
SALES MANAGEMENT
Sales management involves the planning, organization, and control of the sales activities. It
includes setting sales targets, developing sales strategies, managing sales teams, and
monitoring sales performance. The objective of sales management is to drive revenue growth,
increase market share, and achieve sales goals.

DISTRIBUTION MANAGEMENT
Focuses on the effective movement of products or services from the manufacturer to the end
consumer. It encompasses activities such as selecting distribution channels, designing channel
structures, managing relationships with intermediaries (e.g., wholesalers, retailers), and
coordinating logistics and inventory.
 GOALS OF SDM
1. Revenue Generation: The primary goal is to drive sales and generate revenue for the
organization. This involves setting sales targets, implementing effective sales
strategies, and maximizing sales opportunities.

2. Market Expansion: Sales and distribution management aims to expand the

organization's market reach by identifying new customer segments, exploring new
markets, and establishing a presence in untapped regions.

3. Customer Satisfaction: Ensuring customer satisfaction is a crucial goal. By

understanding customer needs, providing excellent service, and delivering products
on time, sales and distribution management aims to meet customer expectations and
build long-term relationships.
4. Channel Optimization: The goal is to select and manage the most effective
distribution channels to ensure that products or services reach customers
efficiently. This involves evaluating channel performance, developing strong
partnerships, and continuously improving channel strategies.

5. Competitive Advantage: Sales and distribution management strives to gain

a competitive edge by differentiating the organization's offerings, providing
unique value propositions, and outperforming competitors in terms of
product availability, customer service, and market coverage.
 KEY ASPECTS OF SDM
1. Channel Selection: Identifying and selecting the most appropriate distribution
channels based on customer preferences, market reach, and product characteristics.

2. Channel Design: Structuring the distribution channels by determining the number

of intermediaries, their roles, and the flow of products through the channel.

3. Relationship Management: Building strong relationships with channel partners

through effective communication, cooperation, and coordination.

4. Logistics and Inventory Management: Managing logistics activities such as

transportation, warehousing, and inventory control to ensure efficient movement of
products.
 MARKETING CHANNELS
A marketing channel is a set of people, organizations, and activities that work together to
transfer goods (products and services) from the point of origin to the point of consumption.
The primary purpose of a marketing channel is to create a connection between the
organization that creates a product or service and prospective customers who may want to
purchase it.
For physical products, there are 4 basic types of marketing channels:
1. Direct selling, where products are marketed and sold directly to consumers without a fixed
retail location
2. Selling through intermediaries, where products are manufactured at the point of origin and
sold to customers by downstream intermediaries such as agents, brokers, wholesalers and
retail stores
3. Dual distribution, where manufacturers combine multiple types of channels to sell products to
the end-user. This could mean that the manufacturer sells directly to customers and also does
business with wholesalers and retailers who sell to customers through their own distribution
networks
4. Reverse marketing, where products move from the customer back to the manufacturer.
Typical cases of reverse marketing include recycling and product recalls
 TWO PRIMARY MARKETING CHANNELS
01 DIRECT
A direct marketing channel involves selling
products or services directly from the
company to the end consumer without
intermediaries. It enables companies to have
full control over the marketing and
distribution process. Examples include
company-owned online stores, direct mail
marketing, telemarketing, and door-to-door
sales.
02 INDIRECT
An indirect marketing channel utilizes intermediaries or
third parties to distribute products or services.
Intermediaries can be wholesalers, retailers, distributors,
agents, or resellers. Companies rely on the expertise and
resources of these intermediaries to reach customers.
Indirect channels offer wider market coverage and access
to established distribution networks. Examples include
selling products through retail stores, online
marketplaces, or utilizing distributors to reach specific
market segments.
 TYPES OF INDIRECT MARKETING
CHANNELS
1. Retail Distribution: Products sold through retail stores, such as
department stores, supermarkets, and specialty stores.

2. Wholesale Distribution: Selling products in bulk to wholesalers who then

distribute them to retailers or other businesses.

3. Distributorship: Selling products to distributors who resell them to

retailers or end consumers, often with exclusive rights in a specific territory
or market segment.
4. Online Marketplaces: Listing and selling products on platforms like Amazon,
eBay, or Alibaba to leverage their wide customer base.

5. Agents or Brokers: Intermediaries who facilitate sales between the company

and customers, earning a commission for each sale.

6. Franchise Distribution: Granting individuals or entities the right to sell

products or services under the company's brand, expanding the distribution
network.
 NEEDS OF MARKETING
CHANNELS
Market Reach: Marketing channels expand the target market by making
products available in various locations, reaching more customers.

Customer Convenience: Channels provide easy access to products, meeting

customer expectations for convenience and availability.

Specialization and Expertise: Intermediaries offer industry-specific

knowledge and resources, enhancing the distribution process.
Cost Efficiency: Channels leverage economies of scale and shared resources,
reducing costs associated with logistics and infrastructure.

Market Insights: Channels provide valuable feedback on customer

preferences, buying behavior, and competitor activities.

Risk Mitigation: Diversifying channels reduces dependence on a single

method and mitigates risks associated with disruptions or market changes.

Brand Visibility and Promotion: Channels offer opportunities for brand

exposure and marketing initiatives.
 SUMMARY
Marketing channels, also known as distribution channels, are the pathways through which
products or services move from the company to the end consumers. They include various
intermediaries or entities involved in the distribution process, such as wholesalers, retailers,
distributors, agents, or online platforms. Marketing channels enable companies to make their
offerings available to customers, increase market coverage, provide convenience, leverage
expertise, and optimize the distribution process.

Sales and distribution management involves the planning, implementation, and control of
activities related to the sales and distribution of products or services. It focuses on maximizing
revenue, expanding market reach, managing relationships with intermediaries, optimizing
logistics, and ensuring customer satisfaction.
REFERENCE

• https://mobileinsight.com/sales-and-distribution-management/
• https://directiveconsulting.com/resources/glossary/marketing-channel/
• https://coschedule.com/marketing-strategy/marketing-channels
• https://blog.hubspot.com/marketing/marketing-channels
• https://www.theceo.in/marketing-news
/what-are-marketing-channels-definition-types-functions-and-more