1. Trang chủ
  2. » Luận Văn - Báo Cáo

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

32 101 0

Đang tải... (xem toàn văn)

Tài liệu hạn chế xem trước, để xem đầy đủ mời bạn chọn Tải xuống

THÔNG TIN TÀI LIỆU

Thông tin cơ bản

Định dạng
Số trang 32
Dung lượng 343,01 KB

Nội dung

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 Distribution Management & The Marketing Mix  SDM­ Ch 8  Tata McGraw Hill  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  Tata McGraw Hill  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  Tata McGraw Hill  Example • Consumer wants to buy a tube of toothpaste – Made available at a retail outlet close to her residence – place – Made available at 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  Tata McGraw Hill  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  Tata McGraw Hill  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  SDM­ Ch 8  Tata McGraw Hill  A distribution channel… 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  SDM­ Ch 8  Tata McGraw Hill  Distribution Channels • Are intermediaries or middlemen – Exist because producers cannot reach all their consumers – Multiply reach and provide efficiency to the marketing process – Facilitate smooth flow and create time, place and possession utilities – Have the core competence and reach – Provide contact, experience, specialisation and scales of operation  SDM­ Ch 8  Tata McGraw Hill  Types of Channels • Sales: motivates buyers, shares information between company and its consumers, negotiates fair bargains for consumers and finances the transactions • Delivery channel meant only for physical part of the distribution • Service channel – performs after sales service Channel members…  SDM­ Ch 8  Tata McGraw Hill  Listing of Channel Members • Company own sales team • C&FAs and CSAs • Distributors, dealers, stockists, value-added re-sellers • Agents and brokers • Franchisees • Electronic channels • Wholesalers • Retailers  SDM­ Ch 8  Tata McGraw Hill  10 Distribution Intensity • Intensive: distribution through every reasonable outlet available – FMCG • Selective: multiple, but not all outlets in the market – pharma, frozen food • Exclusive: may be only one outlet in a market - car dealers  SDM­ Ch 8  Tata McGraw Hill  18 Intensive Distribution • Strategy is to make sure that the product is available in as many outlets as possible • Preferred for consumer, pharmaceutical products and automobile spares  SDM­ Ch 8  Tata McGraw Hill  19 Selective Distribution • A few select outlets will be permitted to keep the products • Outlets selected in line with the image the company wants to project • Preferred for high value products • Tanishque jewelry • Keeps distribution costs lower  SDM­ Ch 8  Tata McGraw Hill  20 Exclusive Distribution • Highly selective choice of outlets – may be even one outlet in an entire market • Could include outlets set up by companies – Titan, Bata • Producer wants a close watch and control on the distribution of his products Channel strategy…  SDM­ Ch 8  Tata McGraw Hill  21 Distribution Channel Strategy • Derived from the corporate strategy and the marketing strategy • Steps for designing the distribution strategy are: – – – – – – Defining customer service levels Distribution objectives and steps Structure of the network required Policy and procedure to be followed Key performance indicators Critical success factors  SDM­ Ch 8  Tata McGraw Hill  22 Customer Service Levels • Defined by the nature of the industry, the products, competition and market shares • Affordability also decides the service level • It should at least match competition • Customer expectations have no limit  SDM­ Ch 8  Tata McGraw Hill  23 Distribution Objectives • Influenced by the customer expectations • Defines the extent of time, place and possession utility which the customer can expect out of the channel network Set of activities…  SDM­ Ch 8  Tata McGraw Hill  24 Set of Activities • Manner in which the company and its marketing channels go about achieving the customer service levels • Some of these steps could be: – – – – – – Sales forecasts Despatch plans Market coverage beat plans Journey plans for service engineers Collection of sales proceeds Carrying out promotional activities • The company also decides as to who is to perform which task  SDM­ Ch 8  Tata McGraw Hill  Organization… 25 Distribution Organization • Extent of company support and outsourcing to be decided • Budget for the cost of the distribution effort • Select suitable channel partners – C&FAs, and distributors • Setting clear objectives for the partners • Agree on level of financial commitments by the channel partners Policy and procedure  SDM­ Ch 8  Tata McGraw Hill  26 Policy & Procedure • Define policy and implementation guidelines through Operating Manuals • Policy guidelines include – Code of conduct for channel members – System for redressal of complaints – Any additional subsidies etc – Handling institutional business – Service policy for engineering products  SDM­ Ch 8  Tata McGraw Hill  KPIs… 27 Key Performance Indicators • For measurement of effectiveness Some of these could be: – Consistent achievement of targets by product groups, periods and territories – Achievement of market shares – Achievement of profitability – Zero complaints from customers – No stock returns – Ability to handle emergencies and sudden spurts in demand  SDM­ Ch 8  Tata McGraw Hill  28 Key Performance Indicators • For measurement of effectiveness Some of these could be: – Balanced sales achievement during a period – no period end skews – Market coverage with ready stocks – Excellent management of accounts receivables – Minimize losses on account of stock-outs – Minimize damages to products  SDM­ Ch 8  Tata McGraw Hill  29CSFs… Critical Success Factors • The distribution strategy also needs the support and encouragement of top management to succeed • Some of the CSFs could be: – Clear, transparent and unambiguous policy and procedure – Serious commitment of the channel partners – Fairness in dealings – Clearly defined customer service policy – High level of integrity – Equitable distribution at times of shortage – Timely compensation of channel partners  SDM­ Ch 8  Tata McGraw Hill  30 Key Learnings • Companies use distribution channels to reach their large customer base • The channel members could be nominated like distributors or freelance like retailers • Distribution channels provide the time, place and possession utility for consumers for the company products • Distribution channels could be sales, service or delivery focused  SDM­ Ch 8  Tata McGraw Hill  31 Key Learnings • Companies could also choose the intensity of distribution based on their products and distribution objectives • Distribution could be intensive, selective or exclusive • The distribution strategy takes care of service levels, objectives, activities, organisation to deliver the service, measurement of performance and critical success factors  SDM­ Ch 8  Tata McGraw Hill  32 ... service What is distribution management?  SDM­ Ch 8  Tata McGraw Hill  Distribution Management • Management of all activities which facilitate movement and co-ordination of supply and demand in the... Achievement of profitability – Zero complaints from customers – No stock returns – Ability to handle emergencies and sudden spurts in demand  SDM­ Ch 8  Tata McGraw Hill  28 Key Performance Indicators... channel meant only for physical part of the distribution • Service channel – performs after sales service Channel members…  SDM­ Ch 8  Tata McGraw Hill  Listing of Channel Members • Company own sales

Ngày đăng: 18/01/2020, 19:50

TỪ KHÓA LIÊN QUAN

TÀI LIỆU CÙNG NGƯỜI DÙNG

TÀI LIỆU LIÊN QUAN

w